How Much Does it Cost to Start a Coworking Space in 2024?

UPDATED with 2024 numbers

One of the number one questions we get from new operators is, how much does it cost to open a coworking space?

Because costs can vary so dramatically, it is nearly impossible to provide a straightforward answer.

With that being said, we put together this guide to help you determine the costs you’ll need to consider when starting your coworking space.

It’s an article based on our 10+ years of experience in the flex space industry, including knowledge from our CEO who started his first coworking space in 2011. 

By the end of this article, you’ll have a better idea of how much you can expect to pay in opening your first coworking space. Let’s dive in!

How much does it cost to start a coworking space?

The average cost to open a coworking space based on 2024 data is around $88,000 USD. However, this depends on a number of factors, from where you live to how big your space is.

Take Alex Hillman for example. It cost him just under $15,000 USD to open his first coworking space, Indy Hall, in Philadelphia in the early 2000s. When he expanded to a 4,500 square foot location, it cost him roughly $45,000. This does not include recurring operating costs.

How much capital do you need to start a coworking space?

Up to $100,000 in capital seems to be acceptable to launch a coworking space based on this article. This capital covers all upfront expenses including the property, interior design, any housekeeping pieces, business operations set-up, technology, and other electronics. 

This number is just an estimate – many spaces have opened with much less capital (and others with much more!).

What costs will I need to consider when starting a coworking space?

1. The physical space

The most important and most expensive cost of starting a coworking space is the space itself. The cost will depend on the:

• City
• Location
• Size of space
• Age of building
• Renting vs. buying
• Renovations needed

According to the June 2024 National Office Report by CommercialEdge, the average office listing in the United States is just under $32 per square foot (that’s $6 less than this time in 2023). Different cities have different costs, with San Francisco listing at $61 per square foot and Detroit close to $22 (note this is the listing price and not the trading price).

One important question to consider at this stage is whether you want to buy or rent your space. Most people choose to rent or lease their coworking space in the beginning due to affordability. They may consider a management agreement with their landlord that works favorably for both parties. 

Buying a space will be much more expensive up front, but will give you more control over your building. Many space owners prefer to own their building.

Estimated cost: $8,000 a month for a 3,000 square foot space + up to $24,000 for a deposit ($32,000 total)

2. Insurance

Obtaining insurance coverage for your coworking space helps protect you, your business, and your members. According to Zensurance The average cost of property insurance for a small business owner is between $500 and $1,000 a year.

You’ll also want to consider coworking space insurance, insurance coverage specific to coworking spaces and your members. It can start for as little as $25 a month but can increase from there.

Estimated cost: Up to $83 + $25/mo, for a total of $107

3. Utilities and internet installation

According to Starter Story, the average cost of utilities in commercial spaces in the United States is $2.10 per square foot. For a 3,000 square foot coworking space, this would equate to about $6,300 a month.

Having reliable, high speed internet is perhaps the most important aspect of operating a coworking business. If your internet is unreliable, people will not want to work in your space.

On top of your monthly utility expenses, you’ll also need to consider any expenses related to internet and network installation. According to Forbes, the average cost is just under $4,000 (one-time fee) for a hardwired internet installation.

4. Furniture

Furniture in a coworking space typically includes desks, chairs, tables, and other seating areas.

There are many budget-friendly ways of getting furniture for your coworking space whether that’s by thrifting, donations, Craigslist, or IKEA. 

If you want to outfit your space in all new furniture, you can easily pay $10,000 for a single executive desk. e-architect estimates the cost of office furniture to be up to $1,500 an employee.

According to this estimate from Chipman Relocation and Logistics however, you can expect to pay around $21,500 for a 2,500 square foot space, for new mid-range furniture.  

Estimated cost: Roughly $25,000 for a 3,000 sq ft space

5. Decor and design

When it comes to interior design for your coworking space, the possibilities are endless. You can create a beautiful space with:

• Simple artwork or wall stickers
• A whiteboard with custom drawings from your staff
• Plants
• A rug or pillows for a few of your chairs
• Custom lighting

We recommend between $1,000 and $5,000 to start for plants, art, and other elements to make the space feel at home.

Estimated cost: $3,000

6. Housekeeping items

Operating a coworking space is like running a hotel. You’ll want to supply all of the miscellaneous housekeeping items that someone will need including:

• Hand soap
• Dish soap
• Toilet paper
• Paper towels
• Cleaning supplies

You can estimate spending about $200 on housekeeping items and cleaning supplies, and around $50 a month going forward to upkeep supplies. 

