For startups and growing businesses in Kenya, optimizing office space costs is essential for budgeting and efficiency. Understanding the cost per employee helps in making informed leasing decisions and managing overheads. Here’s a guide from Makao Spaces on how to accurately calculate office space costs per employee.

1. Determine Your Total Office Space Costs

Before breaking down costs per employee, calculate your total office expenses, including:

• Rent – Monthly lease payments or mortgage costs
• Utilities – Electricity, water, and internet
• Service Charges – Security, cleaning, and maintenance fees
• Furnishing & Equipment – Office desks, chairs, and IT infrastructure
• Additional Costs – Parking, insurance, and property taxes

2. Calculate the Total Usable Office Space

Determine how much of your leased space is usable for employee workstations. Exclude areas like:

• Meeting rooms
• Reception and waiting areas
• Storage rooms and hallways

The usable office space gives a more accurate per-employee cost.

3. Establish the Number of Employees

Count the number of employees occupying the office space. If you have hybrid or remote workers, factor in desk-sharing or rotational workspace usage to optimize cost distribution.

4. Use the Cost Per Employee Formula

Once you have all the details, apply this simple formula:

Cost Per Employee = (Total Office Space Costs) / (Number of Employees Using the Space)

For example, if your total monthly office costs are KES 500,000 and you have 50 employees, your cost per employee would be:

KES 500,000 / 50 = KES 10,000 per employee

5. Consider Cost Optimization Strategies

To reduce office space costs per employee, consider:

• Co-working Spaces – Flexible and cost-efficient for startups
• Hybrid Work Models – Reduce desk needs by allowing remote work
• Efficient Space Planning – Optimize workstation layouts to accommodate more employees in less space
• Negotiating Lease Terms – Seek flexible leasing terms with landlords

Calculating office space costs per employee helps businesses optimize budgets and make strategic decisions about office space. Whether you’re leasing traditional office space, opting for co-working environments, or implementing hybrid work models, understanding your cost per employee ensures sustainable business growth.

Looking for affordable office space in Kenya? Visit Makao Spaces for the best workspace listings and leasing advice.