Something's terribly wrong, on your side! Your main challenge is not salary or office space, it's your interactions with your boss. You need to make sure he knows what you are doing, what you plan to do, what's your career goals.
You need to know if you are doing what he wanted, if you are on track for your career progress, if you are meeting his expectations. Work hard without letting anybody know will get you nowhere. In fact, you don't even know what you are working on is your boss' priority. Write down your concerns, thoughts, talk to your boss, make your work one of the focal points in the big picture.