Cost of Leasing Office Space in Austin, TX
As one of the fast-growing economic cities in the United States, Austin is the home to some of the top established organizations as well as startups and small businesses. Austin, Texas, is booming with aspiring individuals and global companies setting up their offices.
At GW Partners of Texas, we have helped numerous clients to find their desirable office properties in Austin. The first-ever question that most of these clients ask is, “How much does it cost to lease office space in Austin?”
Therefore, in this blog, we will address the main factors that decide the total cost of leasing or renting an office in Austin along with the estimated prices.
What Are the Factors That Influence Your Rental Rates?
There are many choices to pick a commercial real estate for rent or lease in Austin. It all boils down to your requirements and your budget. Let’s breakdown the main factors that contribute to the final cost of renting office space in Austin.Building Class
There are three main classes of building in Austin and the rents vary predominantly based on this factor. The Class A buildings are the top ones that come with various amenities like fitness centers, stunning common areas, on-site management and many more. These buildings are mostly present in the hub of Austin overlooking a great view of the city.
Class B and C buildings do not come with such amenities. However, they are well-maintained and have decent decor for a professional setup.
Depending on your business and budget, you can choose a specific class of buildings.
Often, many companies wish to offer their employees additional amenities like restaurants, play areas and fitness centers. These amenities are mostly related to the class of the building you choose from. Sometimes, some of the buildings in Class B and C may have a few handpicked amenities that are offered in Class A buildings.
So, if you are particular about a specific amenity, say a gym, you can search for buildings with a fitness center in all building classes.
Of course, the operating expense is a significant cost that adds up to your rent. The insurance, maintenance of the common spaces, property taxes and the salary to the janitors will factor into the operating costs.
When we look at the top factors that contribute to the costs, not many of us consider the hidden costs for leasing office space – the parking rates. Though these aren’t actually hidden, we don’t consider it as a part of our rental or lease cost. The parking cost can increase your monthly rent or lease and may even tip over your budget limit.
Some buildings offer free parking to a particular number of spots depending on the size of the office you rent. On the other hand, there are also lots of buildings that charge you separately for the parking spots.
How Much Will It Cost You to Lease Office in the Three Submarkets of Austin?
Now that you know the different criteria that go into the cost of renting commercial office spaces let’s have a look at the cost estimates.
Usually, the rates for commercial real estate for rent are indicated for every square foot. You can see prices like $60/sf or $60/sq ft. It means that you pay $60 for every square foot of space you rent or lease. In Austin, there are three main submarkets: the Central Business District (CBD), Northwest Submarket and Southwest Submarket.
- The CBD is the premier real estate market in Austin. Here, the base rent for office spaces starts from $40/sf for a Class A building.
- The Northwest submarket is emerging as a popular spot for technology companies in Austin. It has one of the lowest rent starting from $22/sf as the base.
- The Southwest submarket is just near to the beautiful natural spots of Austin. The base rates here start from $22/sf.
The rates mentioned in all of these submarkets are not inclusive of the operating expenses, which can add up $10/sf to $30/sf to the base rent. If you are planning to find a commercial property for lease, then the total cost will be a bit lesser than the base rent.
When looking for commercial real estate for rent or lease, it’s vital to understand that these base rent rates plus the operating expenses wouldn’t make up the final cost. Make sure to factor in the previous criteria we discussed to get an idea of the final cost.
Do you want any help to find a great office space in Austin, TX? Call us at 512-852-7930 and let us help you find an amazing office within your budget.