Estimated cost: $200

7. Coffee, tea, or snacks

Plan to budget around $15 a month per member for coffee, depending on the quality of the coffee you provide and the size of your community.

Offering snacks can be a greater expense, up to $2.50 a day per member. We often see clients charge for snacks to create an additional revenue stream and recoup their costs.

Estimated cost: $450 based on 30 members

8. Office Supplies

It’s a good idea to keep some basic office supplies on hand like:

• Pens
• Pencils
• Paper
• Notebooks
• Stapler
• 3-hole punch

Similar to snacks, we often see coworking owners and operators charge for larger office supply items (notebooks) while others are free to use in the space (pens). Budget about $25-$50 a month for these supplies.

You may want to set up a printing system in your space and charge people to use the printer, creating an additional stream of revenue for your business.

If you opt for a printer, you’ll be paying for the printer, ink, ongoing maintenance, and a print management system like ezeep. This can cost anywhere between $900-$3,000.

Estimated cost: $1,000

9. A website

The cost of creating a website will depend on whether you want to do it yourself via a service like SquareSpace or hire a freelance developer to do it for you. 

If working with a freelance website developer, you can expect to pay between $2,000 and $9,000 for a small website (less than 20 pages) according to Arka Softwares.

Then you’ll have the ongoing costs of operating your site which can be anywhere from $10 – $40 a month depending on the servers you choose to use.

Estimated cost: $5,000

10. Staff

It’s possible to open without hiring any staff for your coworking space. If you plan on scaling, you will likely need to onboard more people onto your team, so it is important to keep this cost in mind as you grow.

Let’s assume you decide to hire a part-time community manager to get your space up and running. You’ll expect to pay around $400 to $1,000 a week depending on hours worked and wage.

Estimated cost: $2,400 for a part-time community manager

11. Coworking space software

Coworking space software can help you automate resource bookings, optimize the use of your space, grow your business revenue, and engage your community.

Most software is priced as a monthly or annual subscription starting at around $200/mo. At Optix, we charge a monthly subscription based on number of members and number of locations. The pricing is designed to be flexible and scale with you as you grow.

Learn how Optix can help you elevate your coworking experience. 

Estimated cost: $200

12. Access control system

An access control system helps secure your space and automate access. It typically includes the cost of the hardware itself, installation, fob keys, and annual subscription fees. Here is what Kisi estimates the cost of their access control system to be:

• Locking hardware: $20-$900
• Access control accessories: $10-$500
• Door Reader: $80-$1,200
• Door Controller: $180-$3,500
• Software License or Maintenance Cost: $0-$50 per door per month

Taking the average of the range of costs above, you can put the price of an access control system like Kisi on three doors at roughly $3,060. This does not include the cost of installation.

Estimated cost: $3,060

13. Security system

You can easily pick up a security camera at Best Buy or on Amazon for under $100. These systems sync to your phone and will notify you if someone unauthorized is accessing your space. You can also invest in an installed security system for 10x that cost.

Ackerman Security gives an average cost of $2,000 for a professional commercial security system including hardware, installation, and monthly operating costs.

Estimated cost: $2,000

14. Video conferencing tools

Many operators choose to provide video conferencing tools as a service to their members. This could include:

• Television
• Webcam
• Speakers
• Zoom subscription

The cost of video conferencing tools can start at around $2,500 with the largest investment being in the television and webcam you choose.

Estimated cost: $2,500

15. Miscellaneous hardware

Typically, we see operators provide members with as much tech as they can to support their daily needs, including:

• Computer chargers – PC and Mac
• Phone chargers – Apple and Android
• HDMI cables
• Monitors

The cost depends on what you choose to offer, the quality of those choices, as well as the volume. Starter Story estimates the cost of office equipment to be anywhere between $500 to $5,000 a year per employee.

Given that not every member will have their own equipment, you could take the average cost of the items you want to buy and price it out accordingly. 

Estimated cost: $1,200

The cost of opening a coworking space depends on many factors

Using the averages provided by various outlets, the cost of starting our hypothetical coworking space was around $88,000 USD. Take this information as a very basic average to build off of.

It’s entirely possible to open a barebones coworking space at a relatively low upfront cost. However, it’s important to remember that a coworking space is more than a physical space – it is a hospitality service with your members at the center of the experience.

It really is the little things that help build a coworking community and make a place truly feel like a home – like warm lighting, beautiful plants, and the best coffee in the neighborhood.

Just getting started with a space? Learn how Optix can help you grow your business over time.