SFCED | San Francisco Center for Economic Development

Why Startups are Ditching Silicon Valley for San Francisco

A Mountain View-based startup called Talkdesk just grabbed a chunk of space in San Francisco’s newest tower last week.

During a call to chief operating officer Gadi Shamia I congratulated him on signing the lease. That made him laugh.

“Congratulations? Congratulations on spending a ton of money, I suppose,” said Shamia, whose company builds call-center software users can access through a web browser.

Yes, even a small 13,000 square feet in the 535 Mission St.– or any new or well-located building in San Francisco – comes at a high price. (Shamia wouldn’t disclose the tab, but it likely comes out to nearly $1 million a year in rent.)

Shamia immediately said that the costs of moving out of Talkdesk’s “cramped” Mountain View office to share a building with big names like WeWork and Trulia comes with a big benefit: having room to grow.

“We want to be in an environment where you go for coffee and meet an employee from Zendesk or Slack. We just get to meet with them and have a chat and learn something new,” said Shamia. “Being around other startups is better than being isolated in a business park.”

Read more: San Francisco Business Times Why startups are ditching Silicon Valley for San Francisco

Why Startups are Ditching Silicon Valley for SF