This article was written by our expert who is surveying the industry and constantly updating the business plan for a coworking space.
Understanding the monthly operating costs is crucial when starting a coworking space business.
The expenses range from $8,000 to $25,000 monthly for a typical workspace, depending on size, location, and services offered. These costs include rent, utilities, staff, insurance, marketing, and various operational expenses that keep your coworking space running smoothly.
If you want to dig deeper and learn more, you can download our business plan for a coworking space. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our coworking space financial forecast.
Monthly operating costs for a coworking space typically range from $8,000 to $25,000, with rent being the largest expense at 30-40% of total costs.
Staff salaries and utilities represent the next biggest expenses, followed by insurance, marketing, and amenity costs that enhance member experience.
| Cost Category | Monthly Range | Key Details |
|---|---|---|
| Rent/Lease | $3,000 - $10,000 | Largest expense, varies significantly by location and size. Major metros cost 2-3x more than smaller cities |
| Staff Salaries & Benefits | $3,000 - $10,000 | Community manager, admin, cleaning staff. Benefits add 10-20% to base salaries |
| Utilities (All) | $1,000 - $3,000 | Electricity, water, internet, heating/cooling. Varies by season and equipment usage |
| Cleaning & Maintenance | $500 - $1,250 | Daily cleaning, quarterly deep cleaning, ongoing repairs and maintenance |
| Furniture & Equipment | $200 - $800 | Replacement fund, equipment depreciation, office supplies and amenities |
| Insurance | $25 - $200 | Property, liability, workers' compensation, and cyber security coverage |
| Marketing & Software | $405 - $1,300 | Member acquisition, booking software, digital tools, and advertising campaigns |
What is the average monthly rent or lease cost for coworking space locations?
Monthly rent for coworking spaces ranges from $3,000 to $30,000 depending on location, size, and market positioning.
In smaller cities, you can expect to pay $150-$300 per month for hot desk arrangements, $300-$700 for dedicated desks, and $800-$1,200 for private offices. Major metropolitan areas like New York, San Francisco, or London command significantly higher rates, often 2-3 times these baseline figures.
The size of your coworking space directly impacts rent costs. A typical 3,000-5,000 square foot facility in a mid-sized city averages $3,000-$10,000 monthly, while larger spaces in prime locations can reach $30,000 or more. Location within the city also matters - downtown business districts cost more than suburban areas, but offer better access to public transportation and amenities that members value.
Rent typically represents 30-40% of your total monthly operating budget for a coworking space, making it your largest single expense. When evaluating locations, factor in not just the base rent but also common area maintenance fees, property taxes, and any percentage rent clauses that increase costs as your revenue grows.
You'll find detailed market insights in our coworking space business plan, updated every quarter.
What are the typical monthly utility expenses for coworking spaces?
Utility costs for coworking spaces average $1,000-$3,000 monthly, covering electricity, water, heating, cooling, and high-speed internet.
Electricity represents the largest utility expense at $500-$1,500 per month, varying based on equipment usage, lighting, and seasonal heating or cooling needs. Coworking spaces require consistent climate control throughout business hours, and members expect reliable power for their devices and equipment.
Water costs typically range from $300-$800 monthly, influenced by the number of members, restroom facilities, kitchen areas, and any shower facilities you provide. Internet connectivity is crucial and costs $200-$500 monthly for the high-speed, reliable connections that coworking members demand for their work.
Heating and cooling expenses fluctuate seasonally but are often included in the electricity figures above. Winter heating and summer air conditioning can drive utility bills 20-30% higher during peak seasons compared to mild weather months.
Plan for utility costs to increase as your membership grows and usage intensifies throughout your coworking space.
How much should be budgeted monthly for cleaning, maintenance, and repairs?
Budget $500-$1,250 monthly for cleaning, maintenance, and repair expenses in your coworking space.
Regular cleaning services cost $300-$750 per month depending on space size and cleaning frequency. Most coworking spaces require daily cleaning of common areas, restrooms, and kitchen facilities, with quarterly deep cleaning sessions for carpets, windows, and detailed sanitization.
Ongoing maintenance and repairs average $200-$800 monthly for typical wear and tear, equipment servicing, and minor fixes. This includes HVAC maintenance, plumbing repairs, electrical work, and maintaining furniture and equipment that sees heavy daily use from multiple members.
Establish relationships with reliable cleaning services and maintenance contractors before opening your coworking space. Professional cleaning companies often offer bulk pricing for daily service contracts, while having trusted repair professionals on call prevents minor issues from becoming major disruptions to your members' work.
Set aside additional funds for unexpected repairs - coworking spaces experience higher wear and tear than traditional offices due to constant member turnover and varied usage patterns.
What are the recurring costs of furniture, equipment, and supplies for coworking spaces?
Monthly furniture, equipment, and supply costs range from $200-$800 for coworking spaces, covering replacements, depreciation, and ongoing consumables.
