2009/1/23 David Levy lifeisunfair@gmail.com:
Erik Moeller wrote:
[snip]
- We've suggested to Wikia a fair market rate based on the average of
the other options we obtained;
- After some negotiation, Wikia accepted. Weighing other pros and cons
of the space against other options, we decided to go with Wikia;
To clarify, did Wikia match the lowest bid?
No, and we didn't ask them to. We obtained about a dozen bids, ranging from about $150 to $565 per person/month. Obviously all those spaces had different characteristics. Wikia was in the running because it had desirable characteristics from the start (high proximity, shared kitchen access, shared speakerphone use, shared Internet connection, etc.). We used averaging as a way to arrive at a fair market rate to neither advantage nor disadvantage Wikia when suggesting a rate. The averaging also resulted in a rate that was roughly equivalent to the most comparable space in the running.
Wikia, too, looked at different potential tenants for the space. The final rate we negotiated was slightly higher than the most comparable option we looked at (and considered very seriously, including a site visit). However, the relative advantages of the Wikia space compensated for that. We were quite careful not to draw any special advantages from our relationship to Wikia, and Wikia was careful to treat us in our negotiations like any other tenant. While we're likely to work with them on technical aspects of the projects, we were also careful to keep that completely separate.