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SELF STORAGE INVESTMENT
The development of the self-storage industry and the number of people investing in such kinds of real estate properties is growing; what’s more, some claim that this self-storage market is about to become the fastest-growing one.
Thanks to the variety of different purposes this kind of space can serve, the demand is vast. If, for example, you are coming to live in Austin, or you are about to move your business there, renovate your home or declutter it, chances are high that you’ll need to get yourself a storage unit.
Still, since nothing can go without its good and bad sides, investing in self-storage facilities in Austin can’t as well. That’s why we will talk about this kind of investment’s main pros and cons.
Pros of investing in self-storage facilities in Austin
1. Easy to construct
The infrastructure that is required for constructing a self-storage unit is minimal. Apart from good lighting and a reliable security system, there is nothing that is considered essential. There are no expensive plumbing system expenses nor some special decorating efforts.
Still, having a climate-controlled storage facility with a good insulation system is really desirable. However, if you decide to make such a huge investment, you’ll have a chance to increase your rent and make your hard work worth it.
2. And to maintain
On the other hand, when it comes to maintaining a self-storage property, it comes down to cleaning and, from time to time, painting the storage interior. The advanced modern technology makes maintaining things much easier since you can control lightning and security systems long-distance, and cleaning services are available everywhere.
3. There is always a high demand for it
The best thing about owning self-storage is that it can serve many purposes, and there are numerous reasons why people rent them.
In times of good economic situation, people buy more, invest in renovating their properties and relocate more. They’ll need a solid storage unit to keep their stuff there in all those situations. On the other hand, in bad times, people tend to downsize, move to a smaller home, or make relocation plans in search of a better job. So, what’s the thing they will search for? A storage unit, of course.
4. Easy owner-tenant relationship
The leases most self-storage owners make with their tenants are short-term. This kind of month-to-month agreement is helpful in many ways. First of all, it is a stable source of income every month. On the other hand, tenants who do not pay their rent on time won’t be your problem. In fact, if you come across one such person, you can easily evict him since some long-term lease does not bind you.
Another great thing is that remote maintenance of the storage units requires a little in-person communication with the tenants. That can save you a lot of time, but it will also spare you from the inconvenient situations when you must evict the non-paying tenant.
5. It opens more opportunities to get more profit
Investing in self-storage facilities in Austin is an excellent financial project. That is because it mainly opens many other opportunities for additional profit. If you enter the storage industry, you can easily widen your offer to renting moving trucks or even selling relocation supplies.
Cons of investing in self-storage facilities in Austin
Since constructing a self-storage unit is not such an expensive or difficult undertaking, more and more people have decided to try their luck in this industry. That causes constant competition growth. And although the demand is increasing comparatively, you’ll need to invest in changing and upgrading your facilities to satisfy the tenants’ needs and beat the competition.
However, if you see you cannot deal with the competition and are not making enough profit from your facility, you can always turn it into your office if you need one. Self-storage units have shown as an excellent temporary office solution for those about to start a new business or for business owners looking for a new office space.
2. It depends on a good management
Good management is an essential part of every successful business. However, since the business of storage facilities usually includes one person, or sometimes two people, in a team, they really need to carry out a huge responsibility. That’s why hiring the right person to deal with the management is even more complicated for this kind of business.
3. Location matters
It is important for your self-storage facility to be noticeable and easily accessible. Finding a good and strategic location for it is thus your primary task. That should be a place where there is a high demand for a storage unit. Areas in Austin with heavy traffic, or the ones that are expanding in terms of housing, are the perfect starting points.
4. Problems with tenants are not completely avoidable
It is not entirely possible to avoid issues that renting some space to a tenant brings. People can be pretty complicated, and since Austin has become a real magnet for Millennials and other people looking for a good life standard, you need to be extra careful about whom you are renting your storage space. From not paying rent on time to living in the unit or using it for some illegal purposes, you need to be ready to deal with it.
5. You’ll need to pay to keep it secured
Keeping your storage unit secured is very important; that is one of the top priorities when you decide to invest in self-storage facilities in Austin. You are about to promise a safe place for your tenants’ stuff. So, please don’t play with their trust and your reputation. Invest in buying a sound security system and make your storage facilities competitive.
Article provided by Guest Blogger, Margaret Hollow at Spyder Moving.
Permanent link to this article: https://atxre.com/investing-in-self-storage-in-austin/
Best Austin Areas to Buy a Rental Property
Buying a rental property is no easy task; it necessitates knowledge of leasing, mortgage financing, tenant-landlord relations, and property management. Like any other lucrative investment, it has its fair share of advantages and challenges. One such challenge is finding an adequate city to invest in. Austin, Texas, promises to meet the requirements for such an investment property to yield the highest returns. After all, money and business have been steadily streaming into the local Austin economy, making it the 8th best place for Millennials. However, you may still be wondering what are the best Austin areas to buy a rental property. We can help you by recommending some of the most popular neighborhoods where your rental will have a good return on your investment.
Cedar Park, a suburb of Austin located 17 miles from the city center, is full of opportunities for everyone. Simply walking down its lovely streets, you will not be able to miss its unique charm. It also offers a great retreat from the higher rents in the city, making it a perfect location for investing in rental properties.
Around 75% of Cedar Park’s available housing comprises single-family houses, giving the neighborhood a quaint suburban feel. With their rental property in Cedar Park, real estate investors may anticipate an average monthly rental fee of $1,768. Furthermore, with only 21 days, it has a short average time on the market for rental homes. However, the median home price is $611,527, making it a significant investment with even larger possible earnings.
The amenities your tenants will be able to expect from Cedar Park are vast. Families are drawn to the area because of the excellent educational system there. Moreover, it is safer than 41% of other US cities. Cedar Park is also home to the Texas Stars, a professional hockey team, and the HEB Center, which holds various events. Despite Austin’s poor public transit infrastructure, Cedar Park is fortunate to have access to the Metro Rail, which connects Cedar Park to Downtown Austin.
Cedar Park is one of the best Austin areas to buy a rental property because of its family-oriented amenities.
Taylor, Texas, is a terrific area to work, live, and raise a family. The city, which has a population of over 17,000, is only 35 minutes from downtown Austin making it easily accessible and convenient. Massive manufacturing facilities owned by major corporations like Tesla, Apple, and, most recently, Samsung have contributed to this area’s growth potential and continued development. It’s safe to say this Austin area is ideal for tenants wanting to find employment that will provide them with everything they need to have an enjoyable life.
As an investor, you can purchase a rental property for a median price of $582,073, while the average rental fee you can expect is $1,042 each month. This being said, among all the houses currently on sale in Taylor, 63.5% have 3 bedrooms, perfect for an expanding family. Additionally, the median days on the market seem to be decreasing, with a current one sitting at 36 days.
What attracts tenants to this area of Austin is the perfect balance between the impeccable land it is located in and the up-to-date amenities it can provide. The community of Taylor is so entrenched in history and family pride that visitors can’t help but be enchanted by it and all of the lovely unique shops it is filled with. Furthermore, there are fairs dedicated to various seasons, frequent farmer’s markets, and other events to satisfy your tenants. Do not be mistaken; this town also places a high value on education, as evidenced by the opening of the brand-new $38 million Taylor High School.
If your tenants want some peace and quiet, Taylor is one of the best Austin areas for them.
When it comes to the best Austin areas to buy a rental property that’s a popular neighborhood for families, Walnut Creek should undoubtedly be at the top of your list. Although Walnut Creek was formally established in 1862, it is now a vibrant community with a mix of old and new structures, posh businesses, beautiful houses, and a nonstop calendar of events geared toward families. If this is your target audience, you will have no trouble finding tenants that will fill your rental property since Walnut Creek is one of the best neighborhoods for families.
It is an expensive but lucrative investment with a median price of $449,831 that has gone up 23.2% since 2021. If you choose to take the plunge, you can expect an average monthly rent (for a 1-bedroom apartment) of $2,539. Furthermore, the median number of days on the market is relatively low at 16 days.
Walnut Creek is home to more than 20 schools, and its pupils typically outperform the state average in all subject areas when tested statewide. Due to the diverse range of nearby activities, events, and attractions, Walnut Creek is a well-liked location for tenants. Moreover, more than 35 stores are located in Broadway Plaza, while Main Street is lined with independent shops, galleries, and boutiques. And if that isn’t enough, within this area, there are over 100 restaurants, bistros, and nightclubs for everyone to enjoy.
Your tenants will be able to enjoy all seasonal events in Walnut Creek.
With a population of more than 128,000, this once quiet neighborhood is now one of the fastest growing in America. So why not take advantage of Round Rock’s status as a critical economic development hub by investing in a rental property? Although the median price of $541,774 will scare many, the income you would be able to gain is worthwhile. The average monthly rent depends on the property but is currently around $1,623. For real estate investors looking for a market with a significant presence of single-family homes, there are plenty to choose from. After all, among all the houses available, 76.9% of them are 3 and 4-bedroom homes.
Round Rock is approximately 20 miles from Austin. This makes it conveniently positioned for those looking to advance their careers. Although this area is one of the best Austin areas to buy a rental property, your tenants may also prosper, especially those with ambitious startup dreams. However, others will also have no trouble finding work in the area. After all, major employers from the IT and healthcare industries, including Dell, Emerson, and Apple, are all based in this area.
Article courtesy of Norman Lawson.He is a dedicated Austin investment banker who regularly blogs for State to State Move and is driven to impart his real estate expertise to anyone who would listen.
Permanent link to this article: https://atxre.com/best-areas-in-austin-to-buy-rental-property/
A duo of Texas cities reached #8 and #9 on our list of Zoomer-ready cities: In the eighth spot, Austin — a certified haven for Millennials and Zoomers alike and one of the fastest-growing cities in the U.S. — boasted affordability near the national average, as well as a 3.9% unemployment rate and good internet speed.
Generation Zers are graduating and looking for their first jobs, and with the ubiquity of remote work there is more flexibility than ever in choosing where they settle down. In this context, we set out to rank the cities that have the most potential as Generation Z havens.
To determine which areas are hotspots for the younger generation, we looked at the 45 biggest U.S. cities and ranked them based on eight indicators, including percentage of Gen Z population, affordability index, unemployment rate, internet speed, educational enrolment, and recreational establishments.
Here is a taste of what we found out:
- Austin, one of the fastest-growing cities in the U.S., earned the 8th spot on our list of best cities for Generation Z thanks to good scores in several metrics.
- It has a relatively low unemployment rate (3.9%), earning the 5th best score for this indicator among the cities we looked at.
- It also ranked 8th for Gen Z school enrollment, with almost half of the city’s Zoomers aged 20 to 24 enrolled in some form of education.
- Austin also boasts an affordability index near the national average, and good internet speed, making it a haven for Millennials and Zoomers alike.
- Three more Texas cities made the top 20, with El Paso at #9, Houston at #11, and San Antonio at #18.
- Overall, Atlanta earned the title of best city for Gen Z thanks to its large number of parks, highly educated Gen Z population, and affordability.
Read the full study and have a look at the complete methodology here → https://www.commercialcafe.com/blog/top-20-cities-gen-z-2022/
Permanent link to this article: https://atxre.com/austin-claims-8th-place-in-top-10-best-metros-for-millennials-in-2022/
5 Reasons to Invest in Austin Commercial Real Estate
Deciding where you want to purchase an investment property is not easy. Each option has pros and cons, so picking one is often a long and arduous elimination game. Well, we are here to help out and convince you that Austin, Texas is your ideal investment location. This is not a claim that we make lightly. It is the result of Austin’s growth, the local job market, excellent amenities, and unique features all coming together to make it a better choice than nearly any other city for eager real estate investors. Here are the 5 reasons to invest in Austin commercial real estate explained!
