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Of course self-leased speace is generally (way) better - if you can find it (at the capacity you need right now) and hire people to run it for you. WeWork's en

Of course self-leased speace is generally (way) better - if you can find it (at the capacity you need right now) and hire people to run it for you. WeWork's entire model relies on the fact that, while not it's not the swankest, most productivity-enhancing working spaces you've ever been in (far from it) -- it is available pretty much on tap, in at least some capacity, in key cities. Remember all those outright shitholes many companies used to work in (in their bootstrap phases) at least? Or this whole "borrowing office space from a friend, until..." thing? Or, until not too long ago, literally using coffeeshops or restaurants as meeting rooms? WeWork seems to have succeeded in making that culture pretty much go away, at least.

pcsanwald 9y ago
exactly. Finding less than a 5 year lease in Manhattan is extremely challenging in my experience.
- jakemoshenko 9y ago
  They will almost always allow you to sublease though, which is its own horrible time sink to find a replacement tenant.
  - pcsanwald 9y ago
    sure, I've subleased a bunch. my experience with that is that two kinds of companies generally sublease: places that are growing and will eventually want the space you're occupying for themselves, or places that aren't doing well and will eventually fold. I've subleased from both :). it's for sure a good option if you want a very short term thing, but it's a tough spot when you probably want > 1 year but 5 is a stretch.
deepGem 9y ago
In cities like Bangalore, getting self-leased office space for an early stage startup is a nightmare. Either you have to take up individual houses converted as offices (borderline illegal) or you have to settle for crappy office spaces in god forsaken locations. Even for established companies, managing office real estate is a nightmare. For instance, Microsoft had leased some office space in the heart of the city and even they had difficulty expanding and finding appropriate offices in the vicinity. (They have now taken up space at WeWork as a makeshift arrangement). So yeah, while WeWork seems like an expensive real estate play, they do fill a market need.

pcsanwald 9y ago

exactly. Finding less than a 5 year lease in Manhattan is extremely challenging in my experience.

jakemoshenko 9y ago
They will almost always allow you to sublease though, which is its own horrible time sink to find a replacement tenant.
- pcsanwald 9y ago
  sure, I've subleased a bunch. my experience with that is that two kinds of companies generally sublease: places that are growing and will eventually want the space you're occupying for themselves, or places that aren't doing well and will eventually fold. I've subleased from both :). it's for sure a good option if you want a very short term thing, but it's a tough spot when you probably want > 1 year but 5 is a stretch.

deepGem 9y ago

In cities like Bangalore, getting self-leased office space for an early stage startup is a nightmare. Either you have to take up individual houses converted as offices (borderline illegal) or you have to settle for crappy office spaces in god forsaken locations. Even for established companies, managing office real estate is a nightmare. For instance, Microsoft had leased some office space in the heart of the city and even they had difficulty expanding and finding appropriate offices in the vicinity. (They have now taken up space at WeWork as a makeshift arrangement). So yeah, while WeWork seems like an expensive real estate play, they do fill a market need.