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