How much should you spend on office space?

Office spend dynamics in a hybrid world

Author

Michael Morgenstern
August 12, 2025

Happy Tuesday Brex Community,

With $6M raised, allocate 8-12% of annual burn to office costs. But think strategically, not transactionally. If you're burning $200K monthly, cap office expenses at $200K-$250K annually, including all-in costs (furniture, utilities, buildout). Consider VC office residencies during your first 12-18 months. Many investors want their spaces buzzing with portfolio energy, offering premium real estate at minimal or no cost while you validate product market fit. Alternatively, form alliances with 2-3 non competing startups to share an 8,000-12,000 sq ft space, cutting per company costs to $75K-$125K annually while building talent density.

In today's talent scarce, relationship driven markets, your office choice becomes a competitive moat. The sharpest founders treat real estate as growth infrastructure. Positioning lease spend to maximize proximity to customer ecosystems, talent corridors, and partner networks rather than optimizing purely for cost. Your location can collapse sales cycles by enabling impromptu customer visits, magnetize A+ talent through proximity and prestige, and unlock serendipitous collaborations with neighboring companies that become valuable growth channels. I've watched founders lease space next to their biggest customer, turning quarterly check-ins into weekly strategy sessions that accelerated product development by months.

If you're navigating office spending, market positioning, or capital efficient growth strategies from seed to growth, we're here to help you scale smartly.

Growing together, Michael Morgenstern 

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Tal Binder is the founder of Gelt 

Gelt is a year-round tax partner for entrepreneurs, business owners, and investors who want more than just filings or one-off advice. Their elite team of CPAs and tax professionals, powered by technology, delivers customized strategies that evolve with your business to reduce tax burdens and build long-term wealth. From proactive tax planning to full-service compliance, they handle the heavy lifting so their clients can focus on growth.

AMBASSADOR POV: Gelt is redefining how high-growth entrepreneurs and investors approach taxes — turning a once-annual headache into a year-round strategic advantage. In a world where every dollar and every decision compounds, the Gelt platform and team ensures clients can scale faster, keep more of what they earn, and navigate complexity with confidence. Investors tracking Gelt will see a market-shaping player building the go-to platform and service for proactive, tech-enabled tax strategy.

 

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