If your business is like many others around the globe, your team, operations, and work schedule have shifted in the last few years. And these shifts may have you re-evaluating some of your biggest expenses—including the cost to rent office space and whether it’s a worthwhile outlay of cash.
In this article, you’ll learn about the cost to rent office space in Orange County and how it compares to more flexible options, like a private office in a coworking space, so that you can make the best and most educated decision about what’s right for your team, your business, and your budget.
How Much Does it Cost to Rent Office Space in Orange County?
The average annual cost to rent office space in Orange County ranges from approximately $18.00 to $55.00 per square foot per year, with an average cost of around $33.36 per square foot. The variation between prices ultimately boils down to a mixture of factors, from size to lease length, building quality, location, amenities, and more.
But how many square feet of space do you need?
The recommended amount of space per employee has varied over the decades. In previous years, workplace design studies concluded that the average office space per employee was about 75 to 150 square feet, according to JLL. Now, in the wake of the pandemic, this number has jumped closer to 200 square feet, which includes dedicated desk space and the space surrounding it, and should also consider the amount of space in meeting rooms and common areas.
So, with a basic calculation based on the average price of office space in Orange County, you can expect to pay approximately $16,680/per year for a team of five people in a traditional office lease—or around $7,800 per year for a private office at a flexible office space like The Colab Space.
If you’d like to learn about pricing for a private space that suits your team and your needs, get in touch with us today.
5 Factors That Impact the Cost of Renting Office Space in Orange County
The cost to rent office space in Orange County varies based on a number of factors:
1. Location
Location is key when it comes to finding an office space. Highly populated areas are, of course, more expensive. Other location factors that impact price include proximity to:
- Airports or other transportation hubs (i.e., train stations and bus lines)
- Major roads
- Parking
- Public transportation
- Shops, restaurants, and other amenities
The key to finding the right location is to decide what ultimately works best for you and your team. If most employees are located in the suburbs, for example, a commute to the city center might not be ideal. Consider both your operational and personnel needs before choosing a location.
Colab Space is located in the heart of Orange County, with 58 nearby restaurants and 14 hotel and lodging options. This, plus our proximity to the John Wayne Airport (0.7 miles away), put Colab Space in a desirable location for professionals both living in the area and traveling through.
2. Amenities and Features
Included in the overall cost to rent office space are amenities and features. This varies significantly by location, building, strata, or owner, but may include:
- Mail or virtual office services
- Gyms, lounges, or event space
- Parking or bike storage
- On-site reception or other support services
- Specialized, high-end, or unique decor and furnishings
- Easy building access with fobs or key cards
- On-site food services
- Outdoor facilities
Your traditional office lease doesn’t necessarily include access to all of these amenities and features. There may be additional overhead, insurance, and taxes expenses that aren’t included in the monthly rent, so make sure to inquire about those as well.
When you choose a private office in coworking space, you’re opting into an all-inclusive monthly membership. This means that features and amenities such as a wellness room, member events, or our famous spa water here at Colab Space are all part of the cost to rent office space.
3. Building Category
The next factor that impacts price is the grade of the building. Office buildings are typically categorized into Grade A and B buildings, with Grade A as the more desirable option.
While there are some criteria to determine what each means, these grades are subjective. They’re based on factors such as:
- Location
- Age of building
- Infrastructure
- Technological capabilities
- Maintenance
- Amenities
- Perceived value or market perception
In short, Grade A office buildings like Colab Space are the most prestigious and sought-after ones. This may elevate their pricepoints, but you get what you pay for.
4. Service
On-site reception, concierge, or other support services can impact the cost to rent office space. When considering your options, think about how much support you’d ideally like to have or how available the landlords are.
At Colab Space, our onsite team is part of the community, always there to help with questions, issues, event planning, or anything else that comes up. We offer a boutique workspace with the hospitality service you’d expect from the most high-end office spaces.
5. Size
Not only does the cost to rent office space increase by size, but there are economies of scale at play as well. It’s common to see lower prices per square foot for very large offices—the bigger the space, the bigger the discount per square foot.
