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I am going to ask a really stupid question and then run for the hills. The article goes "low cost of capital", "5 year lease", "startups struggling to get thei

by chvid 11y ago

I am going to ask a really stupid question and then run for the hills. The article goes "low cost of capital", "5 year lease", "startups struggling to get their offers accepted by a landlord", "large security deposits" ... Why don't these wellfunded startups just buy their own office buildings?

_delirium 11y ago
They're well-funded for a tech startup, not Donald Trump levels of funding! Prime SF commercial real-estate is going for $500-$1000/sq ft these days, so buying, say, a 5-story, 50,000-sq-ft office building will run you $25-50 million. Tech VCs don't want that level of investment tied up in commercial real-estate; if they wanted to do that, they'd form a real-estate investment fund instead.