Cost – Co-working spaces Vs. Plug n Play Vs. Your Own Office Space

Let’s assume you are looking for an office space for your team of 20 members and you require a conference room, a reception area and a cafeteria to meet your business requirements. You have three options namely, renting in a business centre, renting the required space on a plug and play basis and taking a warm shell on rent and doing your own interiors at your own cost. The numbers for the above three options work out as follows.

Option 1: Co-working spaces

In this scenario, you take a private office with a 20 seater capacity on rent in a business centre. Your only cost is the rent for the 20 seater cabin.

Particulars

Amount (in Rs.)

Average rent for 20 workstations

180,000

Conference room hours (1 complimentary hour per workstation)

Nil

Reception facility

Nil

Cafeteria facility

Nil

Total cost per month

180,000

Initial capital cost(Refundable interest free rental security deposit)

540,000

Option 2: Plug n Play

You would require a minimum area of 3000 SFT to accommodate 20 seats, reception area, a conference room and a cafeteria.

Particulars

Amount (in Rs.)

Average rent for 3000 SFT @ 70Rs. per SFT

210,000

Building Maintenance

24000

Admin and operational expenses

80,000

Total cost per month

314,000

Initial capital cost(Refundable interest free rental security deposit)

630,000

Option 3: Take a warm shell on rent and do your own interiors

You would require a minimum area of 3000 SFT to accommodate 20 seats, reception area, a conference room and a cafeteria.

Particulars

Amount (in Rs.)

Average rent for 3000 SFT @ 45Rs. per SFT

135,000

Building Maintenance

24,000

Admin and operational expenses

80,000

Recovery of capital cost

4,05,000

Interest on Capital cost

45,000

Total cost per month

3,59,000

Initial capital cost(Capital cost@1500 per SFT + Refundable interest free rental security deposit)

49,05,000

Your company can save as much as 50% of costs by renting a private office space in a business centre as opposed to take a premises on plug n play or taking your own office space on rent.

June 1, 2018