SaaS Innovator Optimizely Inc. Signs 55,977-sf Lease for New SOMA HQ

Lease the latest milestone in long-term friendship between Optimizely founder Dan Siroker and Cushman & Wakefield broker Jon Dishotsky

SAN FRANCISCO, CA – April 16, 2013 – A relationship that began on a Palo Alto high school football field during the dot.com boom of the late 1990’s has worked its way through San Francisco’s current tech boom and into a new SOMA headquarters.

[contextly_sidebar id=”e344018c43e760511fcf61485a1e9666″]Software as a Service (“SaaS”) startup Optimizely Inc. announced April 10 that the company has signed a new 55,977-square foot lease at 631 Howard Street in San Francisco’s South of Market district. The lease includes immediate occupation of 36,000 square feet of tri-level space with an additional 19,977-square foot must-take extension in 2014. The combined leases will eventually provide space for up to 450 employees. The leasing deal was brokered by Cushman & Wakefield’s Jon Dishotsky, a former high school football teammate and friend of one of Optimizely’s founders, Dan Siroker.

Dishotsky, who specializes in representing technology clients of all sizes, has worked closely with Optimizely since the company’s earliest days operating out of a small conference room with only four employees at 185 Berry Street in San Francisco. Since then, Dishotsky has helped Optimizely find office space in locations ranging from a live/work loft on 3rd Street to the company’s current home in the historic House of Shields building on New Montgomery Street in downtown San Francisco. (For a history , please see the attached press release.)

“A year ago we were a team of 13, having just moved into a new office in downtown San Francisco,” said Siroker in a statement. “We imagined we had enough space to last us for a while – we were wrong.” Siroker noted in a blog post that Optimizely grew out of its current 7,000-square foot office space after the first year of a three year lease. That’s why the company opted for a larger office, which it plans to fill completely by the end of the six year lease. The company has 68 current employees and is in the process of hiring up to 50 additional employees this quarter. Optimizely plans to occupy the new Howard Street location in early July 2013.

Optimizely, which was founded by Siroker and Pete Koomen, two former Google product managers, emerged from Y Combinator in 2010 and became cash-flow positive in 2011, said Siroker. The new Howard Street lease caps off an extraordinary period of success and growth for the company, which also announced April 10 that it has raised $28 million in a round of funding led by Benchmark Capital, with participation by Bain Capital Ventures, Battery Ventures, InterWest Partners, and Google Ventures. Optimizely announced that Peter Fenton from Benchmark joined the company’s board of directors. Fenton is best known for his work on a broad range of exemplary technology companies, including Yelp, Twitter, New Relic and ZenDesk.

“Even in high school, I knew Dan was going to doing something big,” said Dishotsky. “I remember that well before the iPod, he constructed a MacGyver-style mp3 player in the center console of his car. Once after football practice I sat in shock as he used a keypad to select songs listed on a piece of paper – I think he chose Britney Spears. The fact that Dan and Optimizely are now leaders in the Silicon Valley’s current wave of enterprise disruption is much less a shock.”

“I’m really proud to call Optimizely a client and I’ve become close friends with so many employees now,” added Dishotsky, “It’s thrilling to be part of the ever-evolving tech industry in San Francisco and personally rewarding to see a company and people I believe in thrive and grow. I can’t wait to witness Optimizely’s next chapter.”

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