Office space is undoubtedly one of the most significant expenses for businesses — both big and small. In fact, a recent study revealed companies with a physical presence consider it one of their top three biggest expenses.
Are high office space costs negatively impacting your business’s profitability? Do you want to lower your rental costs without compromising the growth of your business? If your answer to both these questions was an emphatic yes, we’ve got you covered.
Read on to discover how to lower office space costs with Industrious. We’ll cover everything from factors impacting rental costs to how flexible workspace solutions can help you reduce operational expenses.
How Much Does It Cost to Rent Office Space?
Office space rental costs vary depending on the floor space occupied. In the United States, the national average cost of office space is roughly $33 per square foot, according to a Commercial Edge report.
Here are the average prices per square foot in some top cities, according to the same report:
- Manhattan, NY: $175 per square foot
- San Francisco: $204 per square foot
- Miami: $140 per square foot
- Los Angeles: $108 per square foot
- Boston: $116 per square foot
- Austin: $84 per square foot
- Seattle: $67 per square foot
However, these values are averages. Office space costs may vary greatly depending on the exact location in each region. For instance, in Miami, rental rates in Brickell are typically higher than in Downtown Miami.
Besides region, costs may also vary significantly based on office class, with classes ranging from A to C.
Class A office buildings are often new and feature exceptional finishes and extensive amenities. In contrast, class C office buildings are typically older and feature fewer amenities. Class B office spaces are a middle ground between A and C.
Here’s a breakdown of the average price per square foot by office class:
- Class A: $30–$60 per square foot
- Class B: $20–$35 per square foot
- Class C: $10–$20 per square foot
4 Factors That Impact Office Space Rental Costs
Whether you run a small enterprise or a large one, here are four factors that will impact your office space rental costs:
- Location: Prime locations in vibrant urban centers or major business districts typically command higher rental rates due to their high foot traffic and accessibility. For instance, compared to suburban areas, rental costs are higher in real estate markets in bustling cities like New York, Chicago, and Los Angeles.
- Amenities: Office spaces with desirable amenities like conference rooms and lounge areas typically cost more. Perks such as on-site parking, valet parking, fitness centers, and concierge services can drive up costs even further.
- Market demand: When many businesses are searching for office spaces, and there’s limited availability, landlords can charge higher rents for office space. For instance, commercial office space rents fell sharply during the pandemic due to the reduced demand for office space.
- Size: Office space rental costs are calculated based on the square footage of the space. Larger offices typically cost more than smaller ones.
How To Lower Office Space Costs With Industrious
Renting a traditional office space can come at a high cost, especially if you want to set up your business in a busy area in a large city. But renting office space doesn’t have to cost a fortune.
At Industrious, we provide flexible workspace solutions to help businesses reduce their operational expenses. Here are the tailored solutions we offer:
Private Offices
Private offices are designed for businesses or teams that need a secluded area that’s separate from other businesses or individuals for distraction-free work.
Generally, most traditional office spaces provide private office spaces. But here’s the catch: You’ll need to invest in office furniture and equipment if you rent a conventional office space.
You’ll also need to commit to a long-term lease, which can impact your business’s cash flow and reduce funds for other core drivers of business growth like product development, marketing, and talent acquisition.
By choosing the private office solutions Industrious offers, you’ll enjoy all the perks of having a private office minus the high initial costs of setting up.
Besides essentials like office furniture, all our private offices come with the following all-inclusive amenities:
- Daily breakfast and craft coffee
- Unlimited color printing
- Mail & packaging services
- Free, fast, and secure internet
- Office supplies
- Professional-grade cleanings
We provide private offices for teams of 1-20 people, making them ideal for solopreneurs, startups, or small businesses searching for workspaces that offer optimal privacy for focused work.
Private Suites
Private suites are similar to private offices. They are dedicated, enclosed office spaces within shared workspaces designed for companies that need private spaces for deep work.
Industrious private suites come with all the same perks as private offices. You’ll enjoy all-inclusive amenities and access to private conference rooms.
However, our private suites can accommodate larger teams of 15-plus, making them better suited for small businesses with large teams or startups experiencing exponential growth.
Coworking Spaces
With the rise of remote and hybrid work, coworking spaces have become all the rage. Nowadays, many businesses are flocking to coworking spaces, particularly startups. And with good reason.
Coworking spaces eliminate the initial costs required to start a business because they provide essential amenities like high-speed Wi-Fi and office furniture. They also eliminate the costs associated with committing to a long-term lease, allowing businesses to allocate funds toward other core business activities.
If you’re considering a coworking space, look no further! Industrious offers coworking spaces with all the essentials needed to stay productive and other perks such as on-site support. We also provide flexible membership plans that cater to various businesses. Whether you’re a freelancer looking for an on-demand workspace or a startup owner looking to access a private office or meeting room, we’ve got you covered.
While a collaborative workspace can be especially beneficial for startups and businesses looking to lower costs, it can also greatly benefit remote workers who work from home. Why? Because working from home can be incredibly lonely. In fact, a recent study revealed that one out of four workers who work from home experience daily loneliness. If you’re a remote worker exploring alternatives to working from home, a coworking space might be just what you need to reduce feelings of loneliness.
At a coworking space, you’ll get the chance to connect with other professionals from diverse backgrounds and potentially join a community of fellow business owners. Through your interactions with other professionals, you might even receive invaluable feedback about your products or services. This can enable you to refine your offerings and drive business growth.
Virtual Offices
A prestigious business address can boost your business’s credibility among potential clients and partners. But here’s the kicker: Prestigious business addresses can be cost prohibitive, especially for solopreneurs or freelancers with a lean budget.
Fortunately, you can enjoy all the benefits of having a prestigious business address without the high costs of renting a small office space with a virtual office. But what is a virtual office exactly?
Well, it’s somewhat of a middle-ground option between renting a traditional office and working remotely. A virtual office allows you to enjoy the benefits of having a conventional office without committing to a long-term lease. You can register your business at a prestigious business address and boost your business’s reputation while you continue to work from an inexpensive, convenient location like the comfort of your home.
With an Industrious virtual office, you’ll enjoy perks like mail retrieval and access to meeting rooms on demand, starting at $75/hour. So, if you need to meet recruits or clients, you won’t need to stress about finding a suitable meeting venue.
Meeting Rooms
Many traditional office spaces provide meeting rooms. But it’s unlikely you’ll hold meetings daily. That means you could waste precious floor space and resources if you rent a traditional office. Flexible workspaces offer meeting rooms on-demand, enhancing office space utilization.
Industrious offers on-demand meeting rooms that can host up to 20 individuals. Whether you need a small meeting room to discuss a confidential issue or a large one to deliver a client presentation, you’ve got options.
Best of all, our meeting rooms come with all the essentials you’ll need to hold successful meetings, including:
- Lightning fast Wi-Fi
- Audiovisual equipment
- Video conferencing equipment
- Whiteboards
- Beverages like tea, coffee, and soda
We also offer on-site support, so you won’t need to worry about your meetings running late because your guests can’t locate the meeting venue.
Reduce Business Costs With Industrious
Renting a traditional office space may come at a hefty cost. From purchasing office furniture and equipment to committing to a long-term lease, the expenses can quickly stack up. It’s no wonder there’s a spike in the demand for flexible workspaces as savvy business owners look to adopt new business models, such as the hub and spoke model, to reduce their operational costs.
With our flexible workspace solutions, you won’t have to worry about high operational costs. Instead, you can focus on what matters most: growing your business. Check out our coworking space solutions to find the perfect workspace for your business.