Coworking has become increasingly more prevalent for companies of all sizes.
How do you know if it is the right financial move for your business? While the option doesn’t come without its own list of cons, coworking does provide growing companies with flexibility that was traditionally nonexistent.
Depending on the company size, coworking allows for various term options from month-to-month, one-year or even 30-90 days with the ability to add or subtract square footage as companies grow or contract operations.
In many cases coworking also provides occupiers with the option to test out new markets prior to making the decision to invest in opening a permanent location.
Coworking allows companies to take that risk off their balance sheet by giving it to a third party.
While coworking may not be the cheapest option – averaging $500-$600 per desk – it does significantly alleviate many of the up-front expenses.
The short-term leases made available by coworking spaces help companies avoid this new practice and allow themselves more flexibility to borrow.