Austin’s constantly growing
The first reason to invest in Austin commercial real estate is simple: Austin is a quickly growing city with no sign of slowing down. The industry and amazing opportunities the city offers provide a solid backbone for its continued expansion. Of course, this continued expansion means more people coming into the city, especially considering that Austin has become a magnet for millennials. And more people means lots of individuals looking to rent or purchase a property. Be it for making the property their home or running a business, interest in Austin’s real estate is at an all-time high. Unfortunately, this does mean that property prices are also on the rise. Still, the interest and continued thriving of the local economy mean that you’ll easily be able to recoup your investment and start turning a profit.
Young people moving in, one of the reasons to invest in Austin commercial real estate
The benefits of college
Do not think that colleges are only good for getting an education. Areas that have educational facilities always have a positive impact on the local economy. Investors in commercial real estate with keen eyes have long understood that operating their business near a college means a never-ending stream of college students looking to rent. The same is true in Austin! If you can snag a property near the college campus, you can enjoy all the benefits of never running out of eager tenants.
Of course, renting to college students has its share of problems. If you are not careful with who you rent your property to, you risk getting reckless parties hosted on your property. While a tenant’s lifestyle is not usually an issue, having constant parties on your commercial property does mean higher chances of property damage. Still, the profits that carefully selected tenants can bring to this environment are immense. You should be fine if you perform tenant screenings and occasionally visit the property.
College students, one of the reasons to invest in Austin commercial real estate
Monthly rents are on the rise again
During the pandemic’s peak, the rent prices in Austin had dropped significantly. The rent drop was due to the fact that not a lot of interest in moving or renting existed at the time. Lots of commercial real estate investors needed to get help to decide whether to buy or sell. Now, however, the situation has improved! From around $1,400, rent prices have now jumped to around $1,800. Note, too, that these are considered average rent prices. This means that hotter commercial real estate is worth much more monthly rent, especially if you follow our previous hint and opt to get prime real estate near the college campus. While cheaper properties are available, you will not regret your investment if you can deck out your rental and make it a top-quality property. The incredible interest in Austin guarantees you can find a tenant, regardless of where your property is located.
The amazing local amenities encourage tenants
To give credit where credit is due, all the fantastic local amenities the city offers are part of Austin’s appeal. You can hardly go a few steps without running into an intriguing store, a cute café, or one of the beautiful green areas of the city. The high level of amenities and Austin’s techy and urban vibe also directly contrast just how peaceful and beautiful the city is in the best way possible. Anyone thinking that you can’t have the best of both worlds hasn’t visited Austin! This also means that you can make your long-distance move in Texas more efficient and reduce your costs due to all the fantastic moving companies and services the city offers. Not to mention that what most consider the essential amenities, those dedicated to health care and education, are also top-notch and readily available in Austin, drawing even more potential tenants. All these factors combine to make Austin appealing to a younger, tech-savvy crowd.
The stable job market
The final reason to invest in Austin commercial real estate is the underlying stability of such investment. Yes, the cost of properties and even rent is very high in Austin. But, this is simply because of the higher quality of life in the city. The local economy is strong, and people can support high living expenses. After all, Austin is one of the leading cities for tech startups. Finding employment in Austin is nowhere near as difficult as in other cities that are as large and as expensive. Comparing Austin to New York, for example, reveals just how convenient the bustling vitality of the local job market is. While people in New York struggle to pay rent and cover their daily living expenses due to additional surges in prices, people in Austin can still live comfortably. This means you don’t need to worry about interest in your properties drying up.
The people of Austin have the money to keep the value of commercial real estate high.
With the 5 reasons to invest in Austin commercial real estate under your belt, you should now understand why this city, in particular, is such a fantastic investment opportunity. While many other cities offer rent prices that are just as high, if not higher, no city offers as many incentives to tenants. These incentives mean that even when others struggle to attract people and rent out their properties, you will have a steady income stream. You might even feel compelled to increase the scale of your commercial real estate investment and really lay down your business roots in Austin, especially since the city is only becoming more and more promising as time goes by!
Article courtesy of Jamie Callaghan. His long-term cooperation with Best Long Distance Movers has helped him make faster headway in his career.
Permanent link to this article: https://atxre.com/5-reasons-to-invest-in-austin-commercial-real-estate/
Premium Office Space, a Look around the World
Premium office spaces in premium cities, of course, come at premium prices. With that in mind, we analyzed office leases in desirable business districts in the top U.S. cities using CommercialEdge data cross- referenced with international lease data from JLL, CBRE and Cushman Wakefield. Our findings shed some light on how much offices cost in the most expensive cities in the world.
- While they may house the most expensive offices in the country, Manhattan and San Francisco are still only #6 and #7 in the global arena.
- London, Tokyo and Beijing top the list as the most expensive cities in the world for office space.
- Office rents in Austin and Miami climb to roughly $60 per square foot, passing Sydney and Frankfurt to meet Luxembourg and Boston.
Lease rates for all international markets were obtained from Q1 2022 Market Reports from CBRE, Cushman & Wakefield, and Jones Lang LaSalle for premium, Class A and trophy properties in the most desirable commercial districts in each city. All rankings are based on full service equivalent rates.
Lease rates for all U.S. markets were from Q1 2022 and were obtained from CommercialEdge.
Article courtesy of Patrick McGregor a senior writer covering the real estate industry and overall economic trends in the United States for several Yardi product publications.
Permanent link to this article: https://atxre.com/premium-office-space-in-austin-17th-most-expensive-worldwide/
Buda Commercial Site
B2 Commercial Zoning (Office/Retail)
FM 967 (South Loop 4) frontage
Lot 1: 6.625 acres – AVAILABLE
Lot 2: SOLD
Access: I-35 North and South via South Loop 4 (FM 967)
Asking Price: $5.50/SF
Zoning: B2 Commercial
Jurisdiction: Buda, Texas
Permanent link to this article: https://atxre.com/6-63-acres-of-land-for-sale-buda-texas/
Meanwhile, according to the latest data from the U.S. Census Bureau, 17.4% of residents in the Austin metro residents were part of the Millennial cohort, which landed the Texas MSA in the top spot for its share of Millennials within its total population. And, even with all but two of its seven metrics below the ranking average, Austin still managed to maintain its runner-up position in the top 10.
Austin had the most Millennial-heavy demographic among the entries on this list, with Millennials making up roughly 17.4% of the MSA’s 2.3-million population.
Specifically, between 2016 and 2020, the Millennial population in the Austin metro area increased by 12.8% — the third-largest such increase within the ranking. Going by the numbers, that meant an additional 43,000 new residents within that age group chose to live and work in this Texas metro area. Plus, according to a previous CommercialCafe study, the Austin metro area has been especially successful in attracting new residents from in-state rivals Houston, Dallas Fort-Worth and San Antonio.
Furthermore, despite significant rent increases throughout the last couple of years and median Millennial household incomes below the $100,000 threshold, the region’s cost of living remains competitive when compared to other large MSAs: Austin finished in fifth place, outranking Denver, Boston, Seattle, San Jose and San Francisco.
Here, a robust STEM sector — which also boasts one of the highest female participation rates and incomes in this field within the Southern U.S. — has further contributed to making Austin one of the nation’s top spots for people looking to relocate.
Permanent link to this article: https://atxre.com/austin-texas-a-magnet-for-millennials/
Benefits of Investing in Multifamily Properties in Austin
Deciding to invest in real estate might not be too hard a decision. It is typically profitable, and ‘investing into land’ has always been popular. However, deciding what kind of property you want to invest in and where is a different story. The location can make or break your plans. You can turn a profit much more quickly and with minimal effort if you pick a good one. So, let us discuss the benefits of investing in multifamily properties in Austin and why the city is your ideal investment target!
Lots of potential tenants
One of the benefits of investing in Austin multifamily properties is just how easy it is to find tenants here. This is because of the sheer number of students that call the city their temporary home. With The University of Texas in Austin, the city’s popularity has never waned. The number of students and competition over accommodations also means that the rent prices are pretty satisfying for landlords. Of course, you may be hesitant to focus your property investment on students. Rental property dedicated to student accommodation often needs more upkeep than the property aimed at families. Still, you can rent to students while you search for more permanent tenants. And the cost of rent will at least ensure that you will come out ahead even if you have to do lots of maintenance.
The properties near the University are costly but consistently profitable.
Continued value growth
A fantastic thing about investing in Austin is that the city continues to thrive and grow. This means that, even as the city becomes more prominent, the number of newcomers will continue to increase the value of your investment. Of course, it is impossible to guarantee value growth with complete certainty. But the assumption can definitely be made that property in the city will appreciate. Especially with how easy finding employment in Austin is, it makes it very attractive to the young adults who attend college here, encouraging them to stay and bring additional vibrancy to the housing market.
Growing the value of your investment reliable is always a treat!
Relatively safe investment
Because of the previous two points, we can safely conclude that even if your property does not appreciate in value in Austin, at least you will not be suffering losses. Investments that end up hurting your finances more than they help are the worst fear of any investor. And being able to guarantee at least breaking even is always good. Of course, if you invest further and upgrade the properties you’ve acquired, you can increase the odds of turning a profit. But, this carries its risks and needs a lot of careful consideration. Of course, with so many reasons to move to Austin with kids, many families come here, so at the end of the day, it is rare to be struggling to profit from multifamily properties.
Another advantage of investing in multifamily properties in Austin is the easy scalability. Austin, as a city, has a fantastic variety of properties on sale. You can decide whether to invest in more properties or focus on a high-quality, large property. The number of properties on offer in Austin’s housing market does make it a breeze to find something that perfectly fits your investment needs. This means you’ll likely end up purchasing more properties in the future once your current ones have become sufficiently profitable.
You can continue to invest your profits to boost them further!
Good cost middle ground
Now, is investing in multifamily properties in Austin cheap? Admittedly not. The city is not cheap to purchase property compared to the rest of Texas. However, it must be acknowledged that Austin is more affordable when weighing it against cities with comparable amenities. This means that you can benefit from the fantastic advantages of a large and developed city while still being able to purchase a home at a relatively reasonable price. In addition, there are some things you shouldn’t settle for when buying commercial real estate, and the properties in Austin are generally high quality and in good repair.
Easier property management
Multifamily properties are an excellent choice for investors in Austin when compared to more traditional housing. This is because of how easy they are to manage. If you own multiple properties, it can become hard to keep track of all of them and their tenants. This would put considerable strain on you. And might even force you to hire a property manager, which would naturally cut into your profits. On the other hand, multifamily housing is localized and, unless you purchase several such properties, much easier to manage despite having multiple tenants per property.
This is a more ‘general’ benefit of investing in multifamily properties and is not unique to Austin. Still, it is good to know that you can enjoy some tax benefits if you opt for this investment. This is because states tend to encourage providing housing for families. However, there are some differences based on the qualifications on your property. Still, any tax break will immediately translate into a higher profit margin for you. If you are not sure what you should do to take full advantage of this, you can look for the advice of your Texas commercial real estate broker. They can help you figure it all out.
