--- title: Real Estate Strategies for Each Stage of Your Company’s Growth description: Octane Preferred Advisor, Savills, walks the reader through an analysis of company development as they begin to grow. image: https://blog.octaneoc.org/hubfs/20181210_MP_0839-min.jpg --- [![Octane](https://blog.octaneoc.org/hubfs/Octane_December2019/Images/Octane.svg)](https://octaneoc.org/) - [Accelerate](https://octaneoc.org/launchpad/) - [LaunchPad SBDC Accelerator](https://octaneoc.org/launchpad/) - [Pitch Presentation Template](https://octaneoc.org/launchpad/#template) - [Our Alumni](https://octaneoc.org/launchpad-alumni/) - [Apply](https://info.octaneoc.org/launchpadapply) - [Grow](https://octaneoc.org/octane-enterprise-solutions/) - [Events](https://octaneoc.org/events-programs/) - [Aesthetics Tech Forum](https://octaneoc.org/aesthetic-technology-summit/) - [Tech Innovation Forum](https://octaneoc.org/tech-innovation-forum/) - [Ophthalmology Tech Forum](https://octaneoc.org/ophthalmology-technology-summit/) - [High Tech Awards](https://octaneoc.org/high-tech-awards/) - [Cardiovascular Tech Summit](https://octaneoc.org/cardiovascular-tech-summit/) - [Medical Innovation Forum](https://octaneoc.org/medtech-innovation-forum/) - [Programs & Calendar](https://octaneoc.org/events-programs/#calendar) - [Partner](https://octaneoc.org/partner/) - [Partner with Us](https://octaneoc.org/partner/) - [Octane Partners](https://octaneoc.org/octane-partners/) - [Become a Member](http://register.octaneoc.org/membership) - [Mission](https://octaneoc.org/mission/) - [What We Do](https://octaneoc.org/mission/) - [Community Initiatives](https://octaneoc.org/octane-foundation-for-innovation/) - [Women Leaders of Octane](https://octaneoc.org/octane-foundation-for-innovation/#women-leaders) - [Non-Profit Accelerator](https://octaneoc.org/octane-foundation-for-innovation/#npa) - [LaunchPad Accelerator](https://octaneoc.org/octane-foundation-for-innovation/#launchpad) - [STEAM Ahead](https://octaneoc.org/octane-foundation-for-innovation/#stem-fellows) - [Next Wave](https://octaneoc.org/octane-foundation-for-innovation/#orange-movement) - [Team](https://octaneoc.org/mission/#team) - [Board & Advisors](https://octaneoc.org/board-advisors/) - [Careers](https://octaneoc.org/careers/) - [News & Blog](https://blog.octaneoc.org/) Latest [Events](https://blog.octaneoc.org/topic/events) [Med Tech](https://blog.octaneoc.org/topic/med-tech) [Tech](https://blog.octaneoc.org/topic/tech) [Innovation](https://blog.octaneoc.org/topic/innovation) [Octane News](https://blog.octaneoc.org/topic/octane-news) ## [Winners Announced - The 2022 High Tech Awards](https://blog.octaneoc.org/hta-2022-winners) by [Natalie Matsumoto](https://blog.octaneoc.org/author/natalie-matsumoto) on September 29, 2022 [Read more](https://blog.octaneoc.org/hta-2022-winners) - CATEGORIES ### Subscribe to Email Updates [Business Resource](https://blog.octaneoc.org/topic/business-resource) | 3 min read # Real Estate Strategies for Each Stage of Your Company’s Growth Written by [Jeff Manley](https://blog.octaneoc.org/author/jeff-manley) - - - When venture capitalists fund an early stage company, they provide capital to see a start-up through various stages, sometimes from seed, to post-seed, to Series A and beyond.  Like venture capital, in real estate, every stage generates different, unique needs for a company.  As a growing company, it is essential to evaluate your current space needs while you plan ahead for future growth. Our Octane Preferred Advisor, [Savills](https://www.savills.com/), analyzes the following five steps of company development as a key part of helping companies navigate their space needs over time:   1. Incubation Stage- Little to No Infrastructure Before the start-up is officially a business with customers and revenue, it usually needs a period of time to develop its business idea, assess its viability, explore the market it wants to enter, develop its sustainable competitive advantage, create intellectual property (if possible) and figure out how to finance its “incubation” or “seed” stage.  Typically, this stage starts in free space, such as a living room or a garage—a space with no infrastructure requirements or other fixed costs. 1. Launch- Minimal Infrastructure This is a risky stage where a company will need to conserve resources and not spend investors’ money unnecessarily, especially if that money has come from “friends and family” as is common. For a company of two to 10 employees, a month-to-month lease in a co-working space such as WeWork, Regus, or other fully serviced office spaces  can be a low-cost solution. Companies that want to protect proprietary information may prefer will need to be careful if they share space and systems. In the initial stage of a company’s lifecycle, however, the rule of thumb is to spend as little money as possible on space. Consider live/work alternatives—your office should be basic, functional and shared, and you should make use of cheap, scalable resources such as cloud computing and non-employee gig economy staff. Companies in their initial stages may believe that a “cool,” standalone office is a key to projecting success, which may be important in attracting tech talent. Don’t overpay for the cool factor in your space, however, because at this stage containing costs is the wiser course, and as your needs change rapidly a flexible work force makes much more sense. . 1. Establishment and Growth- Find a Permanent/ Semi- Permanent Space When the company begins to generate consistent income and is expanding its customer base, improved cash flow, and perhaps additional capital, will be available to cover expenses. This may well be the time for your first move. For a company of 11-20 employees, a good solution is a 12-month lease on a customizable, fully furnished “spec suite,” a pre-built office suite, usually about 1,500-4,000 square feet in size. A sublease can be another way to obtain a furnished space at minimal out-of-pocket cost, but you take the space as you find it and you may not have the option to remain in the space at the end of your lease.  