From Coworking Space to Unicorn Status
At the time we were engaged, Pendo was generating significant interest from capital investors, but struggled to manage growth within their shared office space environment. We located a unique space offering substantial room for growth in Downtown Raleigh’s Warehouse District.
Shortly after occupying the new space, Pendo completed two funding rounds that led to an employee growth rate far beyond the initial projections and they would grow out of their new space long before the lease expired. To complete the transition, Pendo looked to us to find a solution to offset the remaining lease obligation at its current offices.
After a $50MM Series D round, it was clear Pendo would need significant room for growth much earlier than anticipated in a market of limited options at that scale.
We introduced a strategy to identify a new space to accommodate rapid growth and continued talent recruitment, but also the flexibility needed as a startup. To accomplish this, we worked closely with an incentives partner and ran a process to align real estate needs with potential state incentives award. Pendo was awarded $10.8MM from state and local governments in North Carolina for a commitment to create more than 600 jobs.
We helped Pendo run a process to identify programming requirements, leverage the market, and a build a case for board approval for the new headquarters. Through this competitive process, we identified a new development in Downtown Raleigh with out-of-market ownership that was eager to land a nationally known startup as an anchor tenant to help brand and better position the project.
Pendo will have an innovative space built out to their specifications in a landmark location with city views and premier building signage. The new space will allow for continued growth with multiple expansion options within the building. Since the term on the lease is below market considering the concessions realized, Pendo has the flexibility needed to stay nimble and adjust as the company continues to grow – all while operating in a first-class space attractive for recruiting top talent and fostering the unique company culture.