Find Austin Office Space For Lease With Our Help
Austin Tenant Advisors specializes in helping tenants & buyers search for & find the best Austin office space for lease, rent, or sale within your ideal location, size, & budget. We help you understand your current and future needs, search for and identify the best spaces, & negotiate the lowest lease rates and best terms possible.
If you would like us to help you search for commercial office space in Austin Tx call 512-861-0525 or fill out our form to get started. Our fees are paid by landlords so our service cost you nothing.
Whether you need to rent a small office or a large one we can help. We have over 12 years of experience in finding office space, negotiating leases, expansions & renewals and purchasing office buildings for sale in the Austin, Texas metro area.
Cost to Rent Office Space Per Square Foot in Austin Tx
Below are the average office space rental costs per square foot in Austin, Tx. These rates and prices assume that all operating expenses are included (electric, janitorial, taxes, insurance, and maintenance). If you have any questions give us a call at 512-861-0525
|Austin Office Space Lease Rates||All Classes||Class A||Class B||Class C|
Office Space Costs in Downtown Austin
The cost to rent office space in Downtown Austin are going to be the highest. There are a few older class C buildings with rates in the $30 $35 sf range, however if you are considering one of the newer class A office towers or something on the creative side expect to pay between $55 to $65 sf gross. This would include utilities and janitorial services. Also keep in mind downtown parking is not free. Expect to pay somewhere between $150 to $250 per month for each one.
Cheapest Office Space in Austin
If you are looking for the least expensive value office space in Austin then you'll want to focus on the Northeast, South, and Southeast areas. The cost to lease office space in those areas will range from $20 to $25 sf which will be the lowest lease rates in Travis County. You can also consider flex industrial which are single story buildings with windows on the front that are typically in industrial parks.
Q1 2018 Austin Office Space Market Update
With an unemployment rate of 3.6% vs the national average of 4.4%, Office leasing activity in Austin remains high and economic confidence seems intact with tenants and landlords. We expect Office Lease rates to remain high or even go higher depending on absorption and vacancy rates. Austin's downtown and East side districts will continue to lead the way as being the most expensive areas to lease space.
- Total Office Vacancy Rate - 8.2%
- Downtown Vacancy Rate - 7.6%
- Suburban Vacancy Rate - 8.3%
- Total Average Austin Lease Rates All Classes - $33.70 sf
Types of Office Space in Austin
Every business has unique needs. You may be a start company in search of a small office or an existing Fortune 500 company needing large space and lots of parking. With over 80 million sf of Austin Texas office space there are options to satisfy everyone's diverse professional workplace needs. For example you will see them as old converted houses, downtown towers such as the Frost Bank Tower, creative & modern dwellings, and many others as lower cost value options in the Northeast area. The determination of Classes can be subjective depending on the marketplace or the landlord/broker listing a particular property, however the basic rules of thumb are as follows:
Traditional Office Buildings: Typically are multistory buildings with multiple tenants in different industries. Lobbies, hallways, & bathrooms are common to all tenants in the building. In most cases landlords take care of all the maintenance, repairs, and cleaning. Whether you want to lease in the downtown area or in the suburbs we can help find just what you need. The property definitions vary:
- Class A: Are typically the nicest & newest of all the buildings. They have the best looking finishes and more modern upgrades and technology features both inside and out. Such buildings will have the highest rental rates and include onsite amenities like covered parking, delis, fitness centers, and state-of-the-art technology and communications offerings.
- Class B: These properties boast some but not all of the same features as Class A, although they generally come at a lower rental rate. The buildings are typically a little older than Class A buildings but well maintained, and have fewer high end finishes and amenities
- Class C: These buildings will generally have lower quality fit and finish to the internal and external decorations and furnishings. The design of such buildings will be basic and will typically demand the lowest rental charges. Such buildings are older than class A or B and lack functionality and modern technology, as well as located in less desirable locations.
Flexible Office Space: Tend to be one-story, concrete tilt-wall buildings with windows on one side. They provide use flexibility between office, retail, light manufacturing, laboratory, warehouse, etc. Users will generally have their own exterior entrance, private restrooms, and sometimes overhead doors. Lease rates are typically lower than professional structures.
Executive Suites: If you need short term and/or temporary, executive suites might be the way to go. They tend to be more expensive than however they are great for those who need month to month terms.
Things to Consider When leasing Austin Tx Office Space
- Start your search earlier than you think you need to. At least 6-12 months before you need space or before your existing lease expires
- Determine If You Really Need One - In the past office space was necessary for businesses to operate. Today entrepreneurs and startups are just fine working in executive suites, co-working spaces, or from home, especially with the technology available to us. You could save a ton of money if your business could operate in remote environments
- Get Help From Experts - The process of searching for and looking for office space is overwhelming, especially if you are new to an area and/or don't have the time to do it on your own. However if you work with a local tenant representative who is familiar with the properties in your ideal area, they can make the process much easier as well as help you negotiate the best deal possible.
