Cost Comparison
How does the cost of leasing space for 5 people in a Business Center compare with the cost of leasing 2,500 Square Feet of Conventional Office Space?
| Monthly Expenses | Conventional Space | Preferred Offices |
|---|---|---|
| Rent (based on $35/sq foot - 3000 sq feet) | $8,750 | $7,500 |
| T1 Internet Access | $1,500 | $450 |
| Telephone Equipment & Lines | $228 | $400 |
| Misc Ongoing Costs | ||
| Copier (based on 1,000 copies/month) | $380 | $114 |
| Fax | $50 | As used |
| Postage Machine | $50 | As used |
| Coffee Supplies & Water | $130 | $0 |
| Personnel Costs (including benefits) | ||
| Receptionist | $3,250 | $0 |
| Repairs & Maintenance | $166 | $0 |
| Security System Monthly cost | $100 | $0 |
| Total Monthly Ongoing Expenses: | $14,604 | $8,464 |
| Total Annual Ongoing Expenses: | $175,248 | $101,568 |
| Annual Recurring Savings: | $73,680 | |
| Annual % Savings: | 42% | |
| Start-up Costs | Conventional Space | Preferred Offices |
|---|---|---|
| Space Build-out in Excess of Landlord TI Allowance (3,000 sq ft @ $20/sq ft) | $60,000 | $0 |
| Furniture - Reception/Conf Room/Offices | $40,000 | $0 |
| Artwork | $2,000 | $0 |
| Office Equipment (Purchase costs) | ||
| Phone Switch w/voice mail | $40,000 | $0 |
| Network Software/Servers/Setup | $8,000 | $0 |
| TV | $500 | $0 |
| LCD Projector | $2,000 | $0 |
| Security System Installation | $3,000 | $0 |
| Set-Up Fees | $0 | $950 |
| Legal Fees to review agreement | $5,000 | $500 |
| Security Deposit (refundable) | $43,750 | $15,000 |
| Total Start-Up Costs: | $204,250 | $16,450 |
| Start-Up Capital Savings: | $187,800 | |
Additional benefits of Preferred Offices:
- No delay in setting up move into offices - offices are ready for occupancy
- No delay in having equipment installed (phone lines, etc.)
- Access to free use of global network of business centers & meeting rooms
- Short License Agreement
- Flexibility to add additional space as needed