Equity or Rent?

“Lease –> same effective grant as your vp of engineering ”
They are spending $1.3M unnecessarily over 2 years (10k sf x $65/sf) so that by yr 3 they have room to grow for years 4 and 5…  and will have a disposition cost of $1.5M if they need to dump it in year 3 because they don’t hire those folks.
XYz is unusual because they’ve raised so much so early but even still… this is 3% of their raise… assuming a median dilution rate of a series A of 35%, they are effectively giving 1% of their company to the landlord and their broker by wasting this balance sheet money.
If the company had raised only $25M, this would have been 4% of their company!