One of the common questions I get from people in the commercial real estate field is “How do the Atlanta Tech Village per person per suite fees compare to traditional commercial real estate rates?” The short answer is that it’s complicated as it isn’t an apples to apples comparison. Here’s the long answer as to how a 10 person modular suite @ $3,250/month compares to traditional real estate:
- 1,010 rentable square feet @ $20/ft is $2,025/month
- $35 per person per month for furniture is $350/month
- $50 per person per month for food and drink is $500/month
- $25 per person per month for a managed firewall and fiber internet is $250/month
- 5 parking spots @ $90 per month is $450/month
- Total: $3,575/month
So, by commercial real estate standards, the number brokers are looking for is the $20 per rentable square foot amount. It still isn’t quite the same because a six month agreement for a space with nice finishes isn’t available in the regular world, let alone one that’s so small and furnished. Of course, the real value-add is in the community and camaraderie that comes with being in one of the largest tech entrepreneur centers in the country.
What else? What are some other thoughts about translating the per person Atlanta Tech Village costs to standard commercial real estate rates?