247 Workspace has been named the Bay Area’s fastest growing
privately held company
Morgan Hill – As promised, the city has approved an incentive plan to reward 247 Workspace – one of Silicon Valley’s fastest growing privately held companies – for relocating to Morgan Hill’s under-used Madrone Business Park.
In exchange for occupying 42,000 square feet of never-before used space on Madrone Parkway, the city will pay a kickback to the company from its sales tax revenue over a 10-year period.
For its part, the city hopes the burgeoning online furniture company spurs new jobs and money for the local economy – in addition to bringing more prestige to the business climate.
Started in 1998 in Santa Clara, 247 (pronounced twenty-four seven) Workspace has become a top Internet destination for office furniture. The company designs modern-looking chairs, cubicles, desks, tables and lobby furniture for clients all over the world.
Recently 247 Workspace was named one of the 50 fastest growing privately held companies in Silicon Valley by the Silicon Valley/San Jose Business Journal.
Adding to its success story, the company is also ranked among the top three in the Best Places to Work in the Bay Area 2006 survey conducted by the San Francisco Business Times, the Silicon Valley/San Jose Business Journal and the East Bay Business Times.
According to San Francisco Business Times, the 247 is “a high-octane environment” where children play games and do their homework on company computers while parents work nearby.
The move to Morgan Hill allows the company to stretch its legs.
Its previous office in Los Gatos measured just 5,000 square feet, which required the company to lease warehouse space in for its products in Milpitas. As those leases were expiring, 247 Workspace decided to consolidate its facilities, and started to look at other cities where it could relocate.
In June, the company moved its headquarters to Morgan Hill after city officials pitched a deal where a maximum of $800,000 in incentive payments might be made over the next decade. In exchange for the financial reward, the company must make “good faith” efforts to hire Morgan Hill residents and make its facility available for community use.
Last week, the city council unanimously authorized the incentive package.
“Morgan Hill’s a great town,” said CEO Mark Denham, adding several of the company’s 30 employees already lived in Gilroy and were previously commuting to Los Gatos.
Denham said Morgan Hill is a quicker drive for San Jose employees, too.
“Even though it’s farther from San Jose than Los Gatos was, it takes less time to drive because it’s a reverse commute,” he noted.
Tony Burchyns covers Morgan Hill for The Times. Reach him at (408) 779-4106 ext. 201 or tburchyns@morganhilltimes.
