FOR IMMEDIATE RELEASE
AUSTIN, Texas — Austin Tenant Advisors issued new advice for companies seeking downtown office space. With competition heated across the board, the commercial real estate consultancy recommends that businesses looking for new quarters plan ahead by at least six months. Even with high-profile new developments like the Lincoln Property Company’s 18-story, Class AA 5th + Colorado under construction, the level of demand and the need for improvements in many unoccupied spaces mean that an absolute minimum wait of three to four months is to be expected. Helping businesses find the best space at the best possible price, Austin Tenant Advisors assists with the search for, selection of, and negotiation over commercial space of all kinds in the Austin area.
“We’ve just completed another of our regular assessments of the downtown Austin office space market and have arrived at a number of significant conclusions,” Austin Tenant Advisors founder Nathan K. Smith said, “As expected, demand remains incredibly high, particularly for spaces of over 10,000 square feet. We now recommend that any company looking to move into or around downtown start the search process at least six months ahead of time for the best chances of success. With lease terms of five years and more now the norm, we’re even advising that some smaller companies and startups look into co-working space for the time being.”
Austin has been ranked among the country’s fastest-growing cities for many years now, with much to offer to both companies and residents. The former appreciate Texas’s famously business-friendly regulatory and tax environments, while the latter are drawn to the city’s laid-back living, natural beauty, and economic opportunities.
While all that growth produces plenty of positive effects, it has its downsides, too. Austin has struggled with traffic issues for years now, for instance, and there seems to be little hope of resolving these problems, particularly in the face of what is likely to be even more growth in the future.
As the new Austin Tenant Advisors analysis and recommendations make clear, growth has also impacted the availability of office space in the city’s central business district. With current vacancy rates in the downtown area hovering around 8.3% and the unemployment rate in the city an impressive 3.5%, it is clear that businesses are doing well. At the same time, this means that finding office space, particularly downtown, can be a real challenge.
Smith estimates, for example, that there are now only a handful of available leases for spaces of over 20,000 square feet in the downtown area, a fact that means competition for them is fierce. Although there are a number of office buildings presently under construction, new space will not start trickling onto the market until the first quarter of next year.
Austin Tenant Advisors therefore now recommends that companies moving to the area or seeking new office space downtown give themselves at least six months before planning to take occupancy. The company also advises that working with an experienced commercial real estate agent can also be rewarding. With in-depth knowledge of the local market and no interest in particular properties, these specialists can make the process easier and faster as they identify the best opportunities and help protect their clients’ best interests in a highly competitive environment.
About Austin Tenant Advisors:
Helping businesses find the best commercial space of all kinds at the best possible prices, Austin Tenant Advisors combines in-depth knowledge of the Austin market with a commitment to serving each client’s best interests throughout the process of finding, negotiating, and relocating.
Nathan K. Smith
Austin, TX, 78701