Now that you are familiar with the benefits of investing in multifamily properties in Austin, it should be obvious why it is silly to hesitate to invest in the city. Whichever way you approach the subject, Austin can fulfill your investment needs. The city has terrific amenities, a vibrant job market, a growing population, and a serious regional draw – the University of Texas. Not investing when all those factors come together in a single place would be ill-advised.
Post provided courtesy of Melanie Gardener. She has a long-standing relationship with evolutionmovingdfw.com, and they have worked to help their clients consistently thrive.
Permanent link to this article: https://atxre.com/multifamily-investing-in-austin/
LOCATION: North of Georgetown, Texas in the Extra Territorial Jurisdiction (ETJ). Georgetown is the fastest growing city in the U.S. Convenient and easy access
from I-35 to the property.
ZONING: Extra Territorial Jurisdiction (ETJ)
JURISDICTION: Georgetown, Texas ETJ
FRONTAGE/ACCESS: Approximately 640 feet of County Road 141 Frontage.
SIZE: 20 Acres
TOPOGRAPHY: Relatively level
UTILITIES: Jonah Special Utility District 12” water line along County Rd 141. Great location for RV Park, Office/ Warehouse development in this convenient, north Georgetown area.
COMMENTS: Near the new 3 million square foot, GTX Logistics Park on FM 972 (+/- 1 mile away). Nearby planned development includes a one acre lot subdivision with (144) total single family sites +/- 1 mile to the east. Easy access from Interstate 35, with conveniently located on and off ramps (Exit 268) in both directions.
LINK TO FLYER => 20 Acres Georgetown, Texas Land For Sale
Permanent link to this article: https://atxre.com/georgetown-texas-20-acres-land-for-sale/
Finding a suitable warehouse in Austin, TX, is much like finding employment. You have to consider all the market options to score the best one. Furthermore, industrial properties often have their own particular requirements and tenant responsibilities. This means you and your warehouse employees have to adhere to the proscribed usage terms of the facility. However, it would help if you also chose the warehouse based on your particular storage needs.
In that sense, you should consult the owner or the landlord of the warehouse space before you go on and lease it for good. We will lay out a couple of commercial tips to help you frame your inquiry.
Ask about the heating, ventilation, and HVAC system
Even though this might seem irrelevant at face value, many industrial warehouses do not have adequate air conditions. However, a good HVAC unit is essential depending on the goods you want to store. In some cases, you may have to install your own HVAC system to maintain the needed temperature in the warehouse. So, before you lease warehouse space in Austin, make sure that you know what conditions you can expect.
Another potential issue you should consider when leasing warehouse space in Austin involves the changes previous tenants have introduced. This means that they might have installed a heating and cooling system that does not suit your needs. It frequently happens that tenants fail to maintain the HVAC unit properly. Before you decide to lease a storage unit in Austin, be sure to bring in a certified technician to check out the HVAC unit and ventilation.
Essentially, improper air and temperature conditions can damage your goods or harm your employees. Not to mention the damage control may impede your business operations and reduce your income. Be sure to negotiate the lease with your landlord and strike a deal in which they will cover the HVAC maintenance or installation expenses. Otherwise, you might be held responsible for potential malfunctions even though the previous tenant is responsible for them.
Know the operating expenses
Knowing how much you have to pay monthly or yearly is an inextricable part of setting up your Austin warehouse. So, the landlord or owner of the storage facility needs to clarify what is and isn’t included in the operating costs.
For instance, they could market their warehouse services as all-inclusive. Yet, this may not include maintenance and minor repairs such as roof repairs. In most cases, operating costs refer to taxes, fees, maintenance, and insurance. However, before you lease the warehouse, make sure you have a clear idea of what you have to cover and what the landlord’s responsibility is.
Double-check the square footage before leasing warehouse space
Depending on different criteria, some warehouses will have different square footage. You must check with the landlords what kind of calculations they used to determine it. It is best to settle on a warehouse for which you will pay rent only for the usable square footage. Sometimes, landlords take into account the area underneath the facility or calculate the square footage starting from the outside wall rather than from the inside.
4. Check the ceiling height
Another point to consider regarding the size of the warehouse is the height of the ceilings. This is especially important if you have to stack your goods or equipment. The same goes for large machines or tools. In most cases, the height of a rentable warehouse in Austin will go from 18ft to 25.
The ceiling height is an important consideration.
Expansion as an option
Another helpful tip when you search for the perfect warehouse in Austin is the option of expanding the warehouse. Although your current needs may not need a huge warehouse, it is always helpful to anticipate future needs in time. So, check with the landlord how long adjacent tenants plan to lease their warehouses. In a year, expansion of the warehouse might be the move that takes your business to the next level.
Yet, even if the expansion of the warehouse space is not an option, it is fairly easy to relocate your warehouse within the area. There are many relocation professionals who offer moving services in Austin, making the transfer of your belongings safer. Thus, all you need to do is find an expert team in the area. A reliable and experienced moving company will be able to transfer all of your goods, machines, tools, and other assets for a fair price and within a reasonable time frame so that your business doesn’t suffer.
A parking area will come in handy
Even though you may be primarily looking for a storage facility in Austin, it might be useful if you get access to a few parking spots alongside the warehouse. Be sure to inquire about this possibility before you make a definite decision to rent the warehouse.
Also, parking areas might require maintenance, and some landlords might charge for the fixes if you have heavy-duty vehicles parked in the vicinity of the warehouse. However, this is another aspect of leasing warehouse space in Austin that you should consider. Since parking area maintenance falls into long-term expenses, they should be covered by the landlord. It’s essential to be careful and take a look at all the amenities before signing a lease, as there is no going back once you lock yourself in a contract.
Article courtesy of George Correy. A warehouse landlord with years of experience in real estate and logistics of storage facilities in Austin. He has collaborated with moving companies such as Heavenly Moving and Storage in order to bring the best transportation services closer to his clients and tenants.
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When to Start New Office Space Search in Austin?
Since the pandemic started, we got used to working from home. Unfortunately, that couldn’t last forever. Now, many businesses are looking for new offices to get back to regular, in-person work. Finding new office space can feel very stressful. Nevertheless, the whole process can be a lot easier if you’ve got the help of professionals on your side. So, we’ve got you covered whether you’re leasing space for the first time, looking to expand, or moving your headquarters. This article will go over everything you need to know, from when you should start looking for new office space in Austin to general tips for leasing an office space.
Start With a List
If you’ve decided that you need to start looking for new office space, the next step is to make a wish list. Consider things that are important to you and your business. Do you want your headquarters near the city center, or are you considering an office in another part of Austin? How big does your office need to be? Or, how many people will be working from your office? How many office units will you need? What about a breakroom? If you need it, write it down. This list will come in very handy once you start looking for new office space because you’ll be able to write off certain spaces based on square footage or the floorplan alone.
Furthermore, determine your budget. Before you start looking around, you need to know the exact range you can afford.
When To Start Looking?
Since the Austin market for commercial real estate is highly competitive, don’t procrastinate looking for your office space. Instead, start your search at least four to six months before your current lease expires or your preferred move-in date. This will leave you enough time to find the perfect location that checks out all your boxes. You also won’t feel rushed into deciding or settling for a bad option just because you don’t have time to look around anymore and wait until something new pops up.
However, don’t forget to consider real estate trends. During the year, the residential and commercial real estate prices fluctuate depending on the saturation of the market. It’s essential to consider that too, and start looking for your new office space in Austin when the supply is higher than the demand to get the best price.
Do You Need To Renovate?
Although you should start looking for new office space at least four to six months in advance, this number can be bigger if you need to renovate the place before the move-in date. Maybe you find an office of the right size at the perfect location, but that requires a lot of work. Or, perhaps you find a modern office that still needs work to fit your corporate image. In any case, you should add the time for the renovation to the equation.
Work With A Commercial Real Estate Broker
In the Austin Metro Area, there are about 4,600 office buildings with over 96,000,000 rentable square feet. If you’re just getting started or are unfamiliar with the Austin area, hiring an agent or broker to help you find your new office space is a good idea. Real estate agents and brokers are experts who know their area very well. They know all the available listings and can work to help you find an office space that checks out everything on your wish list. Moreover, they’ll do their due diligence and help you with the paperwork when the time to sign comes.
Even if you have a real estate broker on your side to help you negotiate, this part of the process can take a long time. Here are just some of the things that need to be negotiated:
- Who is responsible for paying for utilities, cleaning services, and other running costs?
- What will your rent be per square foot?
- How long or short of a lease period do you think you’ll be able to do?
- Is it possible to obtain a renewal option or the first right of refusal if you need to expand?
- What is the maximum number of parking places you are permitted?
- What is the amount for the security deposit?
As you can see, there may be quite a bit of back-and-forth before you reach the point of signing. Then, it will take one to three weeks from the time the lease is created to when the attorneys get it. If you’re considering putting off searching for new office space, you need to keep this time in mind too.
New To Austin?
Finding office space can be very tough if you don’t know Austin well. And, if you’re trying to find an office space even before you move to Austin, that can be almost impossible to do by yourself. Aside from office-hunting, you’ll also need to start house-hunting for yourself and plan your move. Luckily, even if you’re planning to come to Austin from other parts of Texas or the USA, you can always hire movers that will take care of the long-distance relocation. Sure, you’ll have to set the date and pack your belongings, but you’ll have nothing to worry about on the moving day.
The answer to when you should start looking for new office space in Austin isn’t as straightforward as you may have hoped. You need to consider so much to figure out the exact timing. Generally speaking, four to six months should be enough to find and sign papers for a medium-sized office. However, if you have some special requirements, you may need to take longer to find a suitable space. But, in the end, you never know. Although you can’t count on it, real estate can be all about luck sometimes. You may even get lucky and find the perfect office space for your company on the first day.
When should you start looking for new office space in Austin? The short answer? 4-6 months before move-in. The long answer? Read to find out!
Article Courtesy of Rhiannon Harwood, an experienced copywriter specializing in moving and packing content. She’s been working for verifiedmovers.com for three years now. She lives in Austin with her husband and their two daughters.
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Are you thinking of moving your business to Austin?
If so, you’re in luck – Austin is a great place to do business.
With a low cost of living and a thriving economy, it’s no wonder so many companies are choosing to relocate here. But before you make a move, there are a few things you should know. This blog post will provide you with some tips for moving your business to Austin.
So whether you’re just getting started or you’re already in the process of relocating, read on for helpful advice.
Why Austin Is a Great Place to Do Business
Austin is a great place to do business because of its central location, thriving economy, and tax benefits. In addition, Austin has a centrally located business district that makes it easy for companies to access their customers and suppliers.
The Austin economy is one of the strongest in the country, with low unemployment and a robust mix of industries. And finally, Austin offers generous tax incentives for businesses locating or expanding in the city.
The following are some tips on relocating your business to Austin.
Check Out the Business Environment and Resources in Austin
When you’re considering moving your business to a new city, it’s essential to research the business environment and available resources.
The business culture in Austin is very collaborative. Many coworking spaces, incubators, and accelerators provide resources and support for businesses. In addition, the city is home to several major corporations, including IBM, Dell, and Apple. This means there are plenty of opportunities for networking and business partnerships.
There are also plenty of resources and support systems in place for businesses of all sizes.
The Austin Chamber of Commerce offers a wide range of resources, including business assistance, relocation information, and networking opportunities.