This may benefit large companies with hundreds, or even thousands, of employees, but it can work against small and medium-sized businesses.
If you’re not big enough to take advantage of economies of scale to reduce the cost to rent office space, you may be better off in a flexible office that offers better value for the space you need.
4 Things to Look for in an Office Space
Besides these factors that impact the cost to rent office space, you and your team have specific needs. You’ll want to consider what you’re looking for in an office space, as this will impact both your operations and the cost to rent office space.
Here are some things to think about:
1. The Right Size For Your Team
Besides considering how economies of scale impact the cost to rent office space, you need to select the right size for your team.
Many traditional office spaces don’t offer the flexibility to match our new hybrid, remote, and shift-work schedules. As operations and schedules keep changing, getting locked into a contract for the wrong-sized office space can be a detriment to your business.
When choosing an office space, consider:
- Schedule: Is your entire team working in the office? Or are some on hybrid schedules? If so, consider how you will accommodate team members. Shiftwork schedules are popular today, with employees working on a desk-sharing rotation.
- Size: Given the number of people working at any one time, you can choose an approximate size. A good rule of thumb is 100 square feet per person.
With a flexible workspace like our private offices at Colab Space, you’re not locked into a rigid contract. Our flexible terms allow you to scale up or down as needed, so you’re only ever paying for the space you use.
2. Spatial Diversity
Most post-pandemic employees are accustomed to the comfort and flexibility of working from home. To avoid the feeling of being “stuck” at a single desk, you can prioritize spatial diversity, or a variety of areas like:
- Lounges
- Kitchen
- Meeting rooms
- Outdoor spaces
- Private phone booths
- Wellness rooms
When you rent a private office at Colab Space, you have access to our entire workspace. It’s the best of both worlds—privacy in your office but spatial diversity to allow your team to work where and how they want.
3. Events and Community
Something else that makes your office space more appealing is a sense of community and belonging. You don’t want to bring people together in a workspace for them to sit independently in cubicles and still have a bunch of meetings on Zoom.
Instead, when your team is in the office—whether part- or full-time—create space for connection.
Having a private office in a coworking space means you’re part of a wider community. Your team will be able to collaborate with each other in your private workspace, but also have access to community and networking events with other professionals in the coworking space.
4. Service and Support
With a traditional office, you write a check to the landlord each month and may have no other communication until it’s time to renew the lease.
But with a flexible workspace like Colab Space, we’re proactively attentive and anticipate your needs, ensuring you’ve always got everything you require to operate your business, achieve greater success, and keep your employees happy.
Benefits of a Flexible Workspace in Orange County
The cost to rent office space isn’t just the sticker price you see. Wrapped up in it are both the:
- Tangible features: This includes the location, size, building quality, amenities, features, and overall look.
- Intangible features: This includes the community, opportunities for connection, flexible contracts, and support services. These are part of your Employee Value Proposition (EVP), or what you have to offer employees. It creates an engaging work environment that helps your team do their best work and attracts top talent to your organization.
Looking at your office space holistically helps ensure you’re choosing somewhere that will fit your team’s needs and allow them to do the best work—not just have a desk to sit at.
If a private office space is not what you need right now, you may consider opting for a hot desk membership or dedicated desks instead. At Colab Space, these options start at $300.00/month and $480.00/month, respectively, making them a cost-effective option to provide your team with the benefits of in-office connectivity without the need for a private space.
A flexible workspace in Orange County offers more value for your dollar than a traditional office—you only pay for what you need and can scale up or down as needed. And, because you’re sharing the coworking space with other businesses, entrepreneurs, and professionals, you share overhead costs, which are all wrapped up in a simple monthly fee. The potential cost savings here alone make flexible office space worth considering.
But in addition, your monthly membership includes a full suite of amenities, plus added features like community events and networking.
Find a private office in a coworking space where you can build your business alongside a diverse and inclusive community of entrepreneurs, freelancers, small business owners, and enterprise organizations. Book a tour of The Colab Space today.