This archive report was first published on 19 November 2021.
Co-working Spaces: A Costly Option for Startups ¶
For many startups, the decision to invest in an office space or opt for a co-working space is a challenging one. However, a recent analysis has revealed that co-working spaces are not the cheaper option they seem to be.
According to BuyrentKenya, an online real estate platform, an office space of 218 Square Feet for rent in Nairobi Central could cost as low as Ksh30,000 per month. In contrast, a co-working space for a team of 10 would cost upwards of Ksh150,000 per month, with individual desk access costing Ksh15,000 per month.
For those who require a dedicated sitting area, the cost of a co-working space increases to not less than Ksh250,000 every month for a team of 10, with individual costs standing at Ksh25,000 monthly. The price further goes up to Ksh300,000 for a private office with amenities such as an assigned phone.
These prices are significantly higher than the rent required for the same team of 10 around the city, where office spaces cost as low as Ksh45,000 depending on the size.
Moreover, co-working spaces may not ask for goodwill or a deposit, but their engagement comes with its own restrictions, such as a non-transferable ticket, which could mean there is a risk of losing money for days one cannot use the space.
Although the concept of co-working spaces may be timely due to the pandemic, its viability remains questionable, largely owing to its cost implications considering most people who use the space are largely startups.
Co-sharing working space could be the future of employment as more people opt to work remotely, but should the pricing remain constant, it may be a distant future as companies choose to continue paying rent as opposed to financing their employer from co-sharing.
Kenyans.co.ke employees pose for a photo at the company's offices in Westlands, Nairobi.