The details of all of these kinds of arrangements is vitally important because at this stage surprises can be painful. 1. Expansion- Look Forward 3 to 5 Years Your start-up has attained a secure place in its industry, with rising revenue levels and an expanding workforce of 21-49 employees, and you have a reasonable level of capital to execute your business plan. At this stage, a company can look at its growth forecast, assess its needs for the next three to five years, and lease a space where it has an opportunity to build out and create its own, unique workspace environment that is congenial to employees, flexible and optimized for future growth. 1. Maturity- Growing Into Your Space Having successfully expanded its business, your company is earning stable profits from year to year. With 50 or more employees, you may still be growing at a fairly fast clip. It’s time to lease a generously sized space the company can “build-to-suit” for further expansion, or even build your own facility based on careful analysis and forecasting.  The landlord will contribute to the build out with what is called a “tenant improvement allowance” (which is negotiable), and your lease will usually be for a term of at least 5 years, and can include options to keep it for longer. Assessing your property needs is as important at the incubation stage as it is once you have developed a mature business.  There are complexities at each stage and peculiarities in each market, so be sure to get unbiased advice before making any commitments.  *Savills is an Octane Preferred Advisor on the Octane Enterprise Solutions platform.* *They are a leader in analyzing space needs for businesses to help set goals and expectations, create solutions, and smartly manage and deploy resources in securing office, R&D, and industrial spaces.  Savills only works for tenants and does not work for landlords, which is important if you want to be sure the advice you get is in your best interests.* For further information and a copy of a comprehensive White Paper on real estate please contact: Jeff Manley Senior Managing Director, Director [jmanley@savills.us](mailto:jmanley@savills.us) [![savills logo ](https://blog.octaneoc.org/hs-fs/hubfs/SAV_Logo_RGB_Original-800x800.png?width=125&name=SAV_Logo_RGB_Original-800x800.png)](https://www.savills.com/)   ### Related Categories [Business Resource](https://blog.octaneoc.org/tag/business-resource) ### [Jeff Manley](https://blog.octaneoc.org/author/jeff-manley) Popular [Start Up](https://blog.octaneoc.org/topic/start-up) [Business Resource](https://blog.octaneoc.org/topic/business-resource) ## [Why Brand Strategy Is So Important For Startups](https://blog.octaneoc.org/why-brand-strategy-is-so-important-for-startups) [Read more](https://blog.octaneoc.org/why-brand-strategy-is-so-important-for-startups) Popular [Business Resource](https://blog.octaneoc.org/topic/business-resource) ## [The Importance of a Human Capital Management Strategy](https://blog.octaneoc.org/the-importance-of-a-human-capital-management-strategy) [Read more](https://blog.octaneoc.org/the-importance-of-a-human-capital-management-strategy) Popular [Orange County](https://blog.octaneoc.org/topic/orange-county) ## [City of Hope: Advancing World-Renowned Cancer Treatment and Research in Orange County](https://blog.octaneoc.org/city-of-hope-advancing-world-renowned-cancer-treatment-and-research-in-orange-county) [Read more](https://blog.octaneoc.org/city-of-hope-advancing-world-renowned-cancer-treatment-and-research-in-orange-county) ## Accelerate Your Capital Funding Strategy LaunchPad is a Top-5 SBDC in the nation, offering pro-bono expertise help you prepare to raise capital.  [Apply to LaunchPad SBDC](https://info.octaneoc.org/launchpadapply) ### Let Us Know What You Thought about this Post. Put your Comment Below. ### You may also like: [Tech](https://blog.octaneoc.org/topic/tech) [Investment](https://blog.octaneoc.org/topic/investment) [Orange County](https://blog.octaneoc.org/topic/orange-county) [Innovation](https://blog.octaneoc.org/topic/innovation) [Business Resource](https://blog.octaneoc.org/topic/business-resource) [Octane News](https://blog.octaneoc.org/topic/octane-news) [Business Accelerator](https://blog.octaneoc.org/topic/business-accelerator) ## [NASDAQ interview with Octane's CEO about Octane's newest initiatives](https://blog.octaneoc.org/nasdaq2022) In a recent interview with Monica Malpass from NASDAQ, Octane’s CEO, Bill Carpou, shared some of the newest initiatives ... [Investment](https://blog.octaneoc.org/topic/investment) [Business Resource](https://blog.octaneoc.org/topic/business-resource) ## [Octane is Recognized as One of The Best Places to Work In Orange County](https://blog.octaneoc.org/bestplacestowork) Octane, which prides itself on its culture, was included in Orange County Business Journal’s 2022 ‘Best Places To Work’. [Investment](https://blog.octaneoc.org/topic/investment) [Business Resource](https://blog.octaneoc.org/topic/business-resource) ## [Octane Announces Partnership with Interlink Markets](https://blog.octaneoc.org/interlink) Octane has launched a strategic partnership with Interlink Markets to better serve the startup ecosystem in Orange Count... ## **Contact Us.**   i[nfo@octaneoc.org](mailto:info@octaneoc.org) 949.330.6564 [Get In Touch](https://octanestaging1.wpengine.com/) © 2020 Octane - - - - - Search for: - [Incubator](https://octaneoc.org/incubator/) - [LaunchPad Accelerator](https://octaneoc.org/launchpad/) - [Growth & Consulting Services](https://octaneoc.org/grow/) - [Events & Programs](https://octaneoc.org/events-programs/) - [Partners](https://octaneoc.org/partner/) - [Our Mission](https://octaneoc.org/mission/) - [News & Blog](https://blog.octaneoc.org/) - [Privacy Policy](https://octaneoc.org/privacy/)