The Small Business Development Center (SBDC) is another excellent resource for small businesses in Austin. They offer free or low-cost consulting services, workshops, and events.
You can also check out the City of Austin’s Business Portal for information on business licenses, permits, and zoning.
Consider the Cost of Living in Austin and Doing Business in Austin
Before you relocate your business to Austin, it’s important to consider the cost of living and doing business in the city.
The cost of living in Austin is relatively low compared to other major cities in the United States. In fact, Forbes ranked Austin as one of the most affordable cities to live in. Additionally, the cost of doing business in Austin is also very reasonable. According to a report by the Austin Chamber of Commerce, the city’s overall business costs are 2% below the national average.
These factors make Austin an attractive option for businesses considering relocation. However, it’s crucial to keep in mind that the cost of living and doing business can vary depending on the specific location within the city.
Think About Your Business Location
When you’re thinking about relocating your business to Austin, it’s important to consider the location.
The city is divided into several different regions, each with its own unique character.
Downtown Austin is the city’s central business district. It’s home to a number of businesses, restaurants, and nightlife options.
The East Side is a rapidly growing area popular with young professionals and creative types.
South Austin is known for its laid-back atmosphere and eclectic mix of shops and businesses.
Northwest Austin is the city’s tech hub, with a number of major tech companies headquartered here.
West Austin is home to some of the city’s wealthiest residents. It’s also where you’ll find a number of high-end shops and restaurants.
Choose the Right Time to Make the Move
Once you’ve decided to relocate your business to Austin, it’s essential to choose the right time to make the move.
The best time to move depends on several factors, including your industry and the specific needs of your business. However, mid-year is usually the best time to make a business move.
This is because many businesses experience a lull in activity during the summer months. This can make it easier to relocate without disrupting your business too much. Additionally, mid-year is usually when commercial lease rates are at their lowest.
Evaluate Your Workforce Needs and Find the Right Talent in Austin
When relocating your business to Austin, it’s important to consider your workforce needs.
The city is home to several colleges and universities, making it a great place to find talented employees. Your particular industry will also dictate the type of workforce you need.
For example, if you’re relocating a tech company to Austin, you’ll need to find employees with the right skills and knowledge in the tech field.
If you’re moving a manufacturing company, on the other hand, you’ll need to find workers with the necessary training and experience in manufacturing.
You can find talent in Austin through several different channels, including job fairs, online job boards, and temp agencies.
Make a Plan for Your Move
Once you’ve decided to relocate your business to Austin, it’s important to plan your move efficiently. There are many things you’ll need to consider, including your budget, your timeline, and your workforce needs.
It’s also essential to have a clear understanding of the zoning regulations in the city. This will ensure that you can find a commercial space that’s suitable for your business.
Utilizing office moving services from a group like threemovers.com can take a lot of the stress and hassle out of relocating your business.
By working with a professional moving company, you can ensure that your office equipment and furniture will be safely transported to your new location. This can help make the transition to your new office space much smoother.
Make Austin Your New Home
Austin is a great place to live and work. But, by following these tips, you can make sure that your business can successfully relocate to this vibrant city.
Remember to research your business location, choose the right time to move, evaluate your workforce needs, and make a plan for your move.
In doing so, you can be sure that your business will thrive in its new home in Austin, Texas.
Blog post provided by the kind folks at threemovers.com
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Austin, Texas – Hot Commercial Market
Texas has been very attractive in terms of real estate for years. That is why investors are rushing to set up their companies and branches in large Texas cities. But, some cities are naturally better than others for commercial real estate. In addition, inadequate commercial space can noticeably slow down your company’s growth. That is why we will discuss the hottest markets for commercial real estate in Texas.
Austin has been at the forefront of quality commercial real estate in Texas and beyond. Even the Covid-19 pandemic has not been able to damage the activity and reputation of this market. In fact, the national report has ranked Austin as the second-best city for commercial real estate investors. This means this city has managed to put behind ‘big-shot’ places such as Boston, Washington, and Nashville. Consequently, Austin is one of the cities with the fastest growth rate in the US, positioning itself among economic strongholds such as Seattle and Miami.
All of this makes Austin one of the most attractive destinations for people seeking attractive employment opportunities. In fact, a record number of 10,000 new job seekers have moved to the city in 2021 alone. This means many highly skilled and experienced professionals from various industrial and commercial sectors have been flocking the city. And where you have a plethora of experts, you also have a booming economy.
Austin’s population is growing as well
Not surprisingly, some estimates show that Austin is the quickest growing metro area in the US. With a 3% increase in population in its metro area, which amounts to a whopping 1 million new residents moving into the city, Austin’s investment potential also drives the commercial real estate economy forward.
Industry giants based in Austin drive up commercial real estate
Commercial properties in Austin are the perfect foundation for the rapid and promising development of large companies and SMEs alike. It is no surprise then that industry giants such as Tesla, SpaceX, Facebook, Apple, Dell, GM, and Wholefoods have their outposts in Austin. In fact, Austin’s all-around beneficial corporate climate has instigated the software giant Oracle to relocate to Austin permanently.
Hence, relocating your business to Austin also means you will be able to position your company as a leader and trend-setter in your line of work. So, a new location can help you grow your operations and set yourself apart from the competition.
Investment opportunities are aplenty in Austin
It is no surprise that Austin has been recognized as the topmost US market in 2021 regarding investment opportunities. Another big advantage Austin brings to the table is the fact that the city’s projected growth goes hand in hand with a strong labor market.
In other words, business and investment opportunities give way to a highly-skilled workforce flocking into the city and vice versa. The noted advances are thus contributing to an already very active corporate climate.
The Covid-19 pandemic has also influenced investors to shift their attention from large metros to smaller markets. As a result, large capital investors (i.e., investors worth $50 billion or more) have their sights set on markets like Austin, thus driving up the area’s rental, leasing, and building activity.
All of the mentioned factors give rise to unprecedented growth in the supply and demand of quality real estate in Austin, TX. Add to that the high standard of living, an exciting cultural scene, a tech-forward economy, and top industry professionals residing in the city, the investment and building prospects in the sphere of commercial real estate have never been more beneficial.
In sum, there are many reasons why Austin is regarded as one of the hottest markets for commercial real estate in Texas. Hopefully, this short guide has helped you deepen your understanding of commercial real estate market trends that have brought about this trend.
Article courtesy of Regina Altman, Austin, TX. She frequently collaborates with State to State Move
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Buying vs. Leasing
Whether you are starting up a new business or moving an ongoing one to a new location, you will likely run into a dilemma – buying vs. leasing commercial real estate. Both have notable pros, and both have cons, which is why you need to be careful when weighing them out. So, we will use this article to elaborate on these pros and cons. Hopefully, this will give you a better idea of how to approach this often tricky problem.
Buying real estate
At first glance, buying commercial real estate for your business seems like a natural, straightforward idea. By doing so, you don’t have to worry about rent or dealing with landlords. If your business is profitable, you will likely pay off your loan in a couple of years. If not, you can still choose to rent out your property, and hopefully, pay off your loan solely from that. An easy choice, right? Well, in actuality, there are important factors to consider that may deter your decision to buy real estate.
Apart from what we’ve already listed, buying commercial real estate gives you the freedom to reorganize it as you see fit. If you feel that it is hurting your business, you can easily renovate and remodel your commercial space to fit your business needs perfectly. Whether it is extra storage space, more room for offices, or a complete rework of the property layout – it is all up to you.
And if, and once, you decide to retire, doing so is much easier with the preowned property. You can lease it to other businesses and get a nice bonus atop your retirement check. Or you can sell it and invest in property better suited for retirees. Therefore, buying your commercial real estate gives you both short-term and long-term benefits.
On the other hand, buying commercial real estate is a substantial financial investment. If you can afford it out of your savings, great. But if not, you will have to consider financing options. If we focus on Austin, you will have to pay $281.07 on average per square foot. Depending on the size of the property, this can be quite a costly investment. And there is no guarantee that it will pay off.
Keep in mind that businesses fail for a multitude of reasons. Even if you have a top-notch idea, you can mishandle your marketing, not hit your target demographic, or simply be a victim of corporations. And having to pay off your mortgage after failing is a situation you really don’t want to find yourself in. You can consider selling your property. But there is a good chance that the value will be lower than when you bought it.
Leasing real estate
With all that we have listed so far, you are likely to at least consider leasing commercial real estate for your business. After all, if you feel that your business comes with a fair bit of risk, you don’t want to make any permanent commitments.
Let’s say that you’ve decided to move your business to a new area. You’ve done your market research, organized the commercial aspects of your business, and found office moving professionals that are right for the job. Unfortunately, even with all that preparation, and proper organization, there is no way of knowing whether you’ve made the right call. After all, no one can see into the future. A booming market with relatively low competition in your industry can easily turn. The completion can quickly come in and potentially beat you. Or the market can lose its potency. In either case, you’d be able to cut your losses quickly and start your business elsewhere rather than deal with the complex process of trying to sell commercial property.
In short, leasing commercial property gives you freedom. Freedom to find the best location for your business and move it there. This fact alone gives you breathing room to experiment with your business and explore different options. You can test out a market and see if your business can gain revenue. If and when it does, you can see about purchasing a property. If not, simply close the shop and move.
If you consider long-term expenses, leasing commercial real estate is expensive. The average asking rent for commercial real estate in Austin is $42.69 per square foot. Therefore, if your business does take off, it won’t take very long for your lease to become less and less cost-effective.
Furthermore, you will have to deal with the owner. Plan on making any changes? Well, first you will have to get the OK from them. Is there a problem that they need to fix? Then you will have to go through the arduous process of convincing them. If your business is doing well, they might even decide to up your rent. So, leasing commercial real estate can be stressful, depending on the owner.
Final advice on buying vs. leasing commercial real estate
As we said before, deciding between buying vs. leasing commercial real estate is rarely easy. There are a lot of factors to consider and risks to weigh out before you commit. The safest course of action is to always lease commercial real estate if you are dealing with an unknown market. Even if you situate your business properly, it will likely take years before it truly takes off. Once that happens, you can consider buying. But doing so before that happens is usually an unwise choice. Buying commercial real estate is an investment, just like any other. And you need to take stock of both long-term and short-term implications before you make a decision.
Guest Blogger – Jimmy Riddell spent decades helping people organize relocations and seeing them through. Now, he uses his ample experience to write helpful articles for companies like USA Moving Reviews.
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Things you shouldn’t settle for when buying commercial real estate
Buying commercial real estate is rarely an easy endeavor. It is a sizable investment that entails long-term commitment and a fair bit of forethought. In some cases, it is plainly obvious that your investment will be fruitful. In others, it can be hard to determine as there are different pros and cons to consider. But, in certain instances, there are some factors that you shouldn’t settle for. In this article, we will focus on these factors and how to recognize them as soon as possible.
Everything you shouldn’t settle for when buying commercial real estate
There are many reasons why someone might buy commercial real estate. You may want to run your business from it, or you may want to use the commercial estate to generate revenue. It may mean that you plan on flipping the property or that you want to rent it out to a company. All these situations can put different requirements on what you are looking for and determine which factors are more important. But, there are certain situations where buying the property is simply not wise, no matter what you plan on doing with it.
