Is Coworking More Affordable Than a Traditional Lease?
Coworking has become increasingly popular amongst New York City prospective tenants, who are looking for their ideal space. The critics of coworking typically point out how when harsh economic times come underway companies become more expense orientated and examine their balance sheets more thoroughly. What they find is that they are paying more for the same amount of space when they choose coworking. Traditional leases usually cost less for the same amount of space than do coworking solutions. In this way, the company will save money on what tends to be the largest expense for businesses, their lease.
The supporters of coworking will then point out that companies may actually gravitate towards coworking solutions during harsh economic times because of the flexibility in lease agreements that arise from coworking in NYC. All said and done, both sides make a compelling case. In order to set up shop in a coworking space there is usually a premium to pay. That being said, traditional leases may require more commitment which companies may not want to partake in.
To answer the question of whether or not coworking is more affordable than traditional leases, one must look at a number of factors. First, if a business is comfortable committing to a multi-year lease instead of settling for a flexible, more expensive, month to month coworking space. This is wholly dependent on the unique circumstances of individual company’s. Tenant brokers can make the decision more clear by showcasing all available options.