Any hopeful startup will want a space that inspires productivity and creativity. That’s why finding a suitable but affordable location is often a top priority for new business owners.
But exactly how much should a startup pay for an office or coworking space? Ideally, the minimal amount, as they typically have other expenses such as labor, licenses, equipment, and more.
In Novel Coworking’s first post for the year, we’ll cover what every entrepreneur should know about paying for their startup’s office space.
How much does it cost to rent office space?
Since every location’s office market and vacancy rates are different, there is no single answer for how much office space rent costs. Instead, there are a number of factors that affect the price, including location, workspace type, and additional services and amenities.
As with any other commercial real estate, the value of the space is largely dependent on location. Metro areas like New York charge substantially higher monthly rent per square foot than a city like Seattle. According to thesquarefoot, San Francisco is among the most costly cities (approximately $65.16 per sqft), while Atlanta is the most affordable (approximately $20.97 per sqft).
Average Office Space Rent per Square Foot by City
|City||Dollar Price per Square Foot||Novel Coworking Building|
|Washington, DC||$595||Dupont Circle|
|Raleigh, North Carolina||$290|
|Denver, Colorado||$284||16th Street, Trinity Place|
|Dallas, Texas||$271||Katy Building|
|Chicago, Illinois||$255||River North (Superior), River North (Huron), The Loop, Wacker, West Loop|
|Nashville, Tennessee||$217||5th Avenue|
|Salt Lake City, Utah||$187|
|Charlotte, North Carolina||$177||Uptown|
|St. Louis, Missouri||$168|
|Minneapolis, Minnesota||$158||LaSalle Building|
|Kansas City, Missouri||$152||Kessler Building|
|Pittsburgh, Pennsylvania||$140||Golden Triangle|
|Milwaukee, Wisconsin||$100||Cathedral Square|
|Columbus, Ohio||$61||Hooper Building|
Another consideration to be made is the type of workspace your business will need. For sole proprietorships or small teams, a single office room may be enough to accommodate the company, at least at the start. For much larger businesses or rapidly-growing startups, an office suite may be more appropriate.
Finally, startups must also factor in the additional expenses tied to office spaces, which may include a reception desk, maintenance and cleaning staff, mail delivery service, Internet, and parking space. Fortunately, when business owners rent with Novel Coworking, their offices come fully furnished with fiber internet and WiFi, as well as many on-site amenities. The all-inclusive pricing covers the little things that business owners may overlook, such as mail service, security, and utilities.
How to calculate the optimal office space cost
You may be curious to learn how much of your business’s revenue should be allocated to rent. Here are the prices you can expect to pay based on Novel Coworking’s own offerings.
|Office Space Type||Price per employee per month|
|Virtual Office||$59 – $100|
|Coworking environment, or Dedicated Desk||$100 – $250|
|Private office or class B office building||$300 – $500|
Typically, you’ll need to first consider how much space you need per employee, and then whether you’ll pay monthly or yearly. From there, you simply multiply the square footage (space) by the cost per square foot (price) and then by 12 (months).
Where do I find office space for rent?
When you’re ready to make the jump and rent office space for your business, Novel Coworking has your back. We offer beautifully designed spaces in major cities at competitive rates. Each location comes with a community manager and on-site staff, as well as useful amenities and services such as hi-speed Wi-Fi, a private conference room, a fully-stocked kitchenette, beer on tap, an espresso machine, and much more. Since these amenities are provided, you can avoid the additional costs that can come with renting a traditional office space.
Our office spaces come fully-furnished with enough room for your equipment and your team. Prices for office spaces start at just $299 per month.
For larger businesses, our office suites can accommodate teams of 10 – 100 people. Prices for office suites start at $2,999 per month.
And for freelancers or solo entrepreneurs who don’t need a private room, our coworking space is all you need to get started. Our coworking spaces start at just $99 per month.
Curious to learn if there’s a Novel Coworking in your area? Visit our ever-growing list of locations today to learn more. You’re one step closer to finding the perfect space for your business.