- Don't Take More Than You Need - Too many small businesses rent more space than they need. Consider hiring a space planner to determine your ideal needs then use that program as a guideline as you tour buildings.
- Know Your Future Needs - If you plan on growing make sure the space or the building can accommodate your future growth. If not then search elsewhere. Nobody has a crystal ball however it's really important that you have an idea where your business will be and how many employees you will have in 3-5 years.
- Office Layout - Do you want an open layout or a bunch of hard walled offices? Think about the job functions of the employees. If their job requires a lot of concentration then an office will make them more productive. Don't just assume that everyone can function productively in an open office layout.
- Keep to a Budget - If you are a startup company you might want to stick to lower cost value space unless you have investors with big pockets that are ok with you splurging a bit. Before you start your search run some numbers so you can have some sort of budget in mind that will allow you to operate your business without putting you too far in debt.
- Lease Term Length - If you are a startup or brand new small business then it may make more sense for you find space that you can do a shorter term (e.g. 1-2 years). If you are more established then a longer lease will make more sense. Also keep in mind most landlords won't consider anything less than 3-5 year lease term if a space needs tenant improvements (new carpet, paint, new walls, demo, etc..). In the right market if a space can be taken "as is" then a building owner might agree to a 1-2 year.
- Find Work Space Near Employees - Attracting and retaining employees is tough these days especially when they have to deal with long commutes. Find space in a central area that makes it easy for your team to get to and from work so they can spend more time with their family. If you are a startup on don't have any employees yet then choose a location that is heavily populated with potential talent.
- Easy to Find & Access - Keep your clients and vendors in mind when choosing your work location. You want to consider how easy it is to access from major highways and to and from the airport. Also is there public transportation? Is it easy to find?
- Location & Image - Whether you like it or not the look of your office says something about your business. If you pick a run down building then clients or prospects may think you are struggling. If you rent the nicest most expensive office space in town then they may think that they are paying you too much for your services. At the end of the day find an office they portrays the image you want.
- What Amenities Do You Want? - Just like you don't want your employees to have long commutes you also want there to be a lot of banks, coffee shops, restaurants, doctors offices, and other conveniences nearby so they can take care of their personal matters without having to drive 40 minutes away.
- Know What Expenses You are Responsible For - Depending on the type of commercial office you are in your monthly rent could include a number of things. Who pays for the electric & janitorial? What about taxes and maintenance? Who pays for tax or operating expense increases? Who pays for the HVAC maintenance? What about lawn care?
- Understand What the Commercial Lease Means - There is a lot of legal jargon in offices leases and some are up to 50 pages long. Make sure you have read and understand the lease and how it effects your company. Don't just take the landlords word for it that utilities are included. Every business point needs to be clear to you and included in the contract.
- Know Who Is Responsible for Repairs & Maintenance - Some building owners include everything in your base rent & operating expenses. Others require you to pay for your own utilities and repairs. Again make sure you understand what the landlord is responsible for and that they take care of things in a timely manner. If you are responsible for repairs then make sure you keep a slush fund for them.
- Know How the Space Will Be Delivered - Don't assume the landlord will deliver the space exactly as you negotiated. Make sure that whatever you negotiated (e.g. new carpet, paint, demo walls, etc) is completed. Do a walk through of the space immediately before tenant improvements begin as well as after they are completed. Negotiate to ensure that the rent commencement will not begin until the space is delivered as promised on the contract.
- Know What Improvements You Are Allowed to Make - More than likely you will want to make some improvements to make your office match your brand. However most landlord don't want you in there knocking down walls and doing other construction on your own and/or without their approval. Before signing anything make sure you know what you are allowed to do and what level of experts you will be required to use.
- Parking - Make sure the building has plenty of parking spaces. If you are a call center then you will need at least 5 parking spaces per 1,000 sf. Most building have a ratio of 3/4 per 1,000. Downtown areas have ratios of 2/3 per 1,000 sf. Do you need covered parking? Parking for your team is critical so make sure your needs will be accommodated.
- Exist Strategy - Every company has great intentions to be successful however it's important to understand what will happen if things don't go the way you planned and you need to break your lease. Ensure that you are comfortable with any early termination penalties or fees
Whether you are looking for small office space for rent, a large traditional place of employment or another type of Austin commercial real estate we can help you find and negotiate the optimal workplace to fit your means. We keep it simple, fast, and efficient.