Office Space Cost Analysis: A Case Study
Background
A company with 6 employees evaluated office space options in Jerusalem, comparing three traditional office options against a coworking space option. Here are the results.
Key differences
Since a Coworking Space is a full service office, everything gets included in one neat monthly bill, as opposed to the traditional office space where all you get is the bare office (Assuming you don’t need to do renovations) and all other services need to be taken care of separately — and paid for separately. See table 3 for a list of these separate services. Conference space in a traditional office is often under-utilitized, resulting in additional expenses for unused space. Sharing a conference space with others, such as in a Coworking space can reduce expenses significantly. Finally, the security deposit typically required in a traditional office, must be paid in – and isn’t refundable until you leave, where a Coworking space will often apply your deposit towards rent. See table 1.
| Table 1 | All office services | Conference Space |
|---|---|---|
| Traditional Office | Not included | Regular price |
| Co-Working Space | Included | Pay as you go | 10 hours free |
Cost Comparison
| Table 2 | Total Monthly cost | Initial Investment |
| Basic Traditional Office Space | ₪10,747.05 | ₪40,895.13 |
| Traditional Office Space in Nice Building | ₪11,489.80 | ₪49,187.50 |
| Traditional Office Space in New Building | ₪14,344.80 | ₪50,200.00 |
| Coworking space | ₪10,400.00 | ₪0.00 |
Monthly cost graphic
Additional Costs
| Table 3 | Additional Monthly expenses | Initial Additional Expenses |
|---|---|---|
| Traditional Office Space |
1. Arnona 2. Electric 3. Insurance 4. Telecom 5. Coffee & Milk 6. Cleaning 7. Conference space |
1. Lawyers fee 2. RE agent fee 3. Furniture 4. Security Deposit |
| Coworking space | None | None |
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