Bee Cave Tx Whole Foods Retail Center Grand Opening was Busy!

admin — Wed, 16 May 2012 22:03:59 +0000

Bee Cave, Tx just got its own Whole Foods retail center! Today was the grand opening and man was it busy! The foot print seems a little smaller than other Whole Foods as walking through the isles was very difficult because of all the people. Hopefully it won’t always be that crowded . I have never seen the parking lot of the Hill Country Galleria that packed.

Whole Foods doesn’t put a store just anywhere so that tells you their confidence in the growth of this city. Residents in Bee Cave are excited about having the store here so I’m pretty sure it will do well. Other retailers in the Galleria should also benefit and take advantage of the traffic that it will draw.

This is a win win for everyone in the Bee Caves community. The city is poised for growth and having Whole Foods here is another step towards that goal. Over the next few years I expect to see other popular retail stores follow suit.

The Importance of Using a Tenant Representative for Your Lease Renewal

admin — Mon, 14 May 2012 16:58:12 +0000

One of the biggest mistakes tenants can make when wanting to renew their office lease at the end of their current term is failing to consider alternative options for office space. Here is how tenant representation services can help save you time and money when deciding to re-new your rental space.

At the end of the day, the overall goal when choosing to re-new your lease should be to have as much negotiating leverage as possible. Tenant representatives not only know the real estate market, they serve as your chief negotiator in the leasing process. They are working in your best interest to find you the best deal out there. The landlord however, is concerned with what is best for them and could care less how much money you save on your lease. More importantly, when a landlord gets a hunch that you are planning to re-new your lease without seeking alternatives, you have lost all leverage in lease negotiation. By doing this, you are basically letting the landlord know that they have no competition in gaining your business and which gives them no incentive to work in your favor for lease negotiation. A tenant representative will provide you with both market research and their negotiation skills to create competition for your landlord, keeping the ball in your court. Best of all, tenant representation is free to you so can stay in your current office space, save money, and devote more of your time to your business. What a concept!

Q1 2012 Austin Industrial & Warehouse Market Update

admin — Fri, 11 May 2012 20:27:13 +0000

Here is the market update for Austin Industrial space for the first quarter of 2012. Vacancy rates decreased to 10.9% in the first quarter of 2012, down from 11.3% in Q4 2011, and 12.8% this time last year. This marks the fifth consecutive quarter in which vacancy rates have trended downwards. Overall rental rates for the Austin Market rose to $6.78 sf before operating expenses (property taxes, insurance, and utilities). Rates are up from $6.72 sf in Q4 2011, but down from $6.82 sf, where they were this time last year. During Q1 2012, 72,000 sf of new industrial product was delivered to the Austin Market, along with 29,921 sf that remain under construction.

A tip to business owners: If you are thinking of options for office space but are indifferent on whether to be in a traditional office, look into FLEX space. We have seen numerous companies transform industrial space to give them the same amount of office flare as traditional office space. Better yet, FLEX space could save you 30-50% on your monthly rental budget in some cases while still meeting your office space requirements.

Listed below are some other rental rates for industrial space throughout the area. For more information on industrial space or warehouse in Austin, give us a call at 512-861-0525

Austin Average- $6.78
Austin Warehouse Average- $5.98
Austin FLEX Average – $8.72

Cedar Park- $10.90
Central- $7.76
East- $6.07
Far Northwest- $7.92
Northwest- $5.87
Round Rock- $7.34
Southwest- $10.39

Austin Ranked Best City for Small Businesses 2012!

admin — Mon, 07 May 2012 21:54:41 +0000

The Business Journal just named Austin the best city in America for small business in 2012! This marks the third year in a row that Austin has won in this category, based off of a 6-part formula that they have created to analyze the business climates for cities across the country. Cities are judged based off of their five year growth rate, concentration of small businesses per 1,000 citizens, the yearly change in that concentration, a one and five year employment growth rate and the annual growth rate for the number of small businesses in the city. In the last five years Austin has also ranked 2^nd in the U.S. in population growth and private sector growth with increases of 18.1% and 6.3% respectfully. With an entrepreneurial spirit and help from a proactive City Council, Austin remains to be a national beacon for originality and innovation. Whether it be bringing your business to life in your Austin Office Space or introducing delicious new food to the city in retail space throught the Area, small business continues to thrive. Big thanks to all of the small business owners who keep the Austin heart pumping! Now, if we could only get a professional sports team!

Other regional finalists include Pittsburgh, Minneapolis-St. Paul, and Salt Lake City and runner-ups in the South region include Oklahoma City and Houston.

