Having a small, dedicated office space outside of your home can make a significant difference in your company’s overall productivity and growth. Here’s a primer on why you should rent a small office space, how to navigate the rental process, and the key question: “How much does it cost to rent a small office space?” Simply keep reading to learn more about this wise business decision.
Why rent a small office space?
To begin with, having an office space away from home is a huge advantage when it comes to avoiding distraction. If you’re like most people, your home isn’t always a peaceful haven. Instead, you may have roommates, pets, children, and other people competing for your attention or making distracting noises. Plus, general messes can be a major distraction in and of themselves, which isn’t always easy to avoid if you’re as busy as the average person. Being able to get away to an office space that exists solely for work can make all the difference (although, as much as we hate to say it, it won’t address the ultimate distraction, the internet — that’s all about willpower).
Another advantage of having an office space is that it aids in the maintenance of work-life balance, which is critical to overall quality of life. When you make your home your workspace, you create a clear separation between the time you’re supposed to be working and the time you’re supposed to be taking care of personal matters or simply relaxing and unwinding.
This is another area where the internet has had a significant impact — it has made working from home a viable option in many cases, making it far more convenient and accessible for many people. This, however, means that you are more likely to be drawn back into work when you are not supposed to be working. With an office space, you can create a clear division: devote your home time to personal matters, and your work time to professional matters. This arrangement will most likely make your family happier, and it will be better for your mental health.
Not to mention that an office space is ideal for holding meetings. In general, meeting coworkers, collaborators, and clients in a real office is far more professional than meeting at your home or in public places such as restaurants. This will portray your company in the best light, allowing you and your brand to project an image of competence and trustworthiness.
Where to Rent Cheap Office Spaces in the US?
In the second quarter of 2020, the average price per square foot for US offices was slightly more than $35. Retail space averaged $18.09 per square foot, while industrial space cost just under $8 per square foot. However, average prices vary significantly depending on location and real estate class. Here’s a rundown of average commercial rates in major US cities:
- New York: The average gross rate for metro New York offices is $81 per square foot per year. Industrial space costs an average of $19 per square foot per year.
- Los Angeles: $44 per square foot per year for metropolitan offices and $11 per square foot per year for industrial premises.
- Miami: CBD offices in the same price range as Los Angeles, but slightly lower for industrial space ($8 / sq ft / year).
- Boston: $39 per square foot per year for metro offices, increasing to $80 in Cambridge. Industrial properties cost an average of $10 per square foot per year.
- Philadelphia: $36 per square foot per year for city center offices, $27 per square foot per year for suburban space, and $6 per square foot per year for industrial properties.
- Atlanta: Offices with a rate of $35 in Downtown Atlanta cost slightly less than $30 per square foot per year. Industrial space costs an average of $5 per square foot per year.
- Chicago: Approximately $33 per square foot per year for office space, with averages exceeding $40 in The Loop. Industrial properties cost an average of $6 per square foot per year.
- Dallas and other Texas urban centers: between $25 and $30 per square foot per year, whereas industrial rates are less than $5.
Renting a Small Office vs Co-working Spaces
Renting an office space in the US can cost thousands of dollars, not including the amenities, utilities, and other nuances you have to pay for as well. Commercial space is expensive, hence a lot of businesses and companies are turning to flexible office solutions, such as shared desks, hot desks, and dedicated office space to save on real estate budget. These options are much more cost-effective and provide flexibility for organizations in these difficult times.
For instance, WeWork’s Single Private Office in New York costs around $1,400-$2,100/ month while the same option costs $450-$1,200/ mo in The Yard. An office space is much more expensive than that. Plus, you don’t have to worry about other amenities because they will be provided for you.
Enterprise software development experience. More recently in positions including CTO, Lead Developer and Head of Product in Australia. Deep expertise in property and legal technology in Australia with a specialty in lead generation and tech scalability across Asia-Pacific.