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The outlook for Bay Area startup space in 2017

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Re: The outlook for Bay Area startup space in 2017

#31

Post by jayjay71 »

JimboOmega wrote: post #29
rubicon33 wrote: post #27

>> "Will SF still be as appealing when the talent can’t afford to be here?" If you're living responsibly, and saving like you should be, then I'd argue we're already at a point where talent can't afford to be there. >> "Transportation is a major factor around where buildings are being built. It has to be unprecedented with how many more people are coming downtown and we basically have the same transportation system f…

I wonder what it would take to really kill the golden goose, so to speak - to really drive away the startups. Every year I hear how place X is the new startup mecca and it's so much cheaper and has all these advantages, and it doesn't happen. Some people would argue it's basically impossible for the city to kill the industry (if they are even vaguely reasonable); others argue it's already dead. I don't know, myself.

So long as the investors are here (and often times require you to move to get funded), the startups will be here.

Re: The outlook for Bay Area startup space in 2017

#32

Post by nugget »

JimboOmega wrote: post #29
rubicon33 wrote: post #27

>> "Will SF still be as appealing when the talent can’t afford to be here?" If you're living responsibly, and saving like you should be, then I'd argue we're already at a point where talent can't afford to be there. >> "Transportation is a major factor around where buildings are being built. It has to be unprecedented with how many more people are coming downtown and we basically have the same transportation system f…

I wonder what it would take to really kill the golden goose, so to speak - to really drive away the startups. Every year I hear how place X is the new startup mecca and it's so much cheaper and has all these advantages, and it doesn't happen. Some people would argue it's basically impossible for the city to kill the industry (if they are even vaguely reasonable); others argue it's already dead. I don't know, myself.

To paraphrase an author I read recently ... it will happen slowly, and then all at once.

Re: The outlook for Bay Area startup space in 2017

#33

Post by closeparen »

JimboOmega wrote: post #29
rubicon33 wrote: post #27

>> "Will SF still be as appealing when the talent can’t afford to be here?" If you're living responsibly, and saving like you should be, then I'd argue we're already at a point where talent can't afford to be there. >> "Transportation is a major factor around where buildings are being built. It has to be unprecedented with how many more people are coming downtown and we basically have the same transportation system f…

I wonder what it would take to really kill the golden goose, so to speak - to really drive away the startups. Every year I hear how place X is the new startup mecca and it's so much cheaper and has all these advantages, and it doesn't happen. Some people would argue it's basically impossible for the city to kill the industry (if they are even vaguely reasonable); others argue it's already dead. I don't know, myself.

I think there'd be overwhelming support among the voters of San Francisco, Palo Alto, Mountain View, etc. to establish border controls, with "proof of residency before 19XX" and "proof that you are not employed in tech" as conditions of entry.

As far as tactics that might survive Supreme Court challenge, I could see SF's affordable housing program ramping up to 100% of units. The city could then apply those tests for eligibility in the program, in addition to the income ceiling it already uses. The city is already a command economy; state allocation of apartments according to the community's values (i.e. make life hell for tech workers at all costs) is a natural next step.

Seattle, Portland, Boulder, and New York might just do the same.

I will not be surprised to see the end of freedom of movement in the United States within my lifetime. The cities that are attracting migration do not want more people. There is widespread support, both among the greedy (who don't want their views and neighorhood character ruined) and bleeding hearts (who don't want the urban poor to suffer from gentrification) that urbanization needs to be stopped.

Maybe someone with a ton of money to spare (Apple?) will start a new city. Or maybe somewhere which is not so attached to its current state (Detroit?) will let us in.

Re: The outlook for Bay Area startup space in 2017

#35

Post by ryandamm »

api wrote: post #28
jtbed wrote: post #10

Earlier quoted context omitted.

Office space is usually the 2nd biggest expense for any business, startup or not. but prices certainly get inflated with vc funding and high demand. aside from the price, office space is really, really important for attracting talent and creating a productive work environment. but I agree, it's so expensive and we try desperately to find the best options for the startups we work with in order to achieve these things…

Really? That blows my mind. We are small granted but for us office space is a little under 3% of our burn. Of course we're in SoCal and use an economical coworking space. Are there no such things in the Bay or do they cost way more?

You can get coworking spaces for ~$300-500+/month per desk, sometimes more for dedicated space. For a funded startup, I've heard that you should budget ~100+ square feet per employee, and rents in SF are in the $50 (very low) to $100 / square foot/year range.

How much are you paying your engineers? 3% of burn sounds pretty low, but it's not completely out of the range of what I just penciled in here. (I was prepared to disagree... but the numbers aren't crazy on either side.)

Re: The outlook for Bay Area startup space in 2017

#37

Post by bdcravens »

beatpanda wrote: post #36

All I want is for everyone who complains on Hacker News about living in San Francisco or in the Bay Area to be able to live wherever their heart desires and keep their jobs. I think that would fix everything. Can we all resolve to make that happen? Please?

> able to live wherever their heart desires

This may be SF/Bay for those complaining. They feel they "deserve" for it to be cheaper.

Re: The outlook for Bay Area startup space in 2017

#38

Post by bdcravens »

jtbed wrote: post #10
overcast wrote: post #2

Spending that much on rent for a starting company, is just completely ludicrous.

Office space is usually the 2nd biggest expense for any business, startup or not. but prices certainly get inflated with vc funding and high demand. aside from the price, office space is really, really important for attracting talent and creating a productive work environment. but I agree, it's so expensive and we try desperately to find the best options for the startups we work with in order to achieve these things…

> Office space is usually the 2nd biggest expense for any business, startup or not

Our #2 is definitely AWS, not rent. (We're in Houston)

Re: The outlook for Bay Area startup space in 2017

#39

Post by School-Cotton »

closeparen wrote: post #33
JimboOmega wrote: post #29

Earlier quoted context omitted.

I wonder what it would take to really kill the golden goose, so to speak - to really drive away the startups. Every year I hear how place X is the new startup mecca and it's so much cheaper and has all these advantages, and it doesn't happen. Some people would argue it's basically impossible for the city to kill the industry (if they are even vaguely reasonable); others argue it's already dead. I don't know, myself.

I think there'd be overwhelming support among the voters of San Francisco, Palo Alto, Mountain View, etc. to establish border controls, with "proof of residency before 19XX" and "proof that you are not employed in tech" as conditions of entry. As far as tactics that might survive Supreme Court challenge, I could see SF's affordable housing program ramping up to 100% of units. The city could then apply those tests for…

Seattle, Portland, and Boulder maybe, but I absolutely guarantee New York will never do this.

Re: The outlook for Bay Area startup space in 2017

#40

Post by School-Cotton »

sharkweek wrote: post #7
flippyhead wrote: post #6

You could always move to Seattle!

I'm pretty sure we're headed the same direction up here

Not even remotely close. I have lived in both Seattle and NYC and the difference in rent cost between the two places makes you feel like you are in totally different countries at dramatically different levels of development.
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