For information on Austin Office space for rent for your small business give us a call at 512-861-0525

Find Austin Office Space – Calculating the Amount of SF for Your Office Space

admin — Fri, 04 May 2012 20:03:51 +0000

Here is another question that we come across frequently: “How many square feet do I need per person in my Austin office space?” There are a couple of things to take into consideration when calculating the amount of space necessary for every person including your desired space layout and the parking ratio of the building. Here is how they come into play when determining this number:

The first scenario will deal with a building where the parking ratio is an issue. Typically, parking ratios for office space range from 3.3-4/1000, meaning you are allotted this many parking spaces for every thousand rentable square feet you are occupying.

Example 1:

Square feet: 1,000
Employees: 4
Parking ratio: 4/1000
Result: You could lease this space because it meets the parking requirement

Example 2:

Square feet: 1,000
Employees: 5
Parking ratio: 4/1000
Result: You will need to lease more space in order to have enough parking

In some scenarios the parking ratio is not an issue. This gives the tenant some room to play based on the layout of the space and in some cases will allow the tenant to fit more employees into a smaller space. The average amount of space per person in an office with cubicles ranges from 175-250 square feet and 200-300 in a space with offices

With that said, a software company with space that will primarily be cubicles could fit in 5 or maybe even six people into a 1,000 sf office where the parking ratio is not an issue.

Likewise, a law firm whose office will primarily be hard walled offices will be able to fit 3-4 people in a 1,000 sf office based on the larger amount of space needed per employee.

For more information on calculating your space requirements or finding Austin office space for lease give us a call at 512-861-0525.

Q1 2012 Austin Retail Market Update

admin — Fri, 13 Apr 2012 02:45:53 +0000

The Q1 2012 Austin Retail Market Statistics have arrived and show that the market is still on the upswing. Vacancy rates for Austin retail space dropped slightly this quarter to 5.5%, down from 5.6% last quarter and 5.7% this time last year. Average rental rates for the Austin area shot up to $18.42 SF before the inclusion of operating expenses (property taxes, insurance, and utilities). This number is up from $18.01 in the previous quarter. There was 106,829 sf of retail space introduced to the market and 432,994 that remains under construction this quarter. As vacancy rates continue to decrease and space becomes more limited, we suggest starting early on finding suitable options for your Austin Retail Space. Since landlords are not struggling to secure tenants into space they now have the ability to be more selective, meaning less negotiating power for tenants to receive concessions and tenant allowances. In the meantime, expect vacancy rates to continue to decrease and rental rates to increase.

Here are some other figures that help paint the picture for Retail Lease Rates in the Austin market. Keep in mind that these rates do not account for operating expenses ( see above) which are passed through to tenants and range from $6-$10 SF. Expect to pay anywhere from $28-$36 SF for retail space in the Austin Area.

Austin Average- $18.42
Downtown- $26.31
Cedar Park-$16.37
Central- $16.63
Far Northwest- $17.30
Northwest- $23.41
Round Rock- $17.63
Southwest- $22.06

For more information about leasing Retail Space in Austin give us a call at 512-861-0525

Q1 2012 Austin Office Market Report

admin — Fri, 13 Apr 2012 02:44:22 +0000

Q1 2012 reports are out and the Austin Office Space trend continues. This marks the eight consecutive quarter in which Austin Office vacancy rates have dropped, now reaching 10.8%. This is the lowest that vacancy rates have been since 2006. The Austin Office Market continues to strengthen as large blocks of space continue to get leased and as more companies are on the move. Our advice to you is that if you are nearing lease expiration, begin researching and finding suitable options for your new Austin Office Lease while time is on your side. As vacancy rates continue to decrease, landlords will have the upper hand in lease negotiations so you can save time and money by acting now instead of waiting for vacancy rates to decline and rental rates to increase.

Vacancy rates at the end of Q1 2012 continued to decline to10.8 %, down from 11.6% in Q4 2011 and 13.4% in Q1 2011. Average Office Renal Rates (all classes) at the end of Q1 2012 were $24.76 psf, slightly down from $24.77 the previous quarter.

Other Average Office Lease Rates in Austin, TX

Class A- $29.40
Class B- $21.63
Class C- $17.88
Downtown- $33.60
Suburban Areas- $23.38
Downtown Class A- $37.30
Suburban Class A- $27.31

If you are interested in learning about other Austin office information give us a call at 512-861-0525

How to Calculate the Monthly Cost of Renting Office Space for Lease

admin — Sun, 08 Apr 2012 00:34:16 +0000

One of the main decision making factors that determine which office space businesses choose to rent is cost. However, we often get asked the question, “How do I calculate the monthly cost of renting office space for lease?” While the calculation is simple, it can be confusing sometimes as some landlords tend to quote rental rates differently than others.

For example one landlord may quote $26 SF gross and another may quote a base rate of $14 SF + $12 NNN. At the end of the day all you care about is what your total monthly business space rental costs are. While there are a lot of other factors to consider below will give you the down and dirty on how to calculate the monthly office space rental cost for your business.

