Facebook's Company Town
Social Network Is Building a 394-Unit Housing Community Near Its Offices
Facebook
Renderings of Facebook's planned Anton Menlo Community housing.
The social network said this week it is working with a local developer to build a $120 million, 394-unit housing community within walking distance of its offices. Called Anton Menlo, the 630,000 square-foot rental property will include everything from a sports bar to a doggy day care.
Facebook Inc.'s sprawling campus in Menlo
Park, Calif., is so full of cushy perks that some employees may never
want to go home. Soon, they'll have that option. Reed Albergotti has
details on Lunch Break. Photo: Facebook
A Facebook spokeswoman said employee retention wasn't a major factor in the real estate push. "We're certainly excited to have more housing options closer to campus, but we believe that people work at Facebook because what they do is rewarding and they believe in our mission," she said.
The Facebook Life
Amenities for residents of an apartment building Facebook is constructing near its campus:- On-site cafe, convenience store, and sports pub
- Bicycle repair shop with onsite storage
- Pet spa with doggy day care, pet walking services, dog park
- Resort-inspired pool, spa and cabana area
- Indoor/outdoor wellness, yoga and training facility with personal training
- Rooftop entertainment deck with three-themed areas
Real estate prices are skyrocketing in Silicon Valley, and in San Francisco, up 24% in the fourth quarter of 2012 in the Bay Area, according to DataQuick, MDA.T -1.33% a real-estate data firm.
The development conjures up memories of so-called "company towns" at the turn of the 20th century, where American factory workers lived in communities owned by their employer and were provided housing, health care, law enforcement, church and just about every other service necessary.
Spending more time in the clutches of the company sphere isn't necessarily positive. One reason the old company towns eventually disappeared was that they could be overbearing to workers. In the 2013 version, the downside could be unspoken expectations that employees always be working.
Facebook's plans are still a far cry from those steelworker and mining company towns from a century ago. Facebook employees aren't expected to work there for their entire lives. And the new development can only house a maximum of about 10% of its Menlo Park employees.
But the move speaks to how competition is reshaping the role of corporate culture in the tech industry.
"Silicon Valley is in many ways the antithesis of the company town," said Ajay Agrawal, a professor of entrepreneurship at University of Toronto. In today's tech industry, Mr. Agrawal says, employees feel less tied to a company, and more tied to the geographical location and industry. They're more likely to switch companies and collaborate on ideas with people outside their own corporation.
One of the downsides of the Silicon Valley model, Mr. Agrawal says, is that if companies believe their employees will likely leave, they won't invest as much in their lives or their development.
"There may be some optimal level between the extreme company town," he says, "and Silicon Valley, where everyone is moving companies."
To build the housing, Facebook's "amenities team" worked with developer St. Anton Partners, a San Francisco Bay area, multi-family real estate developer, to create an environment that mirrors the atmosphere of its corporate campus, where employees are encouraged to mingle and share ideas.
Facebook
Rendering of path between the apartments and Facebook's campus.
"The beauty of this thing is that it's extremely close to our campus," said John Tenanes, Facebook's director of real estate and an architect involved in the planning. "It's a five-minute bike ride" along a dedicated path that runs along the San Francisco bay, he said. "You don't even have to put on the brakes."
One of Facebook's corporate goals is to take care of as many aspects of its employees lives as possible. They don't have to worry about transportation—there's a bus for that. Laundry and dry cleaning? Check. Hairstylists, woodworking classes, bike maintenance. Check.
At Facebook, the company's headquarters are supposed to feel more like a college campus than an office.
The 56-acre parcel, which it moved to in December 2011, will soon be connected to a new wing, designed by architect Frank Gehry. There is a winding asphalt road that runs through the center of campus where employees glide through on bicycles.
Throughout the workday, programmers bond with advertising product developers over free lattes or ice cream, walking around the sculptures and shops, or lounging on sun-drenched grassy knolls and park benches.
There is a company game day, where employees run the three-legged race. At night, employees watch movies on a giant, stadium-style outdoor television screen that looms over an open plaza in the middle of campus.
Lauryn Hale, a Harvard Business School graduate who was hired by Facebook in 2010, said all the amenities take some stress out of the daily job and allow her to think more creatively.
Her favorite thing to do is have a "walking meeting" with another employee, but only after grabbing a frozen yogurt at the sweet shop. "I probably love that too much" she says.
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