Not having the legal paperwork
In an ideal world, every piece of real estate would have no legal issues behind it. If a person owned a place, they would have the full right to sell it, rent it, or reside in it. But, unfortunately, we do not live in the ideal world. A surprising number of commercial real estate properties don’t have the necessary legal paperwork to be properly sold to a new owner. If the current owner is honest, they won’t even try to sell the property until the legal aspect is taken care of. But, honest owners are few and far between. It is not uncommon for owners to put the property up for sale, stating the legal issues are “practically settled”. If you hear or read this when considering a property, know that it isn’t something you want to be a part of.
Substantial building issues
It is not uncommon to find a commercial property with some damage. If there hasn’t been anyone using it for a while, and the owner hasn’t bothered with maintenance, you can easily find broken windows, rundown carpentry, cracks in the wall, etc. These are all relatively minor issues that are inexpensive to fix. But, what you need to look out for are substantial problems.
It is not uncommon for building managers to try to sell you something that will cost you a fortune to fix up. Structural damages, roof issues, wiring or plumbing problems, etc. All of these can be pretty costly to fix. Keep in mind that the building will have to pass an inspection before it is put to use. And if you make a deal with the owner before the inspection, you’ll be responsible for all the piled-up issues. Some buildings are easier to destroy and build up from scratch than to fix. So, if you see substantial damages that have been accumulating for a while, strongly consider giving the real estate a pass.
Not suitable neighborhood
If you plan on using your real estate to run a business, you ought to consider the neighborhood. Some pieces of real estate seem like a tremendous opportunity, but only because they are situated in a poor location. Know that your employees will have to get to and from work with relative efficiency. And if you cannot provide decent parking for them, they might be reluctant to work for you. Furthermore, dangerous neighborhoods can be a problem, as you might have people breaking into your office building while you are away. So, if you are unfamiliar with the area, try to avoid purchasing commercial real estate.
This is especially important to remember if you are moving to a different town. In that case, you need to find a local real estate agent to help you. Besides current issues, there can be future development plans for the neighborhood. These can change the property value and even put your commercial real estate in jeopardy. Just like you shouldn’t try to move your business on your own as reliable professionals can do this, neither should you attempt to find a piece of commercial real estate on your own. Thus, hire local professionals to help you find a suitable property.
History of failed businesses
When inspecting a new piece of real estate, it can be hard to consider all factors. Besides the quality of the real estate itself, different not-so-obvious aspects can have a tremendous impact. There can be noise issues that only occur within a specific time frame. There can be smells that come from improper plumbing. How are you supposed to know about these issues in advance?
Well, the safest way to get a hint is to see the history of the building. If numerous previous businesses stayed there for a while and then either failed or relocated, know that something is wrong. Ideally, you will be able to contact one of the businesses and see what the problem was. If not, try not to assume that your business will fair any better simply because you are running it. Instead, if an offer seems too good to be true, know that it probably is.
Why are you buying commercial real estate?
So far, we’ve only mentioned factors that stand try for any piece of real estate. But, apart from these, other factors can play a role. For instance, if you plan to rent out the property, you need to consider what businesses you will rent it out to. Some require on-site storage, while others require increased ventilation. You may even need to invest in climate-controlled storage or develop a parking solution for a large number of employees. All of this might not be as important if you plan on simply flipping the real estate for a profit. So, carefully think about why you are buying commercial real estate before and why you are interested in a particular property before you do so.
Article provided courtesy of Ryan Clark. Business management writer. He has also cooperated with mastermovingguide.com
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A bad location for the commercial space will lead to loss of customers
The location of your business can hinder or help your growth. Unfortunately, many people overlook this fact and make improvised decisions based on their likes or dislikes and end up with bad commercial space. But there are many factors to consider before choosing the perfect location for your business in Austin. Picking an area that has poor accessibility will severely hinder your company’s progress. If there are no parking spaces, your customers and employees will waste time searching for one. Next, if all your customers are on the other side of Texas, you will not be able to establish quality service and communication. Likewise, how close you are to the competition will also influence productivity, for better or worse.
A sign of bad commercial space is the lack of readily available parking spots.
A crowded commercial space kills creativity
Imagination is an excellent tool for finding solutions for “impossible” problems. With it, we can make connections that lead us toward a goal that, at first glance, looks unattainable. However, for it to flourish, the workers need to feel comfortable and able to express themselves freely. Unfortunately, if they are working in a crowded office with minimum space and no privacy, it will be impossible for them to get the creative juices flowing.
If we are to successfully move out of the pandemic and back to work, this is something that needs to be solved immediately. Nobody will feel productive if they are supposed to exchange their calm and private home space for a packed one. Likewise, no room to move will cause more friction between employees. Therefore, even when choosing an open floor plan, it is better to have fewer satisfied people working in it than an unhappy crowd.
An office without shared space lowers productivity
Teamwork is where all the great ideas come from. However, if you do not have a secluded space where meetings can be held in a private atmosphere without interruptions, it will definitely lower productivity. Likewise, for successful business growth, a space for relaxation is also needed. A place where employees can unwind, destress and casually chat is key for keeping high efficiency levels. Not to mention that for many people looking for employment in Austin, TX, this is a number one requirement. Thus, you will also have a better chance of finding quality workers if you offer them space that is welcoming and caters to all their needs. For example, game rooms are perfect for developing teamwork and boosting communication.
A place to chat and relax will boost productivity.
No space for conducting business with clients
The lifeblood of any business is its clients, and their utmost satisfaction is imperative. So if your commercial space in Texas does not have adequate space for them, you are in trouble. It means you will have to conduct meetings in a crowded area with employees or an office not designed for this. And first impressions are everything when it comes to working with clients. If they think you are ill-prepared for welcoming them, they will start doubting how well you can do the work. Therefore, there always needs to be a space in your company that is designed with a specific task to make them feel comfortable and respected.
A private meeting room for clients is essential for growing a successful business.
Avoid stressful office relocation
The most significant source of stress and anxiety among employees is office relocation. Moving to an entirely new location in Texas usually means they have to uproot their lives and leave behind everything familiar. Thus, it is vital to manage it so that you can settle hassle-free into your new premises. And the best way to accomplish it is to start planning well in advance.
With so many departments interconnected and having to work uninterrupted, it is best to appoint one person to manage everything. However, be sure to choose a person that is well familiar with the workings of every branch, for they will know how best to organize everybody so that the work does not suffer. Likewise, an office-wide announcement about the move followed by a presentation is a must. Employees will have the opportunity to ask all the questions and get all the necessary information. Lastly, choosing an experienced moving company is of the essence because they will swiftly relocate your business so that work can resume quickly.
With bad commercial space, it is impossible to grow and expand your business. However, it is not only because of a decrease in productivity. It is also about attracting the young minds that bring with them fresh viewpoints that will open many doors. Finding prospective new employees is of the essence if you wish to succeed in the Texas corporate world, not to mention attracting clients and maintaining the workflow. Therefore, as soon as the signs of reduced productivity appear, look for ways to improve your commercial space and working conditions.
Guest Author Bio: Carl Crawford works closely with Heavenly Moving and Storage as a professional consultant and content creator. With an extensive background in logistical planning, he helps clients optimize their moving solutions for time and cost-effective results.
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How to choose the perfect location for your business in Austin
Considering how Austin is one of the best places for startups in the US, it comes as no surprise that many small and medium-sized businesses are rushing to establish their premises here. However, many critical factors should be taken into account if you want to choose the perfect location for your business in Austin. For this reason, we are going to talk about everything you need to consider if you plan to move your business to Austin, TX.
With the end of the Covid-19 pandemic slowly approaching, many businesses are going back to work. Firstly, the type of business you run or plan to establish will influence your location choice in Austin. Most companies will find all the amenities and services their staff may need in business parks, strip malls, or commercial centers in the Austin area.
However, the costs of lease can be quite exorbitant in these areas of Austin. Hence, you will need to do your research thoroughly and make an informed decision based on the following factors.
Decide what type of location suits your business best
Most business locations fall into the following five types. However, there is an onslaught of relatively novel business models such as co-working spaces. Also, hybrid businesses split their operations into several different location types. Specifying how you want to organize your business operations should bring you closer to choosing the perfect location for your business.
Some companies, primarily startups, choose to set their premises on a residential property. There are obvious financial advantages to opting for this location, as lease costs are usually lower in residential neighborhoods.
Yet, space restrictions and accessibility might present themselves as a problem as your company expands. Hence, this choice is only tenable if you do not have a lot of employees. You might also face certain difficulties such as lack of parking space, higher commute times, and distance from cafeterias and restaurants where your staff can eat affordably.
So, if your company plans to hire more than ten employees on a long-term basis, you might have to disregard rental costs and choose to base your business in a commercial building.
Suppose you find that the usual brick-and-mortar spaces in shopping malls and busy Austin streets are too costly. In that case, you can base yourself as a retailer in the Austin-Bergstrom airport, special event stands, or any commercial ground floor space in a residential neighborhood.
Leasing costs in Austin and beyond have contributed to a noticeable rise in the number of businesses that commit to the mobile business model. So, for example, catering or commodity selling businesses can prosper without having a permanent address. A stand or a delivery-type of business allows you to move easily to and from heavy customer traffic locations.
Commercial office space
Commercial properties are specifically built and located to support all needs office-based companies may need as opposed to home businesses. This means your company will have quick access to parking, public transportation, and various surrounding amenities.
However, some commercial office complexes in Austin are not close to the central areas of the city. This makes them less adequate for businesses that depend on face-to-face interaction with clients and customers.
Consider the budget at your disposal
If you want to choose the perfect location for your business in Austin, you need to think about your finances. However, it is not only leasing that should fare into the calculation. Your budget should also account for location-related costs that are usually not covered by the lease contract or purchase price. These costs include taxing, interior renovations, utility bills, employee incentives, bonuses, etc.
Luckily, one of the reasons why so many businesses are moving to Austin is the looser tax policies aimed at supporting smaller and medium-sized businesses.
Hence, even if you run a mobile business, you are not beyond the mentioned considerations. To do business legally, make sure you have the necessary city permits to occupy the locations of your choice.
Another important budgetary consideration concerns the amount of time, money, and effort you have to invest in relocating to Austin, TX from another city or US state. Long-distance commercial relocations are typically more time-consuming and stressful in comparison to local or residential relocations. Therefore, be sure to do your research and find experienced professionals to take care of the process of your company’s relocation.
Consider your access to vendors and suppliers
Proximity and easy access to traders and suppliers that allow you to run your business are crucial. So, this is another factor that can play an important role while looking at commercial property listings. This means that you first have to contact local suppliers to find out to which part of the city they deliver the goods most readily.
Consider your brand when you choose your Austin location
Yes, your finances and access to goods are influential when choosing where to base your business in Austin. However, sometimes entrepreneurs and business owners make the mistake of overlooking the importance of the location for their business’ reputation.
Placing your main office in a suburban neighborhood might go against the professional image you want to present to the world. However, Austin has become reputed for its up-and-coming, gentrified vibe. In addition, many tech companies have established their premises in Austin in the last few years.
This means even non-central neighborhoods can work towards building an urban flavored, favorable brand appeal in Austin. However tempting, price considerations should nevertheless be secondary when you choose the perfect location for your business in Austin.
Guest Author and Regular Contributor – Joanna Lewis is an SME-oriented business operations manager and advisor. Her line of work mainly constitutes managing her clients’ growth-oriented business plans. As part of her service, her collaboration with Best Long Distance Movers helps her clients improve their financial performance by relocating their business premises.
