How to Know When It’s Time to Go From Coworking Space to an Office
For growing companies, coworking spaces can become overly expensive when headcount increases significantly and many companies find it’s time to level up to their own space.
One of the clearest signs a company is ready to transition to more permanent office space is when it has outgrown its coworking space. As a general rule, companies should think about moving into a short-term lease or sublease when they have more than 75 employees.
Cost is usually the primary factor that leads companies to seek their own office space. Using average figures for coworking desks and office space square footage, at $1,000 monthly per head, a coworking space would cost $900,000 per year for a staff of 75. Comparatively, with an average asking rent of $45 per square foot per year in major U.S. markets — assuming a firm would need approximately 12,000 square feet for a staff of 75 (160 square feet per employee) — its yearly cost would be $540,000.