The document outlines the typical evolution of a startup company's office space needs as it grows from a small founding team in a co-working space to larger international headquarters. It discusses the changing characteristics and considerations at each stage from factors like number of employees, monthly costs, size of space, funding stage, and decision makers. The stages generally progress from co-working spaces for early startups to larger leased offices nationally or internationally for later stage companies with hundreds of employees.

1. The Evolution of a Startup

2. A startup is a unique specimen. From a co-working office and a flip-flop sporting founder, to
international headquarters and a high-powered CEO, these high-growth, technology-oriented
companies have an evolutionary pattern all their own.
Co-working First Office Headquarters National/
/Shared International
Number of Monthly Costs: Number of Monthly Costs: Number of Monthly Costs: Number of Monthly Costs:
Employees Employees Employees Employees
1-10 >$15,000 10-100 $75,000 100-500
UP
TO
$500,000 500-10k >$500,000
Size of Space: Size of Space: Size of Space: Size of Space:
500 - 3,000ft2 3,000 - 20,000ft2 20,000 - 100,000ft2 >100,000ft2

3. Headcount Funding Stage CRE Decision Makers Office Type
stage C-Suite, Cofounders,
1 1-10 Owner, Angels Single Biz Dev, Small Coworking, Shared,
team of Engineers or Own Office
stage
2
C-Suites, Cofounders,
10-100 Series A-B HR person, office
manager
Own Office
stage HQ, minimal multi
3
Series B-E COO, Facilities
100-500 venture funding Director, Csuite still
involved
market expansion,
usually by acquisition
stage Facilities Director HQ, large
4
500-10k Private or Public and team, CFO, less
involvement from
national/international
presence, talent
CEO acquisitions

4. Startups in the Space Characteristics Size of Space Density
stage
1
Getaround, Kiip, High density, 50-
Udemy, AppsStores
Creative, Open 500 - 3,000 ft2 150sq per person
stage Betterworks,
2
Creative with
Thumbtack,
limitations 3,000 - 20,000 Mid to high density
Foursquare
stage Square, Dropbox, More diversity in
3
Preserve some
space, common
Etsy, Ngmoco startup feel, less 20,000 - 100,000 areas, 100-200 per
creative
RSF per person
stage Building Amenities,
150-200 per RSF per
person, different divisions
4
Facebook, Twitter, Campus, Less have different densities,
Linkedin, Salesforce Startup and more >100,000 permanent and free
address, different offices
Corporate
specialize

5. !
Terms Up Front Costs Monthly Costs
stage
1
Month to month or
1-2 year deals
None or minimal $300 - <$15,000
stage Modest to create
2 $15,000 - $75,000
2-5 years identity and the right
“look and feel”
stage Upfront costs for IT
infrastructure, imrovments
3 Up to $500,000
to maintain brand and
4-10 years
creativity, and tenant
improvements shared
between tenant and landlord
stage
4
5-15 years, may Expensive to create
consider purchasing best-in-class space >$500,000

6. Considerations Advantage Challenges
stage Keep costs low, but
important to recruit
Flexibility, intimate
1
community, Distraction, security,
initial team, maintain
collaboration, focus, cost
startup feel but build
freedom
camaraderie
stage Greater monthly
budget, anticipating
First bigger office,
shorter term, find
Tough to time a
2
scale, higher rental
growth, greater creative spaces,
obligation relative to
downfall if grow or remain in core
funding, revenue
shrink too early/late markets/submarkets
stage May achieve startup
3
characteristics, better
Time to Volume, Term and Scalability
idea of time to volume
Scale are a challenge
growth patterns and
annual headcound goals
stage Facilities
department, national Global presece, go
Significant real estate
4
expense, unavoidable
and international where the talent is, corporate space, lost
expansion, lease outsource, scale startup mentality and
vs buy real estate