Furniture replacement follows a 5-7 year cycle, but coworking spaces need monthly reserves since pieces wear out individually from heavy use. Desk chairs, tables, and lounge furniture require regular replacement due to constant member rotation and varying usage patterns.
Equipment costs include printers, coffee machines, kitchen appliances, and technology hardware that requires monthly depreciation reserves of $200-$800. Printers need regular maintenance and toner replacement, while coffee machines and kitchen equipment have ongoing supply and maintenance needs.
Office supplies and consumables like paper, pens, cleaning supplies, coffee, and kitchen items typically cost $200-$500 monthly. Many coworking spaces negotiate bulk purchasing agreements to reduce these ongoing supply costs while ensuring consistent availability for members.
This is one of the strategies explained in our coworking space business plan.
What is the monthly expense for insurance coverage for coworking spaces?
Insurance premiums for coworking spaces range from $25-$200 monthly, depending on coverage types and space size.
| Insurance Type | Monthly Cost | Coverage Details |
|---|---|---|
| General Liability | $15 - $75 | Protects against member injuries, property damage claims, and basic business liability incidents in your coworking space |
| Property Insurance | $25 - $100 | Covers furniture, equipment, technology, and physical assets against theft, fire, water damage, and natural disasters |
| Workers' Compensation | $50 - $150 | Required for employees, covers medical expenses and lost wages for work-related injuries to your coworking space staff |
| Cyber Liability | $25 - $75 | Essential coverage for data breaches, network security incidents, and cyber attacks affecting member information |
| Business Interruption | $20 - $60 | Compensates for lost income if your coworking space cannot operate due to covered disasters or incidents |
| Professional Liability | $15 - $50 | Protects against claims of negligence, errors, or omissions in your coworking space management and services |
| Directors & Officers | $25 - $100 | Covers legal costs and damages from lawsuits against coworking space owners and management decisions |
How much should be allocated monthly for staff salaries, benefits, and outsourced services?
Staff costs for coworking spaces range from $3,000-$10,000 monthly, representing one of your largest operational expenses after rent.
A community manager typically earns $2,500-$4,500 monthly and serves as the primary point of contact for members, handles day-to-day operations, and maintains the coworking culture. Administrative staff for booking management, billing, and customer service adds another $1,500-$3,000 monthly to your payroll.
Benefits and payroll taxes increase base salary costs by 10-20%, including health insurance, retirement contributions, unemployment insurance, and social security taxes. Outsourced services like accounting, legal support, and specialized cleaning can add $500-$2,500 monthly but often cost less than hiring full-time employees.
Part-time evening and weekend staff ensure your coworking space remains accessible during extended hours, typically costing $500-$1,500 monthly depending on operating schedule. Some coworking spaces use member volunteers or automated systems to reduce staffing costs during off-peak hours.
We cover this exact topic in the coworking space business plan.
What are the estimated monthly costs for security systems, monitoring, and access control?
Monthly security costs for coworking spaces range from $30-$100, with initial installation requiring $1,000-$25,000 depending on system complexity.
Basic security systems with door locks, cameras, and simple monitoring cost $20-$60 monthly for small coworking spaces. These systems typically include keypad entry, basic surveillance cameras, and alarm monitoring through a security company.
Advanced access control systems for larger coworking spaces cost $100+ monthly and include member key cards, biometric access, integrated booking systems, and comprehensive surveillance networks. These systems allow members 24/7 access while maintaining security and usage tracking.
Installation costs vary dramatically from $1,000 for basic systems to over $25,000 for comprehensive commercial security installations. The initial investment depends on building size, existing infrastructure, and integration requirements with your coworking management software.
Factor in periodic maintenance, software updates, and potential equipment replacement when budgeting for long-term security costs in your coworking space.
What portion of the monthly budget should be dedicated to marketing, advertising, and member acquisition?
Marketing and member acquisition budgets for coworking spaces typically range from $300-$5,000 monthly, depending on local competition and growth targets.
Smaller coworking spaces often allocate $300-$1,000 monthly for digital advertising, social media management, and local networking events. This budget covers Google Ads, Facebook advertising, website maintenance, and promotional materials for member recruitment.
Digital marketing represents the most cost-effective approach, with search engine marketing, social media advertising, and content marketing delivering measurable results for member acquisition. Local partnerships with businesses, universities, and professional organizations provide additional cost-effective marketing opportunities.
Established coworking spaces may spend $2,000-$5,000 monthly on comprehensive marketing campaigns, including professional photography, video content, influencer partnerships, and premium advertising placements. Member referral programs often provide better return on investment than traditional advertising.
Track member acquisition costs carefully to ensure your marketing budget generates positive returns - aim for member lifetime value to exceed acquisition costs by at least 3:1 ratio.
What is the average monthly expense for software, subscriptions, and digital tools?
Software and digital tool expenses for coworking spaces average $205-$600 monthly, covering essential management systems and productivity tools.
