Sublease vs Direct Lease
As the Austin office space market continues to tighten, great office lease deals are becoming harder to find. This Texas Office Market Report newsletter is distributed as a means of informing our clients and commercial real estate tenants about ways to save time and money during the office leasing process.
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 20% 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 relocation process.
3) Flexible and simple lease terms are common for sublease office space.
Subleases often offer the opportunity for shorter lease terms than the typical 3 and 5 years which a direct lease requires. Subleases also may provide the opportunity to rent just a single office if you have a small or growing team.
Sublease Trends
Even though the last recession is a distant memory in much of Texas, that economic instability took its toll on the commercial real estate industry. Austin’s economy bounced back very quickly, but even a booming market can result in a large amount of office space available for sublease. There are many factors in why a company chooses to sublet their excess office space. Most of which are results of elements from outside the local Austin economy.
Current vacancy rates are low in Austin, and there is very high demand for all real estate product types. However, there is currently over 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 rates. The constantly changing market conditions make it especially important to know your options and to start your office planning process early.
Current Sublease Listings
Click on the address links below to view the flyers for each available sublease listing. Feel free to contact us if you’d like a customized list of available office space that specifically meets your criteria.
Image by Xceligent, Inc.
8900 Shoal Creek Office Sublease
Image by Xceligent, Inc.
Legends Village Office Sublease
Image by Xceligent, Inc.
Additional Information
If you are interested in rental rates for a certain location or are seeking Austin office space for lease, please contact us with your requirement.