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Coworking: The Cost of Convenience

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icon_Follow_en_US Coworking: The Cost of Convenience

Coworking companies have been experiencing explosive growth around the world this year. In NYC, they’ve been the fastest growing occupier of office space. Interestingly, I’ve been working with more and more companies who have matured out of coworking space or just looking for more value than what coworking spaces offer.

While having a furnished office, free beer, and not requiring long term commitments certainly is appealing, I’m curious whether founders have really weighed out the cost of the convenience.

For example: If a company in NYC leased coworking space at $150-180/ RSF for a small room (40 square feet per person) they could get their own much larger space (150 square feet per person)at $50- 60/ RSF all in. Over a 3 year period that equates to 1 year of rent! So, if a company grows out of their space in 2 years, if they subleased it for $1/ RSF then they’d still be better off than leasing at a coworking space.

 

cowork-infographic-final-01 Coworking: The Cost of Convenience

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Jack Cohen

Jack Cohen has over 15 years of industry experience developing and implementing real estate strategies for clients in Manhattan and throughout the United States. Prior to founding Spaces Commercial Real Estate, Jack was a Managing Director at Colliers International for 3 years and a Director at Cushman & Wakefield for 9 years. Jack’s forward thinking has engineered some of Manhattan’s most unique and difficult deals including the repositioning and leasing of 636 11th Avenue, a 564,000 RSF warehouse to office conversion, which was awarded real estates highest honor- REBNY’s Henry Hart Rice Most Ingenious Deal of the Year Award. Jack is a graduate of Rutgers University School of Business where he majored in Economics and Business Management. He is a member of the Real Estate Board of New York, the executive committee of American Israel Public Affairs Committee (AIPAC), and the Board of Education of Keter Torah, his childrens’ school. Jack lives on the Jersey Shore with his wife and three children.