- Coworking management software: $105-$299 monthly for booking systems, member management, billing, and access control integration
- Accounting and financial software: $30-$100 monthly for bookkeeping, invoicing, and financial reporting specific to coworking operations
- Communication tools: $25-$75 monthly for email marketing, member communication, and internal team collaboration platforms
- Website and digital presence: $20-$50 monthly for website hosting, domain registration, and online booking integration
- Security and backup systems: $25-$75 monthly for data backup, cybersecurity, and member information protection
Industry-standard coworking management platforms like Nexudus, OfficeRnD, or Coworks provide comprehensive solutions but costs scale with member count and feature requirements. These platforms integrate booking, billing, access control, and member communication in single monthly subscriptions.
It's a key part of what we outline in the coworking space business plan.
How much should be set aside monthly for taxes, permits, and regulatory compliance fees?
Tax and compliance costs for coworking spaces range from $80-$500 monthly, varying significantly by jurisdiction and business structure.
Business license fees, permits, and regulatory compliance typically require $80-$300 monthly when averaged over annual requirements. Some jurisdictions charge annual lump-sum fees of $1,000+ for business operations, while others require monthly or quarterly payments.
Sales tax collection and remittance for coworking memberships adds administrative complexity and potential costs for compliance software or accounting services. VAT requirements in international markets create additional compliance obligations and costs for coworking space operators.
Professional tax preparation and compliance consulting often costs $100-$200 monthly when spread over annual services, ensuring proper handling of member contracts, business deductions, and regulatory requirements specific to coworking operations.
Consult local business advisors and accountants to understand specific tax obligations and compliance requirements for coworking spaces in your area, as requirements vary significantly between markets.
What is the expected monthly contribution to a reserve fund for capital improvements or emergencies?
Reserve fund contributions for coworking spaces should range from $100-$500 monthly, scaled to your facility's age, size, and risk factors.
Emergency reserves help cover unexpected major repairs like HVAC system failures, plumbing emergencies, or equipment replacements that exceed normal maintenance budgets. Coworking spaces face unique challenges with high member turnover creating accelerated wear and tear on facilities and equipment.
Capital improvement reserves fund periodic renovations, technology upgrades, and facility expansions that maintain competitiveness and member satisfaction. Plan for major refresh projects every 3-5 years to keep your coworking space modern and appealing to potential members.
Newer facilities may allocate $100-$200 monthly to reserves, while older buildings or spaces with aging infrastructure should contribute $300-$500 monthly. Consider your building's condition, equipment age, and local contractor costs when determining appropriate reserve levels.
Maintain reserves in separate accounts to ensure funds remain available for intended purposes and don't get absorbed into day-to-day operational expenses.
What are the average monthly costs of amenities provided to members?
Member amenity costs for coworking spaces average $200-$800 monthly, depending on service levels and member count.
| Amenity Category | Monthly Cost Range | Details and Considerations |
|---|---|---|
| Coffee and Beverages | $150 - $400 | Premium coffee, tea, water, and soft drinks. Quality coffee is essential for member satisfaction and retention |
| Snacks and Light Food | $50 - $200 | Healthy snacks, fresh fruit, granola bars. Some coworking spaces offer catered lunch options for additional revenue |
| Printing and Office Supplies | $100 - $300 | Printer paper, ink/toner, basic office supplies for member use. Heavy printing usage may require usage fees |
| Kitchen and Pantry Supplies | $25 - $75 | Plates, cups, utensils, cleaning supplies for shared kitchen areas and member use |
| Technology and Equipment | $50 - $150 | Charging cables, adapters, presentation equipment, and technology accessories for member convenience |
| Wellness and Comfort Items | $25 - $100 | Hand sanitizer, tissues, first aid supplies, and comfort items that enhance the member experience |
| Event and Networking Supplies | $50 - $200 | Materials for member events, networking sessions, and community building activities |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Understanding these monthly operating costs helps you create realistic budgets and pricing strategies for your coworking space venture.
Get expert guidance and actionable steps inside our coworking space business plan, which includes detailed financial projections and operational guidance for every aspect of running a successful coworking business.
Sources
- Coworking Cafe - Coworking Subscription Prices
- ArchieApp - How to Start a Coworking Space: Costs and Plan
- OptixApp - US Coworking Industry Benchmarks
- Business Plan Templates - Coworking Space Running Costs
- Dojo Business - Coworking Space Monthly Budget
- OptixApp - Coworking Space Insurance
- MyDeskWorks - Pricing
- Coworks - Pricing
- FounderPal - Marketing Budget Examples for Coworking Space
- Security.org - Best Business Security Systems
-Coworking Space Startup Costs: Complete Investment Guide
-Coworking Space Business Plan: Essential Guide
-Coworking Space Optimal Area Per Person Requirements
-Coworking Space Monthly Maintenance Expenses
-Coworking Space Budget Location Considerations
-Coworking Space Budget Guide: Financial Planning