Calculating your monthly office lease amount involves 3 things:
1. The size (in square feet) of the office space you are about to lease (e.g. 2,400 SF)
2. The landlord’s asking lease rate. Could be quoted as a gross lease (e.g. $26 SF) or a NNN lease (e.g. $14 SF+ $12 NNN SF). More about NNN (aka operating expenses later).
3. The number 12 (number of months in one year)

Below are a couple of examples on how to calculate the monthly cost of renting office space for lease.

Office Example #1 – Gross Rental Rate
Square footage of Office Property = 2,400 SF
Quoted Gross Rental Rate = $26 SF/Yr
Estimated operating expenses = already included in gross rental rate
Total asking lease rate = $26 SF/Yr
Yearly Rent = 2,400 x $26 = $62,400
Monthly Rent = $62,400 / 12 = $5,200 per month

Office Example #2 – Base Rate + NNN (operating expenses)
Square footage of Office Property = 2,400 SF
Quoted Base Rental Rate = $14 SF/Yr
Estimated operating expenses (NNN) = $12 SF/Yr
Total asking lease rate = $26 SF/Yr
Yearly Rent = 2,400 x $26 = $62,400
Monthly Rent = $62,400 / 12 = $5,200 per month

To get more help check out one of our past blogs that shared a few tools to help calculate office space needs and lease costs. If you need additional help with your commercial property lease needs feel free to give us a call.

How to Calculate the Monthly Cost of Renting Retail Space for Lease

admin — Sat, 07 Apr 2012 19:04:44 +0000

One of the most important factors to consider when determining which retail space you want to rent for your business is monthly cost, however how do you calculate that?

Calculating your monthly retail lease amount involves 3 things:
1. The size (in square feet) of the space you are about to lease (e.g. 1,500 SF)
2. The landlord’s asking base lease rate and estimated operating expenses (e.g. $25 SF+ $7 NNN SF)
3. The number 12 (number of months in one year)

Landlords of most retail properties typically require that their tenant’s pay both a base rental rate and their pro rata share of operating expenses (aka NNN or CAM). I will explain more about operating expenses, NNN, and CAM in another session.

Below are a couple of examples on how to calculate the monthly cost of renting retail space for lease.

Retail Example #1
Square footage of Retail Property = 1,500 SF
Quoted Base Rental Rate = $25 SF/Yr
Estimated operating expenses (NNN) = $7 SF/Yr
Total asking lease rate = $32 SF/Yr
Yearly Rent = 1,500 x $32 = $48,000
Monthly Rent = $48,000 / 12 = $4,000 per month

Retail Example #2
Square footage of Retail Property = 3,000 SF
Quoted Base Rental Rate = $30 SF/Yr
Estimated operating expenses (NNN) = $9 SF/Yr
Total asking lease rate = $39 SF/Yr
Yearly Rent = $117,000
Monthly Rent =$117,000 / 12 = $9,750 per month

Retail space is typically more expensive than traditional office space or other commercial rental property costs so it’s important that you know and understand how much your monthly rent will be before signing the contract. Any errors in your calculations can be costly to your business. For more information or help with estimating your your business rental space costs in Austin feel free to contact us. The small business development center also has a lot of good information.

How to Calculate the Monthly Cost of Renting Commercial Property for Lease

admin — Fri, 06 Apr 2012 04:36:22 +0000

When trying to determine which commercial property you want to lease one of the main determining factors is monthly cost, however many do not understand how to calculate monthly rent.

Calculating your monthly lease amount involves 3 things:
1. The square footage of the space you are about to lease (e.g. 2,000 SF)
2. The landlord’s quoted rental rate (e.g. $20 SF)
3. The number 12 (number of months in one year)

It’s common for landlords to quote commercial property for lease differently. One may quote $22 sf, the other may quote $12 + $10nnn. At the end of the day they are both quoting the same total lease rate. There are other things to consider however we will save that lesson for another time.

Below are a few examples on how to calculate the monthly cost of renting commercial property for rent.

Example #1
You are thinking of leasing 2,000 SF. The landlord is quoting $20 SF lease rate. Lease term is 12 months.
Monthly Rent = 2,000 x $20 / 12 = $3,333 per month

Example #2
You are thinking of leasing 1,500 SF. The landlord is quoting a rental rate of $19.50 SF.
Monthly Rent = 1,500 x $19.50 / 12 = $2,437.50 per month

Example #3
You are thinking of leasing 2,300 SF. The landlord is quoting a $27 lease rate.
Monthly Rent = 2,300 SF x $27 / 12 = $5,175 per month

Whether you need office space for rent or another type of commercial real estate the calculations are similar. You can also try using our handy commercial property rent calculator.

Photo Credit: businessinsider.com