The Economic Benefits of A Shared Office Space

Shared office spaces have soared in popularity in the past 5 years. So much, in fact, that even large corporations have started to embrace the shared office trend and are now using it as a real estate strategy.

One of the main reasons why companies of all sizes, as well as entrepreneurs and freelancers, are opting for this type of work space is the savings that these spaces represent. The main idea behind shared office space is that, well, it is shared; which means that all resources are shared, therefore the costs are split between all the users.

Instead of having to sign long-term leases for office space, shared work-spaces allow for companies and individuals to sign short-term contracts only of the amount of space that they need. This eliminates extra space that often comes at a cost and allows the tenant (work-space operator) to maximize occupancy and reduce costs.

Additionally, shared offices were created with a plug and play mentality, meaning that those who use shared offices need not think about utilities like electricity, water, waste management, HVAC, janitor services, and the like. The cost of a shared office membership is all-inclusive, saving companies and individuals money, especially administrative costs, as well as time.

Other than the traditional utilities mentioned above, one of the main savings associated with shared office is technology infrastructure. Whether you are a solopreneur, founder of a startup, or manager of a large company, you won’t have the necessity to invest in getting all of the IT equipment required to run an office: Ethernet and WIFI, printers and ink, audiovisual equipment for meeting rooms, VoIP, and the like.

Similarly, companies save a significant amount in design and fit out by opting for a shared office. This reduces the hassle involved with picking the right furniture, the right light bulbs, the right materials to decorate the space, and the like.  Another cost, often overlooked, is the provision of coffee, tea, and water in the workplace. The same goes for maintenance products and overall building management.

Furthermore, starting 2019, shared offices will also represent, in some way, large savings for companies, as the new lease accounting standards come into effect. This new standard will require companies to show long or new leases on their balance sheets; by using shared offices, the balance sheets of companies will not be affected, as the IASB and FASB exempt leases from under 12 months from the provision.

Davinci Meeting Rooms and shared work-space

Davinci Meeting Rooms is a great resource for shared office space all around the globe. You can browse our available shared office spaces to find locations near you. Or, if you are traveling, you can even find Davinci shared work spaces around the world where you can set up shop on a temporary basis. To learn more, contact us now!

About Cecilia Amador

Cecilia Amador is a writer and content strategist based in Guatemala City. She's been writing about coworking, virtual offices, and business centers since 2015 and she is currently getting a Masters Degree in Innovation from The Pontifical Catholic University of Chile.