Leases, Landlords and Startups Part 1of 4 Ep 8 Startups and Office Space


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Welcome to Silicon Valley Successes. So over the last few weeks, we've talked with investment bankers, we've talked with marketing experts. We even talked to a founder of an amazing start up here in Silicon Valley. Now, today we have two guests, Mary and Carlos, who work with startups to help them find office space or to help them get from their their garage or their living room to a physical location. But let I'll let them introduce themselves a little bit more. Mary, could you first introduce yourself and then Carlos? Sure. Hi, good evening, Shawn, thank you for inviting us to your show. Thank you Is my honor it



Thank you. So my name is Mary blazer and I'm a commercial real estate agent. I worked for Newmark Knight Frank, formerly new Mark Cornish and carry so Cornish and carry was a boutique firm. Here in Northern California. We merged with Newmark Knight Frank. So we're now in about six continents with over 400 offices. So it's given us a bigger global platform to be able to service clients, especially those clients that are startups coming from foreign countries that need to come here in the Bay Area and establish you know, working opportunities for themselves for their for their startup businesses, and I've enjoyed a 30 plus career and my specialty is the leasing and sales of office and industrial properties here in Silicon Valley. Wow. Carlos, please introduce yourself. Thank you Shawn. My name is Carlos Serreno-Quan, the managing director of American real estate and we were formed last year with the partnership between virtual holdings as well as AGI capital. And so we specialize in leasing tenant representation and



As long as well as land or representation, we have offices in Berlin game, Palo Alto, in San Francisco as well. Okay, so to start, let's have a quick question for you. So what issues do startups face when they're looking for office space?



Well, some of their issues are that they, it's hard for them to figure out how fast they're potentially going to be growing. So finding that right sized space is initially a concern for them, okay, you know, you could lease a space that potentially is too small, that doesn't have enough breakout rooms, you create more noise, and then it you know, it creates some inefficiencies with how you flow in that space, okay, or you could take a space that's potentially too large, and then you've just got all these overhead costs that you're paying for, that you don't necessarily need. So I think finding that right sized space for startups and assisting them in that effort is is something that's pretty critical for a startup company. So with that, right, say space, say at a team of four.



People are six people right now. And I came to you is that too early to talk to someone else at the right time? Or once did that first conversation v



that time? Is it isn't it an important time? Because there are small spaces that can still accommodate that team that size team of people, okay? And then it's just determining from that point on at what future point are you going to double your size or triple your size. So when you're looking for space, you might want to be thinking about how long of a term you're going to be in that one first space okay, that'll last you through that period of time and then moving on to the next so with that I'm just going to keep going with this one question just because there's so much to it



from one term to the next is that a normal six month one year how flexible is that so for some of the like Regis centers, executive suites, places where you can rent on a month to month basis, you could probably do something



Short term most landlords and typical office space, I'd say that the minimum terms are about a year. Generally they would like a longer term lease. But if they've got the ability to move and expand tenants within their building or their project, then some landlords are typically a little bit more flexible than others. It just depends on the size.



But as far as term, it just really depends too. On which landlord in the valley you're dealing with. So with the landlord in the valley, be flexible if they know your startup or not. Oh, yes, they would. Sure.



And, Carlos, if you had this same experience when with issues that that startups might face when when looking for an office. Sure, in my experience, it's really about the right location to attract the right talent as well as being a facility where investors may be as well so for example, I know that talent acquisition for startups as is really challenging and so they need to be an area where transportation tools



Location is actually very attractive to allow their future employees or current founders and teams of that nature because have to get together frequently. So it could be something near bar something the Caltrain it could be anywhere from San Francisco to Palo Alto. But it has to be somewhere where it's easily accessible or some something like that, but also to be an area where their investors can use you go to so we're ready to pitch events, etc. and that sort of thing is a really big consideration as well. So when you're showing potential locations to start up, do you actually tell them that they say this offices that are available and you know, nearby are frequent pitch events nearby, or these VCs are these Angel groups. That's why this office space might be a good fit for you. Yeah, I think that's where we can be helpful at brokers to the businesses as well as, you know, the type of business that they may have. It could be a blockchain, it could be a real estate tech startup. It could be anything other startups that



We are familiar with the community. And we know our own group of investors might be interested as well. And they get excited when they hear that, that we know what their needs are. Yes. And one of the things are from can do is we can, we can tour them in the markets. But we can also show them aerial maps of what companies are located in the areas where they would are potentially looking to go. So, you know, if they're trying to interview or recruit people, potentially from other competitive companies, they'll know where they'd like to potentially be located. So if I was a startup, and I knew I wanted engineers from maybe Google or Facebook, I would come to you and you go, Oh, well, if you want to recruit from these companies, a good office building potential might be in this area because they're already used to making that commute every day and go into your office wouldn't be right that's nice. I've never heard that before. And also they're looking at the demographics to of where their employees technically live, okay, and how close they're going to need to be in proximity to where they want to work. So that's



Another absolutely important we can do



we can run demographic studies for them by zip code, you know if they give me their the weather each of their employees live we can kind of map it out for them so they can also from another perspective, try to find a location that suits everyone's needs.