London, New York and Silicon Valley have never been famous for being cheap places to live in. According to a recent report of Knight Franks though, also office rent costs for startups are sky rocketing and, of course, London is leading the race.
Renting an office in Shoreditch district in fact, cost more than 66,000 US$ annually that is enough for relegating Brooklyn and San Francisco Mid Market to 2nd and 3rd position respectively with a good 62,000 US$ and 61,000 US$.
You will find more statistics at Statista
The top ten is completed by Paris, Boston, Dublin, Los Angeles and then far east trio Hong Kong, Beijing and Singapore.
Till now the bad news. But Knight Frank has also calculated the rent for a 4 seats shared office and the good news is that prices are far lower also if not properly cheap. In this case London Shoreditch and Brooklyn would cost “only” around 29,000 US$, while San Francisco 24,000 US$.
Oddly enough Hong Kong has dedicated offices cheaper than serviced ones!
The outcome is that co-working spaces are very important for cutting costs of starting up and having an high entry level values for office rent could bring lot of potential entrepreneurs to drop out.
Another service that in my opinion could help in cost cutting is co-living, having house shares with communal facilities such as computer lab, printers, wi-fi connection could bring to cut dramatically office expenditures.
Basically you can have a bedsit and an office at the cost of the bedsit only, for sure won’t be good when you rise facebook-like funding but to start cheap is a good option for sure!