Coworking spaces are essential to many companies here in New York and around the globe. They provide a low cost solution to companies, especially start-ups, who need office space immediately without the commitment of signing a lease and are looking for many other added benefits. Keep reading to find out more.
Working inside of a coworking space comes with several advantages when compared to having your own office or even executive suite. When you work in a communal space, or coworking space, you have plenty of chances to network with other companies and problem solve together. Networking itself also comes with several advantages on its own, but that topic is for another day.
Another benefit of working in a coworking space is you will also share costs of the entire space with those other companies as well. You will usually pay much less per month than you would for your own executive suite, but there are several other factors you should consider before you choose which type of office space would best fit your company. You may take the option of having your own dedicated desk or the option of hot desking, where you work from an available table and just plug in your laptop. Hot desking will obviously be cheaper.
Additionally, most coworking spaces will almost always come with amenities like high speed internet and wifi which eliminates other cost that you would otherwise pay if you had your own office space. We would also like to mention that some even come with their own fully stocked pantries which come with a variety of snacks, coffee, and water to help you get through the workday.
Upon walking into a coworking, you will immediately notice the vibe is young and energetic. After walking past the reception, you might notice a few conference room and a series of tables with entrepreneurs and their employees working at tables. These tables are for those looking for a little more value. Walk a little further and you’ll notice series of offices in various sizes, some that can even hold entire companies of up to 30 employees. Employees of these companies will regularly interface with their neighbors, share ideas or stay after work to listen to a speaker or seminar. At the most famous and fast growing coworking, WeWork, you will even have the opportunity to kick back and have beers with your peers.
To recap, the benefits of coworking include:
Like anything else, coworking spaces also come with their own set of disadvantages as well. For example, sharing office space might seem like a disadvantage to you if you don’t like working closely with other people or companies. You may have highly private information. There might be regulations against sharing an office space for certain types of firms such as financial.
We also would like to point out that almost all coworking spaces also come with private conference rooms and phone booths that are designed to either meet with your team or have a private quiet conversation; but, that doesn’t mean you will always get to use those spaces if you are working there either. Since you are sharing the entire space with other companies, that means you might have to wait until another company is done using that room, or you might be forced to signup for a time that could cause you a major inconvenience.
Pricing on coworking is high, you will find that per square foot price is twice that of a regular lease and that you will pay anywhere from $700-1,200 per employee per month in NYC for example.
To recap the disadvantages are:
An executive suite is very similar compared to a coworking space and let us tell you why. Like a coworking, an executive suite facility will house many diverse companies and they will share the same address. You also won’t have to commit to a lease and you can move in right away. You will notice the greatest differences in:
The distinction is quite nuanced but let us walk you through the differences.
Like most coworking spaces, upon entry you typically be greeted by a receptionist. However, it will have the feel of typical corporate office. You might notice there are stone floors in the reception and a big corporate reception desk with receptionist taking calls and redirecting them. Upon passing the receptionist, you will see a long corridor with numerous offices. The floor will be very uniform and you will see a series of offices.
Having your own executive suite will allow you to have your own private office in a typically more corporate and professional atmosphere. You will find the furniture to be bulkier and more traditional. You will typically see ceiling tiles as opposed to exposed ceilings and you will generally notice more of the residents just minding their own business. The most famous executive suite is Regus. The global powerhouse has numerous locations around world and has been a mainstay for multinationals looking for satellite offices.
You will be paying a premium for your own private space and generally that space is only big enough to accommodate a desk or two and a few pieces of furniture. You will typically have access to conference rooms but there will be limited break out rooms and other communal areas.
All executive suites come fully furnished, but you typically will have the option of moving in your own furniture. Like a coworking, you will share the costs of the reception, receptionist, pantry and conference rooms, however,you will find that you will likely not have as close of a relationship with your neighbors. Executive suites in NYC typically run from $1,000-$3,000 per month or $500-$3,000 per person depending on how many people you want to fit in the room.
If you need to grow, it’s usually quite easy to grow in an executive suite. Offices become available all the time and you have the ability to move down the hall. To recap, executive suites provide:
As WeWork grows and expands its market share compared to executive suite operations such as Regus, the debate of whether a coworking or an executive suite will continue. If you are trying to decide what type of office space would be best for you and your company, please consider the following:
These are just a few questions you need to ask yourself before making the commitment to use a coworking space or a private office for your business and it’s important to be completely sure of yourself before making a decision; otherwise, you could wind up extremely unhappy and more importantly, the wrong decision could end up hurting your business.