So, I’ve been building PivotDesk for a while now and I often get asked, “When should a company use PivotDesk and when should a company take a direct lease?”
There is no definitive answer: no matter how well funded, how many employees, or who your investors are, the decision to PivotDesk as a guest or take a direct lease and possibly PivotDesk as a host is a decision you need to make on your own. Here are some pros and cons for each, as well as a few guidelines.
Potential PivotDesk Guests
- Only pay for the number of people you have
- Short term commitment
- Amenities often provided
- Startup Energy
- Collaboration opportunities
- No need to focus on designing office or buying furniture
- No extra bills per month
- Ability to work in a neighborhood that otherwise may not be possible
- Short turnaround time to move
- High Security, proprietary, confidentiality concerns possible
- Do not get to design space
- Spaces such as conference room and break room are shared
- Not designed for large inventory or equipment companies
Direct Lease (Potential PivotDesk Hosts)
- You pick the location, floor, size, layout–you are the king of the castle
- Completely private space
- Add, change, delete things whenever you like–its like having your own home
- A professional commercial real estate broker represents you, has your best interest at heart, negotiates on your behalf, is an expert in the market, often knows the landlord or landlord representation, knows what is fair. Jason Lewis and his team at Ecospace Commercial are great resources for direct leases.
- Expensive–financially demanding
- Long term–typically 3-5 year commitment
- Long closing process
If you are raising money and the next 6-12 months of your future are very up in the air, give PivotDesk a chance!
If you are 50 people growing to 70-80 over the next few years, go direct lease.
If you have a lot of inventory and need to store or manufacture something, go direct lease.
If you have graduated from an accelerator or incubator, PivotDesk might be your best bet.
If you just raised $20 million Series B, it’s your call, but know that if you take more space than you currently need, PivotDesk can help you on the host side.
As always, I’m happy to answer any questions, so never hesitate to email me at email@example.com.