Mithrl is among a wave of startups coming back to San Francisco and working in person four days or more each week.
Noah Jackson, 27, recently took a job at Tako, a visualization search engine startup, after searching for a software engineering job that offered an office culture. Jackson, who spent almost his entire professional career in the post-Covid world of remote work, wanted to find a job that allowed for in-person collaboration.
Tako, along with other early-stage tech companies, is attempting to return to the pre-Covid days when startups took pride in their digs and limited their use of Zoom. According to CEO Alex Rosenberg, the company is not trying to build a culture that works for everybody, but rather make it work for Tako.
The San Francisco office market remains tepid, with the vacancy rate climbing to 34.9% in the third quarter. However, artificial intelligence (AI) startups are fueling significant leasing activity, with 62% of AI leases signed in the city being for sublease space.
Rents across the city are at their lowest since 2016, making it a good time for entrepreneurs to take on more space at a “screaming deal.” However, the broader market’s recovery largely depends on the decisions made by huge San Francisco tenants like Salesforce and Google.
Zach Tratar, CEO of Embra, was able to snatch up an ideal space for his company through sheer hustle and estimates that the office would have cost his company twice as much before the pandemic. Tratar plans for his employees to come to the office four days a week, with Wednesdays reserved for remote work.
Startups have to be thoughtful about access to public transit while also catering to people who drive, and offering benefits like commuter benefits and free meals can help attract and retain employees. Mithrl, an AI startup, offers commuter benefits and free meals to its employees.
There are limitations to in-person work, including the impact on hiring pools and challenges for parents, people with disabilities, and those with long commutes. However, some companies, like Medra, have seen success with in-person work, and being in-person has helped with recruiting for some companies.
Overall, the current AI renaissance has familiar qualities for veterans of the Bay Area, and startups have to earn their employees’ commutes to the office by catering to their needs and preferences.