For companies that are considering working in Downtown Austin, Austin Tenant Advisors has put together an office space cost guide that provides information and pricing about each building to help make it easier to decide on which office building to choose.
Quick Facts About Office Buildings in Downtown Austin
- 74 office buildings (not including old houses zoned for office use)
- 12.1M total rentable square feet (rsf)
- $59.36 per square foot (sf) is the average asking gross rent
- $31 – $80 sf is the range of asking rents
- 22% vacancy
- 856,335 sf of available sublease space
As COVID cases surged in 2021 available office space inventory skyrocketed. While the pandemic has caused many major companies to delay their return to the office until January 2022 it seems that the rate of new available office space inventory has declined or has not changed in Q3 2021 compared to previous quarters. There has been an increase in office leasing activity as companies plan their return to the office.
Office Buildings You Should Know
Frost Bank Tower – 401 Congress Ave
Located at 401 Congress Ave. Austin Tx 78701 The Frost Bank Tower is one of the most recognizable office skyscrapers in downtown Austin because of its pyramidal crown prime central location on Congress Ave. Built in 2003, it’s a 33 story class A building with 535,078 total rentable square feet. It features amenities such as a 5,500 sf fitness center with showers, 2,800 sf 50 seat conference center with catering kitchen and AV equipment, bike storage, restaurants, and coffee shop. It also attracts the most elite tenants which include financial institutions, law firms, software companies, real estate investment companies, and consulting firms. Frost Bank Tower will be one of the most costly buildings in downtown Austin to lease as quoted rents are currently $79 sf gross (includes base and NNN).
600 Congress Ave
Located in the center of downtown Austin at 6th and Congress 600 Congress Ave (formerly One American Center) building gives tenants easy access to the old and new entertainment districts. Built in 1984 and remodeled in 2017, it’s a 32 story class A building with 503,951 rsf. It features amenities such as onsite management, bike storage, 3,700 sf fitness center with showers, and a coffee shop. It attracts a wide range of corporate and tech tenants including software companies, coworking, financial services, and others. Current asking prices are about $69 rsf.
Capital Center – 919 Congress Ave
Located one block from the State Capital at 919 Congress Ave Austin Tx 78701 Capital Center is a 15 story tower with 164,000 rsf of class A office space. Built in 1984 it features amenities such as a tenant lounge, building conference room, and a fitness room with showers. There are tons of nearby restaurants and coffee shops within a 2 minute walking distance. Typical tenants include lobbyists, law firms, and financial institutions. Average yearly rent costs range from $58 to $65 sf depending on the location of the office within the building.
515 Congress Ave
If you want to be at the heart of downtown Austin then this is the building you want to be in. Located at 6th and Congress, 515 Congress Ave (formerly Bank of America Center) was built in 1975 and was the 2nd building in Austin to surpass the Texas State Capitol in height. This office building is 26 stories high with over 258,000 rentable square feet. The typical floor plate is 14,000 sf. The tower has been completely renovated with over $16 million in improvements that features a newly renovated lobby, elevators, and corridors, as well as a new conference center, bike storage, fitness center, and private showers. Quoted yearly lease prices range from $71 to $72 per square foot gross. Parking ratio here is 1 space per 770 sf or 1:770.
823 Congress Ave
823 Congress is a 16 story, 181,000 rsf office building located at 9th and Congress and is one of the best value class A office buildings in downtown Austin. It was built in 1974 and has been completely renovated a few times since boasting amenities such as a fitness facility with showers and lockers, storage space, common area conference room, and a tenant lounge.
As a result of all the new finishes that include a new modern lobby and updated restrooms and corridors and the fact that the landlord has a number of very cool looking creative office spec suites under construction the building has attracted a lot of software / Tech companies and other businesses seeking creative office space. Since it’s also only 2 blocks away from the Capitol Building it also attracts lobbyists and law firms.
Asking rents are currently $62 rsf based on current base rents and estimated nnn.
Perry Brooks – 720 Brazos St
If you are looking for a creative historic building then check out Perry Brooks. This is a 12 story 137,709 sf office building that was built in 1954. In 2010 it was completely renovated into a modern, energy efficient class A office tower. Located at the corner of 8th and Brazos, this building is within walking distance of the State Capital of Texas, Austin’s central business district, and in close proximity to a multitude of restaurants, hotels, and other entertainment venues. Floors 1-5 also provide direct access to the parking garage which has a parking ratio of 2.79 per 1,000 sf leased. Leasing office space here will cost about $62 sf gross which includes base rent and triple nets.
Office Space Pricing
In most cases asking base rents are negotiable, however landlords will initially price their available office space at or close to market value which is based on comparable buildings in the area. Yearly base rate escalations are also common and those will range from 2% to 4% each year.
In addition to the base rent Tenants should also expect to pay for operating expenses (aka NNN) which include the electric, janitorial, and common area maintenance costs. To simplify things a bit the gross rates for the buildings above include the base rate and nnn.
Rental concessions such as free rent, lower base rate, tenant improvement allowances, etc can be negotiated, however it’s all contingent on the length of the lease, existing market conditions, and the strength of the tenants financials. As a licensed Tenant Representation Broker, Austin Tenant Advisors is committed to helping you negotiate the lowest lease rates and best terms possible.
Parking is not free in Downtown Austin so make sure to add that to your monthly budget. On average monthly parking costs range from $150 to $250 per space.
Office Costs Guide Published By Austin Tenant Advisors
Austin Tenant Advisors is an independent and licensed NO FEE Realtor with over 16 years of experience representing businesses that lease downtown Austin office space and the surrounding metropolitan area. Our goal is to help you find the right office at the right price.
If you would like to learn more about office buildings in downtown Austin and the cost to lease them you can call Nathan K Smith for more information at 512-861-0525 or fill out the form on our website to get started.