Remote work is a thing of the past? Not quite. While it’s true that many companies are bringing their employees back to the office, there is still a large percentage of professionals—especially freelancers, consultants, and tech workers—who continue to work remotely full-time or on a hybrid schedule.

For those people, paying for a co-working space or maintaining a commercial lease no longer makes financial sense. That’s where an Accessory Dwelling Unit (ADU) comes in. With the right design, an ADU can double as a professional-grade home office, giving you privacy, focus, and long-term savings.

Let’s crunch some numbers and see what we’re working with.

What is an Office ADU?

An ADU, or Accessory Dwelling Unit, is a small, independent residential structure located on the same lot as a single-family home. While most people think of ADUs as rental units or guest houses, they can also be customized for other uses—including as a fully functional home office.

An Office ADU is essentially a private workspace just steps away from your home. It can be as simple as a 300-square-foot studio with a desk and Wi-Fi, or as advanced as a multi-bedroom soundproofed office with a waiting room, murphy bed, and built-in storage.

Unlike a spare bedroom or a dining-table-turned-desk, an office ADU gives you a dedicated space to focus, meet with clients, and create a true work-life boundary. And because it’s a legal structure, it can also boost your property value and serve other purposes down the line.

Why not just build a guest house for an office?

A common misconception is that guest houses and ADUs are the same thing, but they’re actually quite different. Guest houses are intended for short-term living, so they often don’t come with a full kitchen.

ADUs, on the other hand, are built for long-term housing, so they are required to have a full kitchen with the necessary appliances, counter space, plumbing, and electrical wiring.

You may be asking, “Why would I need all that just for an office?” You probably don’t! A coffee station may suffice for your office, but we encourage our clients to look at the long-term use for your ADU. ADUs can be used for a wide array of purposes over time: a home office today, a rental unit tomorrow, or even a place for aging parents down the line.

By building a permitted ADU instead of an unpermitted “guest house,” you not only ensure compliance with local regulations, but you also open up far more flexibility, value, and income potential in the future. In other words, you’re not just building an office—you’re building an asset.

Cost Comparison: Office Space Lease vs ADU

Let’s break down what it actually costs to rent a dedicated office space versus building a small ADU that functions as your private office.

Scenario:

You’re a business consultant based in San Diego. You meet with clients regularly and need a quiet, professional setting—something more than just a laptop on your kitchen table. A 300 sq ft garage conversion ADU in your backyard could offer the privacy and polish you need, but is it worth the cost?

Option 1: Leasing Office Space

Let’s say you lease a small private office in a coworking building near downtown San Diego.

5-Year Cost of Leasing Office Space: ~$120,000

Option 2: Building a 300 sq ft ADU Office

Now let’s look at converting your garage into a permitted ADU.

  • Estimated Build Cost: $180,000 (San Diego average for a high-quality 300 sq ft conversion)
  • Ongoing Costs: Minimal (utilities, cleaning, occasional maintenance)
  • Commute: 30 seconds
  • Perks: Full privacy, dual-purpose use (guest space, rental later), adds property value

If you finance the build with a 30-year loan at ~7% interest, your monthly cost could be around $1,200–$1,400, depending on your down payment. But unlike leasing, that money goes toward an asset you own—one that increases your property value and could generate rental income later.

5-Year Cost of an ADU Office (with financing): ~$84,000

Equity Built: ~$30,000+ (plus long-term appreciation)

Real World Example of When an Office ADU Made Sense

Skeptical? We don’t blame you!

But maybe we can nudge you with a real-world example of someone who crunched the numbers, considered their long-term goals, and realized that building an office ADU was exactly what the doctor ordered. Literally.

Anyone that has lived or worked in Los Angeles knows what a hassle it is to commute everyday in the infamous traffic. Walter, a psychologist, was no stranger to the headache and the burden on his wallet.

Between gas, parking, meals, and the lease, Walter was paying over $3,000 a month for his office in Downtown Los Angeles where he met with clients. Back in 2017 when California first began passing game-changing ADU bills, Walter realized he could build the perfect office space right in his backyard.

Tucked away in his backyard garden, Walter’s ADU features soundproof walls, elegant French doors, and a serene outdoor patio that his patients can’t stop raving about. The best part is that the 300 sq ft studio ADU only added about $500 a month to his existing mortgage.

In the future, when Walter and his wife, Marcia, decide to retire, they plan on using the ADU to house a caretaker.

Check out the full video ADU tour and interview with Walter here!

Non-Financial Benefits of an ADU Office

While cost savings and long-term value are big motivators, many homeowners say the non-financial benefits of building an ADU office are what truly transform their work lives.

Zero Commute, All the Time

No traffic, no parking stress, no wasted hours. Your commute becomes a quick walk through the garden—giving you back time and mental energy every day.

Separation from the Main House

When your office is just a few feet from your back door—but not inside your living room—you get the best of both worlds. A physical boundary between “home” and “work” helps you stay focused during the day and truly unplug at night.

Customization & Comfort

You’re not limited by someone else’s design. Want built-in bookshelves? Natural light? A standing desk? A meditation nook? You can create a space that matches your workflow and reflects your style.

Multi-Use Potential

We’re sounding like a broken record here, but we can’t say it enough. Even if you’re using it as an office today, an ADU can easily be repurposed. It could become a rental for passive income, an art studio, or even housing for a loved one. Flexibility like this is rare—and powerful.

Thinking About Making the Switch?

ADUs aren’t just for grandmas anymore. These small but mighty units have come a long way since they first crashed into the real estate scene, having evolved into versatile, high-performing spaces that meet the demands of modern life. They offer homeowners a smarter way to use their property and take control of their time, space, and future.

Maxable has helped hundreds of homeowners reimagine the potential of their properties. Ready to learn more? Talk to an ADU expert on our team and we’ll help you build your prime ADU team to get your started. Book your call here.