Not your typical landlord, RocketSpace rents progressively

Startup companies are occasionally forced to share working space with other companies at RocketSpace.

"Headphones are the new cubicle," Duncan Logan, a commercial landlord, told The New York Times.

Logan is the founder of RocketSpace, a progressive office rental company that doesn't follow the traditional mold.

Logan and his company rent tenants working spaces without doors or walls. Renters work at long tables in, and occasionally share work spaces with, other companies, hence the need for headphones.

Logan started RocketSpace in San Francisco in 2010, and while his company might not offer tenants private cubicles, RocketSpace does provide high-speed Internet, free beer and some motivation to its tenants.

"I was here until 10:30 the other night, and so was the guy at that company, and them over there," Michael Perry told the New York Times, pointing to a pair of tables close to his own at RocketSpace. Kit, his four-person start-up, is trying to use online data so brands can track their most vocal supporters on social media sites. "When I was working alone, I thought I had a billion-dollar idea," Perry added. "Here, everybody thinks they have a billion-dollar idea, and they're hammering away. That's inspiring."

RocketSpace charges $700 to $800 a month for a desk or table space, and it appears be pulling in a 20 percent premium over current office rental prices based on its 580 desks, which are leased by roughly 130 companies.

"RocketSpace is mimicking the environment a lot of tech companies want when they are successful," said Colin Yasukochi, an analyst with CBRE. "Everything is supposed to look like it moves fast and changes easily. Maybe they'll put the tables on rollers someday."

Once a startup builds its employee list to 30 people, that signals a time for the company to move out and look elsewhere.

Companies that have used RocketSpace
RocketSpace has a growing list of clientele, with most either coming in as startups or others looking for initial satellite offices in the area.

Successful companies to utilize RocketSpace include Uber, Zappos, Spotify and Kabam.

"It was amazing — lots of tables, so you can't tell where one company began or ended, a receptionist who didn't know who you were, people talking in whispers because everyone is working so closely together," said Steve Swasey, the head of communications at Kabam. "It's just how our office looks now, even the wires hanging from the ceiling."

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