1) $100-200k/yr salary 2) $200-300k/yr fully loaded cost 3) $500k-$5mm/yr value created per employee (rev or market cap or whatever) -- this is actually more like -$huge to +$huge)
Offices cost $7/ft2/mo in Palo Alto, or $2-4/ft2/mo in SF.
A private office is probably 50-100 ft2 more than open plan.
So, we're talking about $100 to $700/mo difference.
I'd personally be willing to pay $500/mo pre-tax to have a private office, vs. a desk in an shared office. Productivity benefits to company are on the order of $10-50k/mo.
Next time I do a startup, I'm doing 3-4 person sized offices for each person (i.e. you have a guest desk, workspace, etc., normally empty), and project areas shared per team, after there are more than just founders.
So at some level of developer pay, N companies are profitable. At N+P, fewer companies are profitable, and at N-P, more. All else being equal.
If we cared as much about our desks as we do about our pay, we'd have more offices, and companies would either make less profit, or there would be fewer companies.
But we don't have offices, because we don't insist on it.
Next time you interview, make that as important as salary.
The cost is approximately zero compared to the costs of sick days and ruined productivity.
Fire extinguishers are expensive. However, they're pretty cheap compared to getting cited by the fire dept/OSHA for not having a fire extinguisher. And they're really cheap compared to the result of a fire that can't be put out.