Podcast 🎧 - From Overpriced to Undervalued: Why Now is the Time for Startups to Get in on SF's Real Estate Deals

Hey There,

The newest episode of The Startup Growth Podcast is live!

Listen to the episode here.

In this episode, I chat with Reuben Torenberg, First Vice President at CBRE, about the current state of commercial real estate in San Francisco, particularly for startups. Ruben shares his insights on how the market has changed since COVID-19, with vacancy rates jumping from 3% to 37% and average asking rates dropping from $88 to $68 per square foot. He explains the shift from a landlord's market to a tenant's market, offering advice on how startups can navigate finding office space, including working with brokers (which is free for tenants) and considering co-working spaces for smaller teams.

Ruben also discusses the Q1 2025 report, highlighting positive trends such as increased leasing activity and a "flight to quality" as tenants take advantage of lower rates in Class A buildings. He provides guidance on when startups should consider their own dedicated space (typically around 8-10 employees) and offers ballpark monthly rent ranges for different team sizes. Throughout the conversation, Ruben emphasizes the importance of flexibility for growing startups and the benefits of subleases for maintaining that flexibility while accessing fully furnished and equipped spaces.

Key takeaways:

• How Startups Work with Brokers

• Avoiding Common Pitfalls in Leasing Office Space

• Market Changes Pre- and Post-COVID

• Q1 2025 San Francisco Real Estate Market Update

• Advice for Small Startups on Office Space

I hope you find this educational content valuable and can apply it in your business.

David Phillips

Founder & CEO at Fondo

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