When considering the benefits of coworking, money isn’t usually the first thing that comes to mind. Peace of mind? Definitely. Organization? Sure. Networking? Absolutely. But saving money? Especially for aspiring entrepreneurs and new freelancers, the idea of shelling out cash every month for a fancy space can seem like an unnecessary venture. But as more research is conducted on the reality of coworking spaces vs. traditional workspaces, professionals are realizing that they can actually save money by coworking.
Instant Offices (IO) took their own data along with findings from Cushman & Wakefield to determine how much it actually costs to rent office space in a major city. The findings revealed Hong Kong as the most expensive city in the world to rent office space. No surprise, as the densely populated city was also named the most expensive housing market 7 years in a row by the Demographia International Housing Affordability Survey. But IO’s findings also showed that professionals could save three times the amount of money in Hong Kong renting a coworking space desk instead. In London, the second priciest city to rent in, the cost was two times cheaper than regular office space.
Traditional office space in Hong Kong was estimated at $27,400 a year, while in London it was about $22,600. Annual coworking costs clocked in at $7,600 and $11,900 respectively. Why is the cost of coworking a few thousand dollars cheaper in a much more expensive city? According to IO’s data, “The number of flexible workspaces in London grew 20% during 2017 with new centres opening up across the capital. This growth ensured that the market remained highly competitive, particularly compared to conventional space where vacancy rates are at an all-time low and space is at a premium.” Regardless of exact figures, the overall result is the same: A ton of money is saved every year by professionals that choose coworking.
Pay for Space, Get the Perks for Free
One can argue that renting a desk at a coworking space is more affordable because the benefits are fewer. For example, renting a desk isn’t private and you may get less actual square footage to call your own in a coworking space. This is one reason traditional offices could cost more. But these technical benefits pale in comparison to the intangible benefits of operating out of a coworking space. The networking opportunities and community, relaxing lounge areas, quiet conference space, free coffee, and stocked kitchen are all things that not only enrich your workday, but streamline the crap out of it.
Coworking spaces eliminate most of your distractions and can even provide some much-needed inspiration through events, workshops, and meetup groups. You are essentially handed an ideal environment for productivity and professional growth for the cost of only space. Not to mention, most coworking spaces have private office options with more personal space, which makes it totally interchangeable with traditional office space. In both cases, you pay for the space. But with coworking, you get the perks for free.