5 ms·
I disagree. Office space is relatively cheap compared to employee salaries. For a 25 person startup in SF, office space pencils out to the cost of 1-2 employees
by brownkonas 8y ago
I disagree. Office space is relatively cheap compared to employee salaries. For a 25 person startup in SF, office space pencils out to the cost of 1-2 employees depending on the quality of the office. We have capacity to cram in up to 35.
- chrischen 8y agoBut then the employees have to dedicate a good chunk of salary to rent.
- cbhl 8y agoMarket rate rent in SF is something like $3k for a studio, which is like 50-75% of those employees' take-home pay if they're making low six figures.
- ouid 8y agoisn't mid 6 figures 550k?
- cbhl 8y agoOops, you're right. I was thinking 100k-200k for some reason :/
- logfromblammo 8y agoOn a logarithmic scale, mid-6-figures is 10^5.5 = $316228 . Maybe your brain prefers to deal with larger numbers in terms of orders of magnitude?
- goobynight 8y agoThis would assume that they both live in SF and don't have any roommates. Some people commute an hour and get roommates and can pay < $1000
- user5994461 8y agoI think the last startup I worked for in London had the monthly rent peak at half or 1/3rd of the gross salaries when they reached 25 people. That's when they moved to a high quality office in a prime location on a rooftop. With a lot of free space, to accommodate hiring 1 person per week for the next year.
- egypturnash 8y agoHow much of employee salary goes to rent on their apartments?
- fireattack 8y agoThat's the second part of the original statement and he's not questioning that.
- egypturnash 8y agoOh, I missed that. Whoops.