How are Austin Office Lease Rates Quoted?

How are Austin Office Lease Rates QuotedAustin office space lease rates are quoted in several different ways depending on who owns the building.  It’s really an accounting thing and/or personal preference however at the end of the day Landlord’s end up passing through all or almost all of the building operating expenses (Also known as triple net..NNN or taxes, insurance, & maintenance costs).  You can read more about Austin office lease structures here

In most cases office building owners in Austin quote triple net (nnn) lease rates.   What that means is that they quote a base rate AND a NNN.  It’s very important to know this!  Some companies see Austin office listings online for $30 nnn and think that they are only paying $30 sf………and end up way over budget when they realize they have to pay more.

For example if an office is quoting $25 nnn………. you will also be charged for NNN.  So if the estimated NNN are $10 sf your total rent will be $35 sf ($25 + $10).

And if you are leasing 4,000 sf your estimated monthly would be $11,666 per month (4,000 sf x $35 divided by 12).

In some cases you mind find a building quoting $35 sf full service.  99% of the time there will be a base year component which means after year 1 if the operating expenses go above the actual’s of that first year you end up being charged the difference.  I wrote a little more about commercial lease rates here.

As you are looking at space please make sure you know the total monthly and yearly cost.  Don’t make the mistake of signing a lease thinking you are only pay X when you will actually being paying XXXXXX.

If you have any questions about how Austin office lease rates are quoted don’t hesitate to give me a call.

 

 

 

 

 

 

 

 

 

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