Your "cool office" is killing your runway. Founders love standing desks and cold brew taps, but the math tells a brutal story. Every time you force a developer into a chair in San Francisco or London, you light $10,600 on fire. Annually. Per person.
We ran the numbers. We didn't use best-case scenarios; we used averages. If you're building a startup in 2026 and still signing commercial leases, you're not optimized. Whether you're a bootstrapper or hiring engineers with VC money, this data impacts your survival.
1. Results: The High Cost of "Collaborative Space"
You need ~120 sq. ft. per employee. That's not a palace; that's industry standard for a desk, a chair, and enough room to walk to the bathroom without hitting a printer.
In top US tech hubs, rent varies wildly, but it's never cheap. San Francisco sits around $87 per sq. ft. Even "affordable" Pittsburgh is $25. The average? $46.50 per sq. ft. monthly.
That's just for the empty floor. We haven't turned the lights on yet.
2. The "Hidden Tax" (Utilities & Maintenance)
Building Operating Managers Association (BOMA) data pegs operating costs at ~$17.68 per sq. ft. This covers electricity, water, cleaning crews, and fixing the AC when it breaks in July.
- A Space: 120 sq. ft. per human
- B Rate: $17.68 / sq. ft.
- $ Total: $2,121 / year / employee
3. The Snack Trap
"Free snacks" sound like a cheap perk. They aren't. Budgeting a modest $5 per day per employee for coffee, fruit, and the occasional bagel adds up fast. Assuming 260 workdays:
If you provide lunch, triple that number. Comparing hiring models highlights how these "small" costs destroy margins.
Total Breakdown: Where the Money Goes
| Expense Category | Annual Cost (Per Head) | Remote Equivalent |
|---|---|---|
| Office Rent | $5,580 | $0 |
| Utilities/Ops | $2,121 | $0 |
| Coffee/Snacks | $1,300 | $0 |
| Equipment (Amortized) | $1,600 | $1,600 (Still need laptops) |
| TOTAL SAVINGS | _ | ~$10,601 / Year |
The Global Arbitrage Bonus
The $10,600 is just operational savings. The real money is in talent arbitrage. Hiring a senior engineer in the US costs $150k+. Hiring world-class talent in Eastern Europe or LatAm costs significantly less for identical output.
US/UK Rates
$60 - $120 /hour
Remote (Global) Rates
$30 - $55 /hour
You aren't just saving on rent; you're halving your burn rate. Check our vetting process guide to see how we find these diamonds.
Frequently Asked Questions
Does remote work lower productivity?
No. Data consistently shows remote workers are equal to or more productive than office workers. They save average 500+ hours yearly on commuting, which often translates back into work or rest (preventing burnout).
Are there hidden costs to remote hiring?
Some compliance and "Employer of Record" (EOR) fees apply if hiring internationally. However, these are negligible compared to rent. A typical EOR costs $500/month flat fee, whereas rent + operations usually exceed $900/month per head.
How do I maintain culture remotely?
Culture isn't a ping pong table. Culture is how you communicate, respect time, and deliver feedback. Use the money you save on occasional offsite retreats—flying everyone to a nice location once a year is still cheaper than a year of office rent.
Stop Paying to Commute
The office is a 20th-century relic with a 21st-century price tag. $10,600 per employee is enough to hire another junior developer, boost your marketing budget, or extend your runway by months.
Don't let nostalgia for "water cooler moments" bankrupt your company. Go remote. Save cash. Win.
Reinvest Your Savings in Talent
Take that $10,600 and hire better engineers. We connect you with the top 1% of pre-vetted remote developers who are ready to start in 48 hours.
Hire Remote Talent