As the Austin office space market continues to tighten, great office lease deals are becoming harder to find. Austin Office Report distributes a quarterly newsletter as a means of informing my clients and commercial real estate tenants about ways to save time and money during the office leasing process.
SUBLEASE VS. DIRECT LEASE
If you are in the market for office space, there are several reasons why you should consider a sublease:
1) Office space that is subleased typically rents at 25% or more below direct lease rental rates.
2) Subleased office space can often be delivered move-in ready, with furniture and structured cabling already in place. This could end up saving a lot of money and many headaches during the move-in process.
3) Flexible and simple lease terms are commonly negotiated for sublease office space. It is possible to obtain a true gross rate with no escalations and zero pass-throughs to the Tenant.
Subleases often offer the opportunity for shorter lease terms than the typical 3 and 5 years which a direct lease will require and may provide the opportunity to rent just a single office.
For more information on the values of sublease office space or if you are interested in subleasing your current space, please contact us directly.
SUBLEASE TRENDS
During the last recession, the economic instability took its toll on the commercial real estate industry. Even though Austin’s economy bounced back very quickly, dim reminders of the downturn are still present throughout the country and the world.
Current vacancy rates in Austin are low, and there is very high demand for all real estate product types. However, there is currently almost one million square feet of Austin office space available for sublease! As stated before, there is a multitude of different reasons as to why this office space is on the sublease market. This can mean a great deal to be had for prospective tenants though.
Due to the ever increasing asking rental rates in Austin, many companies choose to lease more space than they need right now in order to have significant savings in the future as they grow. In the interim, they often choose to sublease the excess office space at below market rents.
The constantly changing market conditions make it especially important to know your options and to start your future office planning process early. For assistance with evaluating your future office plans or a complete list of all available Austin office space for sublease, please email or call us at 512.779.4961.