Permanent link to this article: https://atxre.com/how-to-choose-the-perfect-location-for-your-business-in-austin/
Most companies relocating to Texas are coming from California. Recently, we’ve seen tech giants like Tesla and Oracle departing from San Francisco. However, smaller startups like Markaaz are also moving their headquarters. This, of course, doesn’t mean that San Francisco will cease being the center of the tech industry. But there’s an undeniable migration going on.
Let’s dive in and find out what’s behind all of this.
Friendly business climate
Austin has a lot to offer to the companies that choose it as their home. CEOs say that the business process is more straightforward and that people are simply lovely. It turns out that a warm welcome from pro-business local government bodies means a lot to these people. And it’s clear why when you think about it.
The chamber did everything it could to help companies quickly settle and get established in a new city. And they are more than happy to offer the same conditions to smaller companies. That’s why Austin is tops for startups. If this trend continues, we can expect to see more and more businesses following the footsteps of the companies that already came to Austin.
The opportunity to shape the business landscape
We don’t have to stress that Austin isn’t as developed or established as some other locations. However, this is a positive thing for lots of companies.
Markaaz, for instance, wants to be a part of shaping the business climate. That was difficult for them to achieve in California. On the other hand, in Texas, they greeted them with open arms. Because of its’ relative underdevelopment, Austin offers opportunities no other city in the U.S. can. All in all, this is a similar phenomenon that we’ve seen already. The last time it happened, it led to the growth of Silicon Valley. People fled Boston in search of better conditions, and they found them in the Golden State.
Today, the tables have turned. San Francisco started becoming what Boston once was, and people didn’t like that. So, they started looking for new places for their offices. Usually, when companies are relocating, they look for areas that are close to where they currently are. However, transferring your entire business to another state isn’t as hard as it once was. So, companies shouldn’t be worried about moving cross-country.
It’s no surprise that for most companies, taxes are lower in Texas. That’s one of the reasons why they’re relocating in the first place. However, it’s not the only reason.
Some companies, like Oracle, for instance, won’t benefit from lower taxes. They have offices all over America, so there’s no upside for them here. But, the cost of living in California is high. Therefore, they have to pay their employees more. On the other hand, they will not only spend less money on salaries in Texas, but they’ll also be able to give raises. In essence, moving from California to Texas could lead to long-term corporate savings. It all translates to a 5 percent margin that moves straight to profit. So, companies’ top executives will get more significant payouts. Naturally, they like this idea which is another reason why businesses are moving to Austin.
Another benefit that Austin brings with it is the promising source of skilled workers. There are some projections of skilled worker shortages in the state, but local universities assure companies that this won’t happen. This means that finding employment in Austin won’t be problematic in the future. And that is a good thing for anyone living there or thinking about moving.
Not only is the workforce cheaper in Austin, but the local universities also promise that there will be plenty of skilled workers on the market.
Some companies are concerned about the growing number of state-specific laws targeting wealthy people and businesses in the Golden State. For instance, they need to have at least one female director on their board. And by the end of this year, if you have six or more directors, three of them have to be female. Although this isn’t a bad thing by any means, it creates a problem for companies that already operate in a certain way. For example, Oracle has a board of 15 directors, and only four of them are women. This means that they would have to make some significant changes at the top of their command chain, and that’s not something they’re willing to do right now.
There are also talks about California imposing new taxes for individuals that hold more than $30 million and for the ones who are making more than $1 million a year. On top of that, corporations are asked to help raise billions of dollars to support the needs of the state’s homeless population. It’s not a surprise that giant companies are more than willing to move to avoid this.
However, it’s not all about the tax policy. There’s also a problem with housing in California. For decades, they haven’t been building enough of it. Texas, on the other hand, doesn’t have this problem. They have more than enough housing options for new residents. Therefore, it may be an ideal time for investing in commercial real estate here.
Big companies don’t like to change the way they operate, and that’s why they’re moving to Austin.
Silicon Valley has been the place to be for tech companies for quite some time. But, exorbitant housing prices, high taxes, and new regulations have made it challenging to do business and develop at the same time.
With the COVID-19 pandemic, companies have found ways to implement work from home strategies. And that system works better when the overall cost of living is low. So, the biggest reason why businesses are moving to Austin is that they’ll have more flexibility and room for growth.
Author’s bio: Thomas Campbell is an Austin based freelance writer currently working with Heavenly Moving and Storage. He loves to help people with his expertise in moving, business, and marketing. When he’s not writing, you can find him walking or cycling beside the Colorado River.
Permanent link to this article: https://atxre.com/why-businesses-are-moving-to-austin/
Moving Out of the Pandemic and Back Into Your Profession
The pandemic waylaid plans for many up-and-coming entrepreneurs. Although the ground remains a bit shaky, now is still a good time to start a business. Here are a few reasons why, as well as ways you can make the most out of the world in which we now live.
Austin is a hot market.
With nearly 1 million people, the greater Austin area is full of potential customers. Add that to the seemingly immeasurable number of online shoppers, a lack of clients isn’t an issue. If you’re looking to open a brick-and-mortar establishment, your buyer’s agent can help you get the best price and sort through properties so that you can focus on your business. Your agent will put you on the right track toward a commercial space that is both affordable and visible.
You don’t have to go it alone.
You already have a real estate partner on your side, but there are plenty of other helpers that can help you build your business one brick at a time. To decide what tasks to outsource, take a look at your areas of expertise. If data analysis is not your forte, for example, find a freelancer or service to execute these undertakings on your behalf. Any job that would take you longer to learn than to execute is worth the small expense of a one-time or recurrent service.
Interest rates are low.
While interest rates have started to rise, they remain low historically. And, depending on your credit and the type of financing you choose, Experian asserts that you might enjoy rates as low as 2 percent. Having a lower interest rate means that you’ll pay less money back, money which you can then put into your business, such as hiring a great staff or investing in equipment.
There are many in-demand businesses.
The pandemic took a swing at many industries, including travel, tourism, and restaurants. But there are still plenty of services that remain invaluable despite COVID-19 overstaying its welcome. Even if you are in one of the industries still struggling to survive, you have plenty of opportunities to cater to American consumers today. For example, instead of opening a traditional restaurant, consider offering a spaced-out atmosphere where parties can social distance while they dine. In the same scenario, you might also consider a mobile food business, which The Hartford also asserts is one of the better businesses to get into right now.
Remote work can save you money.
Just a year ago, many micromanagers were reluctant to allow people to work remotely. One positive thing to come out of the pandemic is that working from home is now accepted and often preferred. Even if you do invest in a commercial property, you can utilize a remote workforce for many white-color positions, such as accounting and customer service. This means you can reasonably save on office space and other overhead expenses associated with an in-person workforce. Workflow software and videoconferencing can make cubicles a thing of the past.
Starting your own business is, without question, the best way to take control of your financial future. And, given that the virus is unlikely to leave anytime soon, it’s time to adapt to our new environment. Now’s a great time to get started for the above reasons and also for your own personal needs. So move forward without fear and know that things will get back to normal one day. When this happens, you will already be established and in a great place to continue to serve your customers and your community while providing for your family on your own terms.
Mark Pustka is an Austin-based commercial real estate broker that can help you find the professional building of your dreams. Contact Mark Pustka today by calling 512-486-3737.
Article brought to you by Guest Blogger, Derek Goodman
Permanent link to this article: https://atxre.com/moving-out-of-the-pandemic-and-back-to-work/
Why Austin is the top place for startups
Austin, Texas, has seen a large influx of tech workers and startup companies. It’s not just newly founded companies that are heading to Austin. Tech giant Elon Musk has stirred up quite the buzz regarding his announcement that he is relocating to Texas. In this article, we will dive deeper into why Austin is the top place for startups. It has been a popular destination for starting a business for a few years now. Additionally, we have seen major tech companies like Facebook, Google, and Oracle move their corporate headquarters to Austin.
Just in case you were wondering what startups are, let’s have a quick breakdown. A startup is a term used for companies or ventures that are mostly newly founded. They are usually focused on a single product or service and are intended to scale and grow quickly. The product or service they are developing or offering is frequently based on new technology and online services. Many of today’s largest tech companies began as startups. Sometimes the business model isn’t fully developed, or the company might be lacking the capital they need to go forward. Besides looking for funds and investors, startups also need affordable locations to house their offices. Now that that’s out of the way let’s look into why Austin is the top place for startups.
How Austin became a tech capital
Startups and tech companies in Austin didn’t multiply overnight. Austin’s rise to tech fame began more than ten years ago. During that time, most other American cities were still struggling to recover from the recent economic recession. On the other hand, Austin already had companies like Google, Apple, and Amazon, that were working on expanding their presence. And it’s not just startups that are setting up in the city; it seems like everyone is moving to Austin. The population continued to grow over the years, and Austin ranked first among 50 U.S. metro areas with the largest percentual net population gain. By the year 2040, Austin’s population is supposed to exceed 4 million people.
What’s so great about Austin?
We learned many things from the past year and the COVID-19 outbreak. One of them is that it’s possible for a bunch of people to work from home. Anyone who spends their time working in front of a computer could work from more or less any location. So, if anyone can work from anywhere – why are tech companies and startups moving to Texas? The post-corona atmosphere has many large companies turning to Austin as the new Silicon Valley. In many ways, Austin has already superseded this notion. After all, the city was named CompTIA’s top 2019 Tech Town.
Reasons why Austin is the top place for startups
- Talent tends to congregate – we already mentioned that there is a well-established presence of big IT companies in Austin. Those companies continue to grow and attract more similar talent. What better place to establish a business based on new technologies than right next to the people developing them?
- Low crime rate – Austin ranked as the fourth lowest in the nation among cities with a population larger than 500,000. This makes Austin a safe place for family life.
- Tax structure – Texas has no personal income tax, and the state also has no corporate tax. This combination is very lucrative for growing businesses. Company founders can easily invest profits into their future ventures.
- Innovate Austin – thelocal Chamber of Commerce is pushing for economic development and is very supportive of new businesses. The Innovate Austin program aims to provide job opportunities through leadership and strategy. They are primarily focused on innovation and technology-based companies making Austin the ideal place for startups.
- Low cost of living – the cost of living in Austin is 15% below the national average. Being able to stretch the dollar is essential to everyone, especially those who are just starting their businesses. This is another driving factor that is pushing young tech-educated people to seek job opportunities in Austin.
- Warm weather – summers in Austin are typically long and warm, while winters are short and mild. During winter, there is the occasional burst of cold weather called a Blue Norther. Snowfall is, for the most part, very rare.
Moving to Austin
Now that you have made up your mind about setting up your business in Austin, there are still a few more things to cover. One of the main issues is getting there. Relocation can be a bit complicated if you already have an established business. If that is the case, you will probably be traveling with some inventory. We recommend finding reputable long distance Texas movers who can provide easy transfer from all over the state. Business inventory for tech startups can include many fragile and expensive pieces. You will want those to be handled with the utmost care by professionals.
Another thing you will need to consider is finding a suitable office space for your business. Austin has numerous commercial properties that are available. With the help of an experienced agent, you will easily find offices or shared spaces. Cutting down on the costs is especially important for any growing business. Besides saving money, a good agent will help you find the right space for your business quickly. Saving time is vital for any startup that plans to hit the ground running.
We have gone through the reasons why Austin is the top place for startups and how it became the United States tech Mecca. Most of those reasons are appealing to any business, whether it’s already established or just starting out. Who could say no to low living costs, a welcoming tax policy, and warm weather all year round? Businesses and individuals from many different fields are relocating to Austin. Perhaps it’s time you joined them.
