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.