interesting discussion! in my own experience I've found that moving to an office really works if you move to an office in the "right" location, otherwise you may as well not bother and save the money. Our company set up office in a dodgier part of town and toiled away for a year or so, of course, the rent was low. We made a decision to move into an office right smack bang in an area renowned as a prime business location and although it meant a rent increase of several hundred percent, the work we were suddenly able to attract more than compensated for it and we have actually ended up much better off, to the extent that our then team of 3 has become a 4 memeber team and will soon require to become a 5 member team just to keep the workload manageable.

Of course, our situations may not be the same but there are a few things to think about here...one is the (very important) seporation of work and life, the other is client confidence (if they can visit your office they have faith that you're a "propper" company and not some teenager in his bedroom, networking opportunities arise if you're in a shared building, it's amazing the work you can get just by having a quick chat with the people around about you....i suppose overall, you have a hesitancy to spent 400 - 500 per month....look at it this way, the "right" office should help you attract work many times that number...