How Much is Your Office Really Costing You?
It’s much more than the rent. Have you ever really sat down and done the math? You might really be surprised to find that the office space you rent currently is costing you far more than you think.
We asked a recent business to share their business costs with us and we were surprised to find out that there is so much more cost to renting an office than just the rent.
There are advantages to each model, but co Working space adds versatility that the traditional 3 x 3 or 5 x 5 lease cannot deliver.
Rental Flexibility
Traditional leases cannot compete with the flexible rental arrangement that comes with a. co Working space. Businesses that grow find it hard to work out how much space they will need and often in the short terms have too much space.
Tech businesses face the expansion dilemma all the time. As they grow they need more space and often in standard lease arrangements and normally this cannot be accommodated.
We will use the example of a recent tech company moving into a co Working space. They have 25 staff. They shared their analysis that included a Storage space for equipment and direct comparison from their expenses for services provided by the co Working provider.
Let’s take a look at their annual figures:
Rent $54,000.00
Rates $4,597.60
Body Corporate fees $4,219.54
Cleaning $4,200.00
Aircon service $1,500.00
Internet $23,377.00
Insurance $5,114.00
Electricity $5,036.00
Repairs $4,000.00
Office supplies, coffee $9,900.00
Furniture written off $6,000.00
Security $2,220.00
Annual cost $122,444 .00
The comparable space for this new business to operate as close as to how they did operate is:
Co Working space $94,500.00
Insurance $5,000.00
Storage space $3,600.00
Annual Cost $103,100.00
About a 16% saving.
What are some of the other savings a co Working space can deliver?
Importantly there is little comparison between fit-out quality between the old and the new. Typically, co Working spaces have new leading-edge fit-out, designed to stimulate ideas.
Less admin time dealing with security, maintenance, body corporate, bill payment and much more.
How do you put a price on flexibility? You can’t, but when you need to expand, with a co Working space you can. Equally, if times get tough you can downsize, both of these options not available to traditional leaseholders.
Younger staff like the working environment and the services provided from ‘hipster” coffee to “thinking and reflecting spaces” team-building spaces and meeting spaces that wow potential clients.
Capital Centre in Phillip is wanting to establish co Working spaces and the owners seek an operator that wants to expand into the Canberra market.
The building has:
- 1,000 SQM contiguous space, more if needed
- Quality fit-out that can be used for co Working space – save cost on startup
- High-speed internet
- Top-end HVAC systems
- Ground and underground parking
- Close to transport, food and amenities
If you want a unique business opportunity to develop co Working spaces in Canberra, there are incentives available to assist any co Working space operator.