GUEST BLOGGER, Perry Benson
Author bio: Perry Benson is a freelance blogger whose main interests are the tech and IT scene. Writing for Verified Movers, a reputable moving broker, lets Perry keep his ear to the ground and successfully inform people on current information in the moving industry
Permanent link to this article: https://atxre.com/36028-2/
Important questions to ask before investing in commercial real estate
Whether it is for running your business or renting out, investing in commercial real estate can be a great idea. But, as with most things related to real estate, you need to tackle it with proper care. To help you out, we will go over some important questions to ask before investing in commercial real estate.
What to ask yourself before investing in commercial real estate
Before we go over specific questions, we first need to establish why you are investing in commercial real estate. While you should always try to find the best piece of real estate for the smallest amount of money, you must keep certain distinctions in mind. These are based on whether you wish to run your business from your new location or rent it out. With this in mind, we will separate the two into different paragraphs.
Investing for running your own business
One of the most important questions to ask before investing in commercial real estate for your own business is whether the property will improve it. As said before, there is hardly a commercial piece of property out there that is cheap. Therefore, you need to figure out whether your investment is worth the cost.
A good time to relocate your business is when it is picking up and when you know that it will benefit from the relocation. This requires a deep understanding of how your business functions and how your location and environment effects it. Aside from being expensive, know that commercial moving is often quite arduous and complicated. So, do yourself a favor and carefully consider whether moving your business is the right call. Know that if customers have grown accustomed to your current location, you will experience drawbacks from changing it.
Investing in order to rent out or flip the property
On the other hand, if you plan on renting the commercial space to other businesses, there are different aspects that you need to consider.
First, you need to analyze the area where the real estate is situated. Doing so will help you figure out what business potential the real estate holds. Plenty of businesses live or die based on where they are located. And even a block or two can make a world of difference. For instance, say that you are planning to purchase real estate in Austin. There is a reason why so many people are deciding to move there. With some research, you can find out that Austin offers numerous opportunities for people from all walks of life. But, you need to dig deeper and learn how those opportunities are spread. Only then can you make an educated decision on where to invest.
Secondly, you need to consider the interior of your commercial real estate. Apart from location, the interior is one of the most important aspects, especially when it comes to productivity. While commercial space does leave a lot of room for creativity, there is a limit to how much you can alter a particular space. So, do the smart thing, and try to predict the interior layout of the property before you purchase it.
What to ask the real estate agent
If you plan on dealing with real estate responsibly, you will have to hire a real estate agent. Sure, modern technology does allow you to do your research and even purchase real estate without one. But, having an experienced professional by your side is a must. Unfortunately, not all real estate agents are capable of helping you out, even though most will say that they are.
For now, we will assume that you’ve done all that is necessary to find a suitable real estate agent. What you need to do now is use their knowledge of the local area and the experience in dealing with commercial real estate and prepare a list of questions to ask before investing in commercial real estate. You agent will help you figure out whether your investment is a sound one.
What is the history of real estate?
If a piece of real estate catches your eye, you’d be wise to inquire about its history. Knowing what that real estate went through and why it is currently for sale can save you from potentially catastrophic mistakes. If the previous owner used real estate to run a business, try to learn why it failed. As we have mentioned, location can play a significant role in how successful a company is. So, try to understand what circumstances lead to that piece of real estate being vacant. If you lack the motivation to do so, keep in mind the great quote that person who doesn’t learn from history is bound to repeat it.
Are there any plans for the local area?
Another critical thing to remember when purchasing real estate is that neighborhoods change. Whether you like it or not, the area where you plan to invest in commercial real estate will change. Of course, no real estate agent can see into the future and tell you precisely what that change will be like. But, a good real estate agent that keeps track of commercial real estate trends can give you a pretty good estimate. By knowing this, you can both figure out whether your business will flourish in the new neighborhood. Or, if you plan on renting, whether you should expect companies to come and seek commercial space.
The weird thing about questions to ask before investing in commercial real estate is that the more you ask, the more questions seem to pop up. But, in actuality, this is good. If you ask before investing in commercial real estate, you will learn valuable information that should inspire you to analyze further. That further analysis will then bring more questions, and so on. All that we are saying is that the questions we’ve outline shouldn’t be seen as “all you need to know.” But more in light of “where to start” when it comes to researching investments in commercial real estate.
Guest Author bio:
Jake Dober has worked as a professional mover and moving coordinator for over 15 years. He now focuses on writing helpful articles for companies like Evolution Moving.com
Permanent link to this article: https://atxre.com/important-questions-to-ask-before-investing-in-commercial-real-estate/
In January 2020, The Statesman noted that Austin had concluded the final quarter of 2019 riding high and the office market was looking at optimistic forecasts for 2020. The city had, indeed, been seeing one of the fastest metropolitan growths in the country. In 2020, Austin office space has attracted big-name relocations and footprint expansions, including Tesla Motors, Oracle, and Samsung.
In the final quarter of 2020, the Austin office market was still performing well above average, despite quite a challenging year. According to a recent study released by commercial real estate listings website CommercialSearch.com, two Austin office submarkets ranked among the 50 most expensive in the country, in Q4 2020.
Specifically, office properties in East Austin commanded the highest average office asking rents in Texas—the submarket ranked 40th nationwide, with full-service equivalent asking rents resting at an average of $60.60 per square foot at the close of last year. The second-priciest office space in Texas was found to be in Downtown Austin, where office asking rents averaged $58.81 per square foot per year, which landed the neighborhood 46th of 50 entries.
The snapshot report considered all U.S. office submarkets with at least 10 listings of office space for rent during Q4 2020, including only office properties equal to or larger than 25,000 square feet. According to the article methodology, the research team analyzed a total of 992 U.S. office markets, and focused on the top 50, by average asking rent.
Along with Austin, top 50 ranking entries included submarkets from Boston, Washington D.C., Miami, New York City, Los Angeles, San Francisco, and the Bay Area. In fact, California submarkets continued to dominate the ranks of top-dollar office space and accounted for 29 entries of the total.
New York locales from Manhattan and Brooklyn took the other part of the lion’s share, occupying 13 of the remaining 21 spots. For the full list and nationwide highlights, read the original article here.
Ioana Ginsac | CommercialEdge Listing Network |
Permanent link to this article: https://atxre.com/austin-ranked-among-the-50-priciest-u-s-office-markets-in-q4-2020/
It is widely known that Austin, Texas, is becoming a prominent city in the financial world. Accordingly, various start-ups, new companies, and established ones on the rise are moving their offices to Austin’s financial district. With investment advisors, tax consultants, law firms, insurance agencies, and entrepreneurs, Austin’s business district is becoming a financial Mecca. It offers excellent career prospects for individuals and companies that move to the area. If you have been considering moving your business operations here, you might be interested in finding out more about the cost to lease office space in Austin.
This is an important consideration since you will surely need a functional office to give a head start to your projected business plans. Without a functional and stimulating workspace, particularly in such a competitive market, you might find it challenging to join the ‘rat race’ and achieve your business goals.
Luckily, if you arm yourself with some insider intel, you will be able to bridge the initial gap and rent office space in Austin that perfectly suits your needs. Therefore, we have done some research and noted all the things you should know before settling for office space in Austin, Texas.
How much does it cost to lease office space in Austin by location?
As we have mentioned, Austin’s business market has become a force to be reckoned with, with many thriving businesses establishing their offices here. This has stimulated the commercial real estate market to catch up with demand, which has, in turn, given rise to several districts developing commercial real estate areas that could accommodate your planned lease budget.
However, if you are new to the business or unfamiliar with commercial real estate general trends and terms, understanding the complex office space pricing per square foot could present a challenge at first. Namely, even when you are informed about the general renting costs of commercial real estate properties in Austin, this does not mean this might be the total cost of any particular property of your liking.
The key is to take into account the exact location of the property in addition to the class of building in which you are interested in leasing office space.
Office space lease rates vary depending on the office building type and location.
Renting office space in Downtown Austin
A few years ago, Downtown Austin was mostly occupied by government institutions, lobbyists, and law firms. However, tech and software companies have been rushing to Austin, TX in significant numbers in the last couple of years.
If you are interested in leasing somewhere in Downtown Austin, you need to be aware that what you can find in this area are predominantly Class A buildings, with only a few Class B and Class C buildings. This means that this is a Class A neighborhood, and the pricing of office space reflects this.
So, you have lease rates ranging from $35 to $40 per square foot for Class A and, in some cases, Class B buildings, with an occasional Class C building priced at around $20 per square foot. Note that you have to pay additional monthly parking fees that range from $125 to $175, in most cases!
You have to pay extra for parking spaces in Austin, TX.
A big parking lot in front of an office building, the price of which should be considered when calculating how much it will cost to lease office space in Austin
Renting office space in Southwest Austin
The same goes for leases in the Southwest Austin area. This is also known as an expensive area, but for slightly different reasons. As in Downtown Austin, the buildings here are predominantly Class A graded, with only some Class B and C buildings. Renting in Southwest Austin is priced like this because there is not a lot of office space available for lease in this area.
Lease rates in the Southwest Austin area go from $28 to $38 per square foot. If you are lucky enough to find a Class B office space, your monthly rental expenses should be $22 to $24 per square foot.
Southwest Austin is known for its high rental prices for Class A buildings.
Renting office space in West Austin and Northwest Austin
If the lease cost in Downtown Austin and Southwest Austin exceeds your budget, you might want to look into commercial real estate listings in West Austin and Northwest Austin. There are so many less expensive options here because buildings in these two areas are primarily Class B options, which are priced moderately compared to Class A ones.
West Austin is known for accommodating class B buildings and medical office space, with average lease rates running from $24 to $27 per square foot. Further on, you can find many Class B office buildings in Northwest Austin at around $23 per square foot.
Also, no matter where in Austin you find the perfect office building to settle your business operations in, make sure you hire a reliable moving company with the necessary expertise and equipment to handle the transfer of your inventory to Austin in a quick and organized manner.
Renting office space in Northeast Austin
If your business practices do not require you to worry about proximity to the business districts and various amenities located there, you should forward your gaze towards Northeast Austin. This part of the city is known for affordable commercial real estate, with the lowest lease rates in the city ranging from $18 to $22. Given the reasonable cost to lease office space in Austin, particularly in this part of the city, many non-profits and start-up companies rent office space in Austin in general and Northeast Austin in particular.
Stephen Parker is a consultant with Heavenly Moving and Storage. He has assisted with numerous relocations, both commercial and residential, local and international. Since he is an avid reader, he has discovered he has a thing for the written word. He tried his luck as a content writer for his company and now he provides content for other interested parties as well. In his free time, besides reading and writing, he enjoys hiking in nature.
Permanent link to this article: https://atxre.com/how-much-does-it-cost-to-lease-office-space-in-austin/
Commercial real estate trends to watch in 2021, Courtesy of Author, Mark Ortega
Commercial real estate trends to watch in 2021 will largely be the aftermath of the all-encompassing, show-stopping influence of the Covid-19 pandemic that has turned not only the national but also the global real estate market ‘upside down’ in 2020. Leasing and transaction patterns observed over the past few years encountered a steady rise at the beginning of 2020. However, industry professionals note that the virus threw forecasts for the year 2020 into complete disarray. Let us take a look at what 2021 has in store for commercial real estate.
