When looking for office space there are multiple things you have to keep in mind when comparing. It’s easy to forget all the hidden costs and risks that come with renting a traditional office from a building owner.
For a traditional office you pay the landlord base rent. This is usually the number advertised.
What’s not clear is that almost always in addition you need to pay..
– Real estate tax
And sometimes other fees related to garbage collection, water and sewage.
Let’s take a real world example
|Location||Stockholm – Norrmalm|
|Advertised rent||75000 per month|
Now we add the “hidden” extra fees.
|Base rent||75000 per month|
|Real estate tax||6763 per month|
|Heating/Cooling||1875 per month|
|Electricity||750 per month|
|=||84388 per month|
Thats almost 10 000 in added fees
To run your own office you need services like Internet Access, a Printer, a Coffee Machine, Cleaning and Security. Let’s use the example above and add costs for these services.
|Internet||2000 per month|
|Printer||1000 per month|
|Coffee||1500 per month|
|Cleaning||6000 per month|
|Security||1500 per month|
|=||12 000 per month|
Your 75k a month office is now 96k
The Real Size
Your employees need space to chill, eat, fika and have meetings. They need access to bathrooms and perhaps a shower. This means that the space dedicated for “pure work” shrinks dramatically.
In the above example you can expect to fit 12-15 people into the 150m2.
The Big Deal
Lease time, deposits and uncertainty is usually the scariest part of signing a lease for an office.
Most traditional landlords lock you into 3-5 year contracts, quarterly rents and deposits of up to 6 months.
For a Startup or Scaleup this is a real tough decision.
Will the 150m2 be enough for three years?
What if we have to expand?
What if we need to scale the business down?
Apples and Oranges
It’s easy to look at a quote for a private office in a coworking space and directly compare it to a traditional office. But as you have learned by now there’s a lot you need to consider when comparing costs.
At Embassy House everything is included in whatever you are quoted.
Coffee, Internet, Printers, Cleaning and Security.
You only pay for the “pure work” space; the cost of meeting & conference rooms, chill areas, lounged and bathrooms are shared bringing costs down.
150m2 at Embassy House can comfortably seat 30 people, so perhaps you don’t need to go that big.
The BIG case for Coworking
At Embassy we try to create an environment conducive to socializing. A great and effortless place to network, meet new friends and build relationships.
We want to help you create a space where your coworkers truly love to be. No extra charge.
Unless you have a big pot of gold and pretty much know exactly where you will be in 2-3 years; Coworking at Embassy House is a no brainer.
It’s cheaper. The risks are lower. Scaling up or down is simple.
.. and most importantly. It’s a lot more fun!