Today’s Menu ☕️

• El Segundo Tech Breakfast Club (May 27th)

• SF Tech Breakfast Club for AI Leaders (May 28th)

• Rho

• Interview with Arash (Office Space Whisperer)

👋 Hi, Breakfast Club Members!

Thank you to Rho for sponsoring today’s newsletter. Extend your runway, keep spend controlled, and automate finance busywork with Rho.

I’m catching my breath post NYC Tech Breakfast Club. Thank you to Kendra Schultz and the rest of the crew. Vibe wise, NYC feels amazing right now. Everything is moving so fast and there’s lots to celebrate.

Scroll down as I catch up with Arash Sadighi from Venture Commercial about navigating the insane Manhattan office market. Arash is a long time supporter of Tech Breakfast Club (and also a great hang).

If I were a founder searching for office space for my fast-growing startup, I’d be stressed about the office market. But since I’m a lawyer who flies around the country hosting free breakfast events for founders and VCs, I find it entertaining.

Job Openings:
Friend of Tech Breakfast Club, Petra Labs (AI Search Startup that's growing insanely fast), is looking to hire for growth marketing and ops roles. This is a great way to get meaningful equity in (what I think) will be an awesome company.

Resources:
-Clerky offers a $100 discount for TBC Members on their formation packet. Reply to the newsletter and I’ll send you an invite
-Fixing the YC SAFE: Reply to the newsletter and I’ll send you a redline for the YC Postmoney SAFE that can save founders millions in dilution

Tech Breakfast Club Events

El Segundo Tech Breakfast Club (Wednesday, May 27th)
Co-hosted with Jacques Sisteron (Partner at Upfront) and the Harbinger Team

SF Teach Breakfast Club for AI Leaders (Thursday, May 28th)
Co-hosted with Baseten

Tech Breakfast Club 🤝 Rho

Time to upgrade your business banking?

Arash Sadighi on the Battle for Manhattan Office Space

You mentioned you’ve never seen a market like this in 10 years—what’s different right now?
I think I’d have to say speed and volume. Both from the perspective of the amount of real estate that’s being gobbled up by AI companies and just how quickly they’re growing!  I’ve seen tech go through a few cycles, whether it was SaaS, e-commerce, crypto, etc. and can’t recall a flurry of activity like the one we’re going through right now. AI startups are all competing for the best offices to help them attract the best talent and they’re doing it faster than any industry has done before. 

To prove the point, here’s a surprising stat: about 30% of all tech-related office leasing deals last year were AI companies, and that number is growing so fast that AI companies have already surpassed all the leasing they did in 2025 in just the first quarter of 2026.

The office market just seems to be moving faster all around
Yep, companies are growing—and committing—faster than ever. We’re seeing startups expand and relocate multiple times in a single year - much more frequently than ever before in my career. That kind of pace just wasn’t common before.

The other piece is the so-called flight to quality.  Even early stage startups are looking to premium spaces to help attract and retain talent. That means better buildings, better amenities, better design—spaces people actually want to be in.

The office market was dead for so long. I guess it still is at the lower end. For the super premium spaces are you seeing any vacancy?
During COVID, there was around 21% vacancy, which was historically high. Every year since then, we have clawed back that number. Right now, we are hovering around 14%, but once you narrow it down to “trophy” or highly desirable submarkets—great location, great building, close to transit—the availability drops significantly. That number is probably closer to 7 or 8% - maybe even less.  

So many of our clients are surprised that there aren’t dozens of great options but once you filter things down, it gets pretty narrow.

Let’s say I just raised a $40M Series A—what kind of office should I be thinking about?
Well, you raised a Series A so you’re smart enough not to break the bank on office space, but you are thinking about flexibility, efficiency, value, and accessibility.  Something nice in a prime location, with great light, and with minimal headache… aka furnished and ready. That’s the kind of space my firm really focuses on day in and day out.  

You should also be ready for competition. Many founders still think they have leverage like they did right after COVID—but the reality now is very different. The moment a space hits the market, it’s a free for all. I was just talking to a landlord recently for a 3,000 square foot small space near Union Square, and they had 11 showings in two days, with five offers over market. That’s how competitive it is. 

What about earlier-stage founders—pre-seed or seed, with a team of say, eight or nine people?
Flexibility used to be everything at that stage. Most teams with fewer than 10 people should probably start with a coworking option that allows them to not worry about space and instead focus on their business. Between WeWork, Industrious, Malin, Regus, and other coworking companies, there’s something for everyone.

That said, I’m seeing more and more seed stage companies put a major emphasis on having their own space. If you pick maybe a slightly depressing coworking location where no one is grinding and half the fishbowl office suites are empty, that’s not exactly getting your team charged up. Suddenly getting your own space where the team sets the pace is a lot more interesting. Seeing a lot more of that to be honest. 

Give me some parting advice - what should a founder take away from this conversation?
That finding an office is the one thing AI can’t help with yet so pick great partners to do the heavy lifting. Joking aside, founders should know that a little planning goes a long way to getting a great result. Real estate in NYC is stuck in the stone ages so while tech companies are moving at the speed of light, that’s not the case for finding a place to build. Give yourself time, have a great understanding of your needs, and work with the right team to get you across the finish line. There’s about 500 million square feet of space in Manhattan alone, so everyone will have a place to build. You just don’t want to be flat footed or working with the wrong partners when the time comes.   

About Morgan Barrett:
Morgan is the creator of Tech Breakfast Club. He hosts breakfast meetups in NYC, LA, SF (and occasionally Austin, Miami, Boston) that bring together the best founders and investors.

Morgan is also a Startup Lawyer at Optimal, an elite lean boutique startup law firm repping clients funded by a16z, Sequoia, Kleiner, Accel, and countless other VCs. He works with clients from formation to exit, in collaboration with Optimal’s partners.