{"id":17747,"date":"2018-08-27T19:05:15","date_gmt":"2018-08-27T16:05:15","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=17747"},"modified":"2026-04-07T15:21:32","modified_gmt":"2026-04-07T12:21:32","slug":"much-cost-open-run-coworking-space","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/much-cost-open-run-coworking-space\/","title":{"rendered":"How Much Does it Cost To Open and Run a Coworking Space?"},"content":{"rendered":"

Coworking spaces have soared in popularity in recent times. From freelancers to startups and established corporations, they provide a shared location for workers to meet, collaborate and rent a desk or office on a flexible basis.<\/p>\n

There are now more than 14,000 coworking spaces worldwide and research reveals shared workspaces<\/a> have grown by 200% over the last five years. This data might suggest that opening a coworking space is a sensible business move. After all, there is clear demand and more than five million people<\/a> are predicted to use some 30,432 coworking spaces by the year 2022.<\/p>\n

However, research reveals<\/a> that only 40% of coworking spaces are profitable, although this proportion has increased over the last four years. Part of the reason for this is that coworking is a relatively new market with nearly one-third of spaces opening in the last 12 months, and most startups take some time to turn a profit.<\/p>\n

The secret to a healthy bottom line can often depend on economies of scale, as some 75% of coworking spaces with 200 members or more are in the black, according to figures from the 2017 Global Coworking Survey.<\/p>\n

While this is all well and good, how much does it actually cost to set up and run a coworking space? Let\u2019s break the figures down now:<\/p>\n

Finding a space<\/strong><\/h2>\n

Unless you own some vacant commercial property<\/a>, then it will probably be necessary to buy or rent some real estate in order to open a coworking space. Even at this early stage, it\u2019s vital to understand what you require in terms of the layout, location, and amenities.<\/p>\n

Naturally, the cost of real estate ultimately depends on the size and location of your setup. A good rule of thumb is to\u00a0plan for approximately 100 square feet of floor space per member, but if you want to integrate more private offices and meeting rooms into the space, you\u2019ll need to be willing to invest more. Alternatively, if you\u2019re going to focus mainly on hot-desking and desk rentals, it\u2019s possible to spend a little less per square foot.<\/p>\n

Research reveals<\/a> the cost of office space fluctuates dramatically depending on the location. For $5,000 per month, you can get 2,861 square feet of office space in Atlanta<\/a>, 2,599 square feet in Dallas<\/a> or 2,117 square feet in Houston<\/a>. However, in New York City<\/a> you\u2019ll only get 811 square feet of space, in San Francisco<\/a> you\u2019ll get 921 square feet and in Washington, D.C.<\/a>, you\u2019ll get 1,140 square feet of office space.<\/p>\n

Fitting out the space<\/h2>\n

The next step is to deck out the space with all the furnishings, always bearing in mind the needs of your prospective community.<\/p>\n

In terms of design, there are many different office layouts to choose from, but the majority of coworking spaces offer members a shared space with hot desks or rent dedicated desks, private offices, and meeting rooms.<\/p>\n

When it comes to furniture, some spaces take a low-budget approach while others spend more on luxuries such as real wood and higher quality chairs and couches. The best option really depends on the target audience and the size of their wallets.<\/p>\n

Breakout areas and other shared spaces are also popular options and it may be worth including some unconventional working environments in order to attract millennials.<\/p>\n

Developing a certain theme or look can set your space apart. For example, The Farm Soho<\/a>\u00a0is decked out in timber from an old barn in southern Missouri and the U.K.\u2019s Huckletree coworking group<\/a> stamps distinctive black and white stripes on its locations to build a consistent brand.<\/p>\n

A super-reliable wifi network is essential since poor connectivity<\/a> is the number one turnoff for coworking members. Other major expenses could include a reception area, a kitchen, and the relevant insurance policies.<\/p>\n

This post<\/a> reveals a breakdown of costs to set up a 1,800 square-foot coworking space in Philadelphia<\/a> back in 2012: $6,000 for rent (this includes the first and last monthly payments and a security deposit); $2,000 for 20 desks and chairs from IKEA; $150 for a wireless router; $500 for a one-year insurance policy; and $300 for miscellaneous things like trash cans and bags, cleaning supplies, etc.<\/p>\n

While this is a relatively small space both in terms of its footprint and its capacity of 20 people, it should give a rough approximation of the breakdown of costs.<\/p>\n

Managing the space<\/h2>\n

Operating and managing a coworking space also entails several monthly fixed and variable costs including:<\/p>\n