One of the first things that a new business does is look for office space – a storefront of desk of some kind where they can see clients, make copies, and otherwise manage their business.
Yet, most businesses do not really need an office. Service based businesses (pest control, roofing, landscaping), B2B, even services like insurance and marketing – many of these take place almost entirely remotely, with rare face to face contact and almost no in-person unscheduled visitors. People do not walk into insurance agencies anymore. They do not knock on the door of a marketing company. They do not look for door signs of architects or real estate agents.
Most businesses simply do not need to pay rent on a full time office space. They do not need to buy or lease a commercial property.
Instead, what they need is something more versatile – a place they can see clients, or receive mail, and use as their home base, but where they can otherwise work from home or on location – but where they do not need to pay rent as though they’re working there 24 hours a day, 7 days a week, 365 days a year.
Offices can be expensive, especially here in Thousand Oaks and throughout Southern California. Let’s look at the cost of an office in the region, and then talk about the alternative options of virtual offices and part time shared coworker spaces.
Average Office Rental Rates
On average, office space in Thousand Oaks costs around $30 per square foot per year. Smaller or older spaces may rent for closer to $22 per square foot per year, while modern or Class A spaces in prime locations can rent for $35 or more per square foot per year.
That means:
- A small 1,000 square foot office could cost between $22,000 and $35,000 per year in base rent.
- A mid-size 5,000 square foot office could cost between $110,000 and $175,000 per year.
- Larger, premium offices may cost significantly more, especially when utilities and maintenance are added.
Commercial properties cost more to rent, on average, than even residential properties. That means that if you’re looking to rent one, you have to be able to prove that the business you create by having an office is worth more than the price of the office.
Why Costs Matter for Small Businesses
For many small businesses and startups, the cost of a traditional office can be more than they need. Expenses don’t stop at base rent — utilities, furniture, maintenance, and long lease commitments add up quickly.
This is why options like virtual offices and coworking spaces have become popular in Thousand Oaks. They provide professional space and business support without the high costs and long-term obligations of a traditional lease.
A Practical Approach
If you are considering office space in Thousand Oaks, it is helpful to think about your actual needs. Businesses that only require a mailing address, occasional meeting rooms, or flexible desks may find that coworking or virtual offices are a much more cost-effective solution compared to renting a full office suite.
Find out all of the many benefits of renting a virtual office or coworking space. Visit or call us today at OfficeLOCALE to learn more.
