How Much Does a Coworking Space Cost?
The cost of a coworking space varies depending on the location, amenities offered and membership plans available. Desks can range from $50 to $500 dollars per month, while conference rooms are often rented by the hour or day.
Monthly memberships range from $100 to $1,000, with many coworking spaces offering multiple membership plans.
Now, let’s dive into the factors contributing to the various coworking costs.
7 Factors Contributing to Cost of Coworking Space in 2022.
Coworking spaces have become a hot topic in the past couple of years, especially if you're an entrepreneur who wants a place to call home. Every person looking for a shared office becomes a potential customer. If you're considering the idea to set up your own coworking space, your decision is right on time. But before you do, let's get down to business and discuss major factors contributing to the increasing cost of coworking space in 2022.
1. Type of Coworking Membership.
Some spaces offer multiple tiers of membership based on how many days per month you want to go into the office.
For example, at WeWork, you can choose from five membership types:
- Hot Desk ($220/month)
- Dedicated Desk ($350/month)
- Private Office (price varies by location and number of desks in your private office)
- Custom Office (for companies with over 250 employees) and Enterprise (for companies with custom needs).
At Workbar in Boston, there are four tiers:
- Coworking ($50/day Pass with no contract)
- Community Member ($349/month – includes one free day pass every month + 10% off events)
- Resident Member ($499/month – includes unlimited access to all locations + 15% off events)
- Business Member (price varies by location).
If you know that you work best when working in an office every day and don’t need flexibility, it makes sense to sign up for a more expensive tier. But if you know that you will be working remotely from home more often than not and just need a place to go once or twice per week so as not to drive your family crazy, then it makes more sense for you to buy cheaper passes as needed.
Monthly Membership Fee:
Many coworking spaces allow you to purchase a monthly membership for access to the facility on a daily basis. Standard membership includes all of the benefits of being a member of the workspace, such as the use of meeting rooms, free coffee and tea, internet access, and participation in community events. Typically, memberships are paid on a month-to-month basis by direct debit from your bank account or credit card or by cash payment at the beginning of each month.
If you need to work away from home or your office for just one day, you can probably pay for only that day without signing up for a membership. This is often called “drop-in” pricing (for example: $20 per drop-in).
Often this gives you access to the same amenities that are offered as part of a standard membership but only lasts for 24 hours once used. Most daily passes cannot be purchased online (though, this is starting to change)—you must buy them when you arrive at the space (usually upon checking in with front desk staff).
Payment is usually made by cash or credit card upon purchase but sometimes they can be purchased ahead of time online. You may be required to provide identification or sign an agreement before buying a daily pass so it’s worth calling ahead if possible before visiting the space. In some rare cases—and usually with smaller coworking spaces—it may be necessary to schedule your visit rather than simply stopping by on any given day as there could be more people than seats available at any one time if it becomes very busy in peak times—especially during lunchtimes and after work hours when people go there straight from their normal jobs!
Some coworking spaces will offer monthly passes that allow you to use their facilities for a limited number of days.
2. Size of Space Needed.
The size of your coworking space can also affect the price. In general, smaller spaces tend to be more exclusive and cost more than larger spaces.
However, since larger spaces need to make more money to cover overhead costs because they serve a greater number of people, prices for bigger spaces may actually be higher as well.
In addition to the size of your workspace, there are other factors that can affect how much it will cost you.
3. Location of the Coworking Space.
The location of a coworking space can influence the price per desk in several ways:
- Cost of real estate in the area (rent)
- Amount and quality of available space
- Competition in the area
- Size of coworking market in the area
- Quality of life amenities (restaurants, coffee shops, bars, parks)
4. Length of Membership Agreement.
While there are many factors that affect pricing, one of the most significant is membership agreement length.
Monthly memberships offer flexibility for those who are unsure about the timing of their need for coworking space. This flexibility can be appealing to some types of members. However, monthly agreements can also be more expensive per month than annual agreements.
On the other hand, annual contracts offer ease and simplicity especially when it comes to billing. While annual agreements may not be appealing to everyone, they can provide a cost savings benefit that makes them attractive to others.
In either case, you'll want to understand your needs and what would make you most comfortable when it comes to a membership agreement length.
5. Coworking Amenities.
Coworking spaces are not your typical office space. They offer a variety of amenities to make the experience more enjoyable for members and guests. In addition to internet access, many coworking spaces provide:
- Free coffee
- Kitchens with refrigerators, microwaves, sinks, and dishware
- Meeting rooms
- Shared resources such as mailing supplies or printers
Amenities vary by location and cost extra when they're not included in a membership (typically they're only available with an all-access membership). So, when choosing a coworking space, it’s important to think about which types of amenities are important to you and your employees.
3 Tips for Negotiating Cost of Coworking Space in 2022.
If you're still new to the coworking business, you might think that your overhead cost can't be negotiated. But this isn't the case — here are three tips for negotiating cost of coworking space in 2022:
1. Do Your Research
The best way to start is by looking up the coworking space you want. You’ll want to know about the membership options and features. The best way to do this is by making sure that you see everything that your coworking space has to offer and what other offices might have to offer as well.
You can also look online at reviews of the specific coworking space and check out what they have on social media. Make sure that you’re checking on their website, review sites, and social media channels for any discount opportunities or coupons as well!
It’s a good idea to be aware of what other coworking spaces around you offer in terms of membership type, price points, amenities, etc., too. This will help you understand how your office stacks up against its competitors and if there are any additional perks that may be available at another office that aren't at yours (and vice versa).
2. Negotiate at the Right Time.
It can be helpful to negotiate your coworking space membership costs when the space is not busy.
If a coworking space is underutilized, its owners may be more willing to give you a discount because they want you to use the space and bring in revenue for them. An underutilized space is losing money—and you can use this fact to your advantage by proposing a lower price.
Negotiating during times of peak demand. If there are many people who want to join or continue using the coworking space, its owners will have little incentive to negotiate costs with you—so it’s best for you to wait until the demand for their services abates.
Negotiate after becoming an established member (or regular customer). It's typically easier for any business owner to give discounts and special pricing terms once they know that a customer is likely going to stick around for awhile—the longer you do business with them, the better your chances of getting discounts from that business owner.
3. Just Ask for a Discount.
Don't be afraid to ask for a discount.
People tend to think it's rude or impolite to negotiate, but that's not the case at all! It's a salesperson's job to negotiate with you. And if the coworking space isn't willing to give you any wiggle room in terms of price or value, you might want to consider going somewhere else. If this is your preferred choice and location, give it some thought as to why that is - maybe they offer something others don't or are more conveniently located than other spaces - and make that part of your request for a better deal.
4. Pay in Advance.
If you offer to pay in full in advance, you’ll likely have negotiating power because you’re providing them with guaranteed cash up front, rather than the cowokrign space having to wait monthly for checks to be cashed.
Summary of Costs to Rent a Coworking Space in 2022.
The future of coworking is bright. There are more and more people in the world today than ever interested in working from home, from their own computers, to make money through freelancing.
Coworking spaces provide the necessary workspace to help these individuals stay on track. The future is wide open as to what options will be offered when it comes to renting a space. Take advantage of the variety of options you have today, as time goes on this list may grow—and some may close down entirely!