Commercial Lease Rates in Austin Tx

Each quarter Austin commercial lease rates increase or decrease depending on occupancy & vacancy rates, job growth, demand, market conditions, etc.  Our goal is to help keep you updated so you are equipped with enough information and resources make the best commercial leasing decision for your business.

Click the links below to find out the average commerical lease rates in Austin, Tx.

Austin Office Lease Rates

Austin Retail Lease Rates

Austin Warehouse Lease Rates

Need help finding space?  Our local experts can help you search for, select, and negotiate the right space for your business.  To get started just fill out our form or call 512-861-0525

Types of Commercial Real Estate

Not sure of the Type of Space you need? Whether you need to lease office space, retail, medical, or industrial/warehouse, we can find just the spot that fits both your business and your budget.

Office Space

Office space comes in all shapes and sizes. Whether you’re looking for an old house zoned for commercial office use, a traditional office in the suburbs, flexible space to service your office and warehouse space needs, or a class A office in downtown Austin, we can help find the right fit for your business.

Retail Space

When leasing Retail Space one must research and consider many other factors than when leasing other types of commercial space. The cheapest space will not always be the most suited for your business so don’t just sign a lease on the first bargain you see. Things such as demographics, traffic patterns, your competition, visibility needs, etc. must be considered to determine whether a location is right for you.

Medical Offices

Finding the right medical office space can be imperative to the success of your medical practice. Chances are, you need to be close to a hospital or medical facility that treats similar patients or that you can get referrals from. Whether you’d like to be downtown, closest to the largest medical hospitals in Austin, or in a thriving city such as Lakeway, TX, we can help you find the perfect medical office location. If you are a dentist or a chiropractor needing to lease space there are plenty of options for you in medical buildings or in retail locations throughout the Austin Metro area.

Warehouse Space

Industrial / Warehouse space can be used for many purposes. If your business requires flexible working space, has loading and unloading requirements, needs a combination of office/warehouse, or you’re just looking for office space that has lower rates, leasing warehouse space might be the best fit for your business.

Need Commerical Real Estate in Austin? We Can Help!

Austin Tenant Advisors specializes in helping businesses find the best office space for rent, retail space, and warehouse space in Austin, TX.  Our specialty is tenant representation and we will help you research and select the best properties (location, layout and price that fits your needs), facilitate lease negotiations to ensure you get the best deal, and assist with relocation and move-in.

Austin Office Space and Commercial Real Estate Search

Call 512-861-0525 or email us your business space needs. After learning more about your needs we will research, identify and prepare a list of every available commercial property listing that meets your specific criteria. Pictures, floorplans, and lease rate info will be emailed to you within hours of contact.

Free Austin Office Space Search

You don’t pay a penny for our service, the landlord does, and there’s no obligation so why wait to contact us to see if we can assist with your business needs?

What Landlords Require of Startups to Lease Office Space

Every day new startup companies are being created and end up looking for office space to lease.  The challenge for startups who want to lease office space is that early on their expenses typically exceed their revenue and they do not have a business track record that makes landlords confident enough to lease them space.  Should landlords take the risk and lease office space to startups, hoping that they will make enough money to pay their rent?

Historically the failure rate of 1 year old companies is 28.5%, according to the US Census Bureau, and if startups have less than 5 employees the failure rate climbs to 34%.  In order for Landlords to reduce their risk of leasing to startups they will carefully check to ensure that you have strong financials and have the ability to pay monthly  rent for the duration of the term.

Below are a few things that Landlords will require of startups when leasing office space

 1.  Growth in Revenue and Profitability – Landlords want to see that a startup has enough revenue to pay the rent.  They will typically look at your net revenues and EBITDA (Earnings Before Interest, Taxes, Depreciation, & Amortization).  If EBITDA is positive and exceeds monthly rent then landlords will know that you don’t rely on investor money or borrowed funds.  If your startup operates at a loss then landlords will want to understand your monthly cash burn rate and see how long your capital can cover losses.  This can be done by subtracting liabilities from assets and divide by monthly operating losses.

2.  Liquidity Ratio that is Above Average – Landlords want to see that you have the liquidity to pay off your rent and prefer that your assets exceed your liabilities.

3.  More than 5 Employees – As stated above startup failure rate averages 34% for companies with less than 5 employees.  Landlords like to know that you can afford to hire more than 5 employees.

4.  Strong Financials – Landlords like to see at least 2 years of accurate financials.  Financial projections are great however can be easily made up, and landlords will more than likely not understand your industry enough to know if they are realistic.

5.  Debt to Equity Ratio that is Below Industry Standards – Landlords like to see that your liabilities are less than your equity.  This shows them that you have the ability to borrow money in the event your industry or company experiences a downturn.

6.  Industry that is Growing and Profitable – It’s helpful for landlords to know if your industry is healthy, profitable, and growing.  Knowing that others are succeeding in your industry will help your case as a startup.

7.  Strong Revenues and EBITDA – Landlords want to make sure you can afford the proposed rent.  They will compare your EBITDA to rent and your sales to rent to some of your industry peers.  If the rent expenses exceed your EBITDA or revenues then you will need to prove that you have enough liquid assets to cover rent.

8.  Individual Guarantees or Letter of Credit – After a Landlord has reviewed your startup, company financials, your industry, etc., and still does not feel comfortable leasing you space they will ask to see your personal or guarantor financials, or require that you get a letter of credit.

9.  Take Space “As is” – In many cases if a landlord still sees you as a risk they may lease you space however would only do so on an “as is” basis.  This means they would not put any money into tenant improvements.

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