Main commercial real estate trends to watch in 2021
The following commercial real estate trends are expected to be observed in the next year.
Brick-and-mortar shops and strip malls are struggling.
Warehousing and other types of distribution facilities have been experiencing greater developer activity due to the greater e-commerce demands in 2020. This trend is likely to continue well into 2021, especially given that brick-and-mortar shops struggle to make ends meet in the midst of Covid-19 lockdowns, general hygienic and social distancing measures, and increased e-commerce activity. Henceforth, many retail companies have switched to e-commerce as their main selling point, mostly due to the inability to pay commercial real estate leases.
Retail and restaurant rental activities are also unsteady.
Just as shops and malls struggle with paying their rental responsibilities, the Covid-19 pandemic has not been favorable to restaurants and other types of retailers. E-commerce had been expanding its influence at the cost of retailers even before the virus. However, online-based shops exhibited an unprecedented increase in profits since many nonessential shops and companies had to close down in the wake of the pandemic.
Some tenants have resorted to unconventional solutions to paying rent to stay afloat in 2021, such as paying rent in monthly installments that amount to a percentage of their total revenue until the global situation goes back to normal.
Warehouse leasing is a commercial real estate trend to watch in 2021
As mentioned above, warehousing has immensely benefited from the current shifts in large retail chains’ business operations. So, warehouse and industrial leasing have marked a significant rise in activity, with no indications of weakening any time soon. This is particularly characteristic of warehouse centers located around densely populated metropolitan areas.
This trend is especially true for e-commerce giants such as Amazon due to an increased demand for storage, dispatch, and delivery points. In fact, Amazon alone has extended its network by 100 new warehouse units in September 2020 alone to accommodate the upcoming Black Friday and Christmas holiday shipping demands.
Warehouse and storage facilities should continue to be in demand in 2021.
The future of the commercial office space sector is unclear.
Since many companies have been forced to switch to home office working, the office sector has been experiencing a reduction in rental agreements for the year 2021. Consequently, commercial real estate experts are divided when it comes to forecasts regarding the upcoming fiscal year.
On the one hand, it seems as if distance working could become prevalent in the following year with many companies adapting to government pressures to reduce the number of Covid-19 cases.
Many commercial properties have become vacant in the wake of the Covid-19 pandemic.
Otherwise, some experts predict that the current work-from-home regiment will not extend long into 2021, given its detrimental influence on companies’ work culture. This is good news for the commercial real estate sector, which seeks to backtrack the unprecedented number of office vacancies that have been the leading leasing trend this year. Other favorable forecasts include the predicted doubling of coworking spaces and other flexible office space locations in the next few years.
Shorter leases of office spaces are likely to remain the norm.
Given the precarious state of post-Covid-19 economic markets, tenants have expressed even greater interest in obtaining shorter leases than in the previous years. Considering this, it is highly likely that this caution will be guiding rental behavior in 2021. So, landlords in the commercial real estate sector will have to adapt to this trend with heightened flexibility and rental grace periods if they wish to compensate for long periods of commercial building vacancies that have marked 2020.
Accordingly, long term leases such as 15-year or 10-year rental contracts might become a thing of the (pre-Covid-19) past, with new rental agreements signed for shorter periods. Therefore, a business may need commercial moving services from gomovers.com sooner rather than later. Also, those who intend to switch back to working in an office will have to ensure the company they hire is compliant with all Covid-19 sanitary measures.
There is a high probability that lease contracts will be short-term rather than long-term in 2021.
Subleasing of commercial rental space is likely to ‘balloon’ progressively in 2021
One of the key commercial real estate trends in the last few months has been the sharp rise in the amount of commercial rental space available for sublease. In fact, to take Manhattan as an example, some market analyses have uncovered that the current leasing bubble has reached an all-time high in 2020.
Since most enterprises try to cut spending, the trend of retracting offers on extending their current rental agreements has been the key strategic move of companies attempting to backtrack some of the incurring losses they have experienced. However, more commercial office space available for subletting leads to a significant reduction in office rents, which could stimulate commercial rental activity, which has the potential to be one of the major commercial real estate trends to watch in 2021.
Real Estate Technology Trends to look for in the coming year.
This article, “Real Estate Technology: 9 PropTech Trends You Can’t Ignore in 2022” does a good job of explaining the coming technological trends to look for in the next year including – Artificial Intelligence, More Property Search Platforms, 3D Virtual Tours, and Drones to name a few.
Author: Mark Ortega has extensive experience working in the commercial real estate sector as a leasing consultant for moving and self-storage companies. Understanding the erratic trends of the commercial real estate market has so far allowed him to accurately predict key trends in most US economies.
Permanent link to this article: https://atxre.com/commercial-real-estate-trends-to-watch-in-2021-a-national-perspective/
Investing is an attractive prospect for many business professionals who are interested in real estate. But breaking into commercial real estate can seem daunting, especially if you haven’t dabbled in any type of real estate before.
For an introduction to everything you need to know about commercial RE development, check out these FAQs from ATX Real Estate.
Q1: How do I get started in commercial real estate development?
A1: You must earn a real estate agent or broker license to sell real estate where you live, plus organizational paperwork to establish your company.
Q2: How do I know if a commercial property is a good investment?
A2: Determining commercial property values can be complicated. Looking at the location and amenities is a solid start, but you’ll also want to calculate whether the property offers a good return on your investment and ensure you have a solid lease agreement.
Q3: Why should I consider investing in commercial RE?
A3: The potential for high profit margins is one reason why many investors dive into the commercial real estate business.
Q4: How do I fill a vacancy once I buy an investment property?
A4: You can market your property on your own or hire someone to handle the rental for you.
Investing in commercial real estate may be a lucrative way to develop your own business. By exploring these resources, and other content from ATX Real Estate, you can learn everything you need to know to decide whether commercial RE is the best move for your professional future.
Permanent link to this article: https://atxre.com/commercial-real-estate-faqs-13-resources-for-getting-started/
- Absorption in retail continued its slide registering a negative 162,000 SF in the fourth quarter of 2020.
- Occupancy remains steady at 95%.
- Average asking rent increased from $20.25 to $20.50/SF quarter over quarter.
- Projects under construction increased by 100,000 SF + in Q4 with some 161,000 SF of new construction coming online in Q3 of 2020.
CBRE Research, Q4 2020.
Permanent link to this article: https://atxre.com/austin-retail-slowly-showing-signs-of-stabilizing-in-q4-2020/
- Austin and Dallas are currently the only two major markets with positive office using employment growth year over year. These markets have however seen available sublease space increase significantly since April.
- The asking Average Full Service Listing rate for Austin was $42.63/SF/Year as compared to the National average of $38.11/SF/Year
- The asking Average Full Listing rate has increased 5% over the last 12 months, compared to the national average of .6%.
- Total vacancy in Austin is at 11% compared to a national average of 13.4%.
- Compared to Dallas that currently has a $27.80/SF/Year Average Full Service Listing rate, down -3.4% over the last year and with a vacancy rate of 17.4%.
- Over 7 million square feet of office space are currently under construction in Austin, almost 10% of the total stock.
Permanent link to this article: https://atxre.com/national-october-office-report-from-commercialedge-with-focus-on-austin/
Tips on choosing the right office space for your Austin-based business
Going through the overwhelming process of choosing the right office space for your Austin-based business can be challenging. With the COVID-19 outbreak affecting the real estate market, there is no room for error. With that in mind, let’s see how to make an informed decision that will benefit your business in the long run.
Why are Austin-based commercial properties highly valued?
Austin is known as the tech hub in the US. However, the city is such a good place for a business because no industry holds the market. Everything from government services to health care and beyond is well developed. The array of industries that operate in Austin is wide.
Austin has developed a strong and versatile commercial real estate market to back up the growing company needs. The variety of choices is large, and everyone can find exactly what their business needs.
Work with an experienced real estate agent
Buying a property on your own is formidable. However, it is not something you should do at the moment. With so many companies closing and the real estate market going through fluctuations every day, you have to think about the best approach.
You need an experienced hand of a professional commercial real estate agent to guide you through the process from start to finish.
Nevertheless, understanding how to choose the best office space for your needs is vital. In the end, you are the one who has to decide whether to purchase or not.
Know what you want
The first thing you should do is sit down and talk with your real estate agent. They need to know you, your company, brand, and your employees. The more they know about the business, the better.
Commercial real estate agents work with companies all the time, and they already have a pretty good guess about what your needs might be. You will save yourself a lot of trouble if you have entirely transparent communication.
Talk about your location preferences, the size of the property, your budget, and your short-term and long-term goals.
Searching for the property
Once your broker analyzes the situation and the discovery stage is over, he will have enough information to find the best office space for you.
Searching for a property can be a long process, so be patient. The goal is to find the perfect office space.
A broker’s job is to do extensive research, do surveys, scheduling tours, and find multiple options. After that, you will get a shortlist of possible options, with floor plans, property flyers, and everything else. The final step in this stage is visiting all the properties. Your realtor will arrange tours, and after seeing them all, you will narrow down the options to what you like the best. Your broker will contact the landlords and provide their proposals for you to review, based on your choices.
How to know what property to buy?
Even though you are getting all the information about the properties you are considering, you still have to decide which one to purchase in the end. A seasonal real estate agent who understands the market and the demand will provide detailed analysis and comparison of all properties and be there for you as a consultant. They usually know what features to look for and what makes a property suitable for your line of work.
Research the construction agreement
Choosing the right office space for your Austin-based business does not only mean looking for a nice looking property. Some offers have a better deal than others.
Another important step is to get construction estimates. Usually, the landlord hires an architect to layout a mockup of the floorplan and get the estimate for you. The pricing will tell you if the property is worth investing in or if it will be too expensive for you. This is crucial to establish before the negotiations start.
The negotiation phase
The negotiation process happens between your company, landlord, and lawyer, organized by the real estate agent. There will be a series of offers and counteroffers, all in hopes you can improve the terms of the contract. When both parties come to an agreement, your real estate agent will prepare the Letter of Intent, which outlines all terms and conditions, and it represents a sign of good faith between both parties.
Hot office trends for renting in Austin
Let’s take a few minutes to look at office space for rent in Austin. The two most popular options include:
- core office – This type of office space is considered “stable.” Companies usually rent this type of office space for many years in advance and use it to build a headquarters or established markets.
- flexible office – Flexible space is rented for a shorter time frame, and it includes daily, monthly, and in some cases, yearly rent. The usual use is for expansion, employee mobility, satellite office, etc.
Moving to your office after the completion of construction
It is a lengthy process, but you need to start moving in after the construction is over. This is a massive project, so you need someone to guide you every step of the way. The best approach is to reach out to professional commercial movers. Experience in this line of work can make a huge difference and help you avoid delays. The most crucial part is that your business does not suffer while all of this is happening.
Tips on choosing the right office space for your Austin-based business – delivered!
As you can see, finding help for choosing the right office space for your Austin-based business is vital. You cannot go alone into this endeavor and hope to finish it quickly and efficiently. You need professional assistance to avoid making mistakes and wasting your money, energy, and time. Good like finding the best property for your business!
GUEST BLOGGER’S bio
Jordan Hewitt is a freelance writer and an aspiring small business owner. He has contributed to a number of publications, and hopes that his guidance can help other struggling business owners.
Permanent link to this article: https://atxre.com/tips-on-choosing-the-right-office-space-for-your-austin-based-business/