RocketSpace rents space to startups, with a twist

This is an interesting business model. RocketSpace rents space to tech startups, a common enough practice. But instead of offices, or even cubicles, RocketSpace uses long tables, shared within a single company, or between multiple companies. Tight quarters, noisy, with some nice perks.

What RocketSpace, the office rental company he started in San Francisco in a building on its last legs in late 2010, does provide is lots of high-speed Internet access, proximity to well-regarded young companies, amenities like free beer and occasional chats with the likes of Steven A. Ballmer of Microsoft, Dick Costolo of Twitter and the venture capitalist Vinod Khosla.

And RocketSpace is succeeding. By packing tenants into tight quarters, they achieve a 20% rent increase per-square-foot over traditional office space.

Companies that have passed through RocketSpace, either as local start-ups or initial satellite offices, include such tech darlings as Zappos, Uber, Spotify and Kabam, an online gaming company.

I suspect we’ll see this model quickly make its way into other tech markets.