Move it or lose it

When is it time to move? How Houston's small companies can find their next office space

Finding a new, larger office space is part of the startup growth process. Getty Images

There are a number of ways to measure the stage of growth a company is enjoying: funding, headcount, acquisitions, exit strategy, and more. But one telling indicator that often goes overlooked is the office space they call home.

In the early days of a startup, working out of someone's garage or at a nearby coffee shop, you dream of moving into a coworking space. Such a transition can mean a financial squeeze for some, especially when your prior solution was free. But paying for a space can mark a milestone — it signifies that you've made it to the next chapter. Houston has a number of great options for the many local early-stage startups undertaking this type of move.

Over time, though, as your company continues to grow, this solution may begin to cause strain. There's a big difference between a team of six sharing a room in a WeWork, and a team that's reached double-digits having to manage within a space that it has outgrown. Even external amenities like meeting rooms can become insufficient — as your team evolves, more meetings will be necessary, and the standards and needs at play will shift.

Finding your own private office space in Houston is not a challenge; it requires, however, acknowledging that the time has come to take this next step. Signals that it's time to move out and get your own space typically surface in two ways:

  1. What used to feel like an intimate setting has turned into an untenable situation. People are spending too much time talking about the coworking space and its limits.
  2. And, on the flip side, branding your company identity becomes a topic on your radar. If you find a great software engineer interested in joining your team, they might have some reservations about coming aboard with you if they discover you're sitting in a coworking space rather than your own space.

At SquareFoot, the commercial real estate company I founded in Houston in 2011, I have given special attention to companies looking for their first office space. It can be daunting at first, but our brokers know better than anyone how to be trusted advisors for small business owners searching for their first locations.

The most important question at this stage, we've found, is not which neighborhood they'd like to be in, what their budget is, or what amenities they want. Rather, it's a common growth question: Where do you see yourself in three to five years? By asking this question of CEOs in initial conversations, we can get a better idea of what type of growth they project, and how we can most efficiently find them the right space to accommodate their current needs and future goals.

We see office space as more than segments of larger office buildings. These spaces mean a great deal to the companies that inhabit them. It's our responsibility to fit the right team into the right space, and to advocate and negotiate on their behalf.

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SquareFoot Founder and CEO Jonathan Wasserstrum, who hails from Houston, has worked for over a decade in commercial real estate. Outside of work, Jonathan is interested in the three Bs — bourbon, buffalo wings, and brass bands.

The oil and gas industry has been hit by a trifecta of challenges. This local expert has some of his observations. Getty Images

In the matter of a few weeks, COVID-19 disrupted life across the globe, but the oil and gas industry was hit especially hard with the triple impact.

First, there was the direct impact of COVID-19 on the workforce. Next, there was a dramatic drop in global demand as countries and cities around the world issues travel restrictions. Finally, there was a global increase in oil supply as OPEC cooperation disintegrated.

As energy companies raced to set up response teams to address all three concurrent issues, something that no one was quite prepared for was the speed at which all direct lines of communication for the industry were shutoff. Seemingly overnight, industry conferences and events ground to a halt, corporate offices were reduced to ghost towns, and handshakes were replaced with virtual high fives.

To fill this inability to interact, connect, and collaborate as we used to, my company, Darcy Partners, stood up a series of executive roundtables for the exploration and production community to come together and share ideas on how to approach this unprecedented series of events.

Each week, over 25 executives from various oil and gas operators (and growing) gather virtually to share best practices around COVID-19 response plans, discuss the broader impacts of the turmoil on the industry and learn about innovative technology and process solutions others are implementing to help mitigate the impact of the virus and associated commodity price volatility.

We've seen the priorities of these executives shift and evolve with each phase of COVID-19 and the market impact. In early discussions, the main focus was on taking care of their workforce and what plans were being instituted to help minimize the disruption to operations while also ensuring that no one was exposed to any unnecessary risks. Participants shared best practices and policies they had in place for communication both internally and externally as well as their transition to work-from-home.

At later roundtables, the discussion turned to commodity prices and market response. Although this industry is quite accustomed to the inevitable ups and downs, this time is notably different. The market dynamics during this cycle are far more pronounced than in past downturns – largely due to the concurrent supply and demand imbalances coupled with the broader economic uncertainty. Most operators are taking action by making cuts, and some have already decided to shut-in production. Additionally, the importance of technology and innovation came to the forefront, whether discussing tools to facilitate working from home or remote operations to ensure the continued safe operations in the field.

The future is largely unknown; all of the information and analytics and millions of outcomes being modeled do not create the full picture needed for leaders to make the difficult decisions that are necessary. But there are a few things we know for sure. First, there will be an oil and gas industry on the other side of the current turmoil. Secondly, technology will play an increasingly important role going forward. And, finally, the complex issues the industry is dealing with today can be more effectively understood and managed by coming together to share ideas and best practices.

Nearly 5 years ago, Darcy Partners was founded on the premise that there was a missing link in the oil and gas Industry for the adoption of new technologies. Today, there is a missing link for an entirely different reason. Darcy Partners has rapidly mobilized our vast network of operators, technology innovators, investors, and thought leaders to come together and create a shared level of certainty, in an entirely uncertain world. To help leaders make the decisions that must be made and prepare for a new future, one that might not have been expected, but one that the industry will evolve to succeed in.

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David Wishnow is the head of energy technology identification and relationship management at Houston-based Darcy Partners.