Just ran the numbers on our office lease and I think I was wrong about remote work

I found a report from the Austin Chamber of Commerce that said businesses in the downtown core are paying an average of $52 per square foot in rent right now. That got me looking back at our own lease we signed 18 months ago. We have 12 people in a 2,000 square foot space and I realized we are spending about $25,000 a month just on the office, utilities, and cleaning. After adding in the commute costs and coffee runs, I think the popular idea that being in office is better for collaboration might not hold up for smaller teams like ours. I was totally on the side of in-person before I sat down with the spreadsheet yesterday. Has anyone else switched back to remote after actually adding up all the hidden costs?

3 comments

3 Comments

thomas_torres13d ago

Pretty sure utility costs are included in that $52/sq ft number.

charlescraig13d ago

Idk, going remote killed our team's ability to just turn around and ask a quick question.

piper77913d ago

My cousin's old firm in Portland did the math and found they were spending an extra $1,200 per person a month on parking and lunches when they forced everyone back. They switched to a hybrid model where people come in twice a week and now the office footprint is way smaller. It's wild how much stuff like janitorial services and printer paper adds up to when you actually track it.