Slicing Pie

            Facilities

            These days, there is plenty of unused office and warehouse space that startups can move into. Most startups are willing to put up with less-than-perfect conditions so there are lots of choices.

            If someone contributes office or warehouse space, they would receive slices instead of rent. The fair market value is equal to the amount of money the space would command on the open market if there was a willing tenant.

            It’s important to note that the startup should only pay (in slices) for the space that is needed for the startup. If the landlord gives them 20 offices and they only need four, they should only have to pay for four. 

            Fair Market Value = Market Rate Rent For Space Used

            Updated: 04 Apr 2016 11:22 AM
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