In 2023, DC isn’t exactly known for its affordability.
As rental and house prices continue to spike, another monthly check that can hurt many is the cost of office space. For founders and business leaders, it’s an ongoing conversation as folks decide whether to renew leases, look for a bigger space or choose between IRL and remote work. And it’s especially pertinent as downtown redevelopment plans push forward.
But, according to a new study, DC does have a more affordable option available.
Coworkingcafe.com, an affiliate of California software company Yardi, just released a report detailing the cost of traditional office space versus coworking. And in DC, it found that coworking is 53% less expensive than traditional office leases.
The study compared costs over one year for a team of 10, based on the average price of dedicated desk packages at coworking spots compared to office leases of 2,000 square feet. In DC, the average cost for coworking space was $49,464 annually compared to $104,670 for office space — a 52.7% price difference. The study took a look a 146 cities in total, and DC’s coworking cost savings were 12th in the country.
Coworkingcafe.com did not immediately respond to a request for comment on the study’s findings and methodology.
DC wasn’t the only local city to crack the top 20 in savings, either. Office space users can also save in Tysons, Virginia, according to the same methodology. The average coworking space cost in Tysons was $42,120 annually compared to $91,827 for offices, which is a 54.1% discount for leasers.
The study noted that not everyone wants desk subscriptions or signs one-year leases, and both private office subscriptions and multi-year leases can provide discounts not accounted for. It also didn’t include the costs of furniture or cleaning that might come with an office space.
As leadership moves forward, the study’s authors think coworking is the best solution for the world we live in right now.
“The demand for workspace flexibility is here to stay — at least for now — and companies will remain incentivized to diversify their office assets and be open to more adaptable solutions,” the study reads. “And it shouldn’t be difficult to stay open as long as shared amenities make coworking prices so appealing for small companies.”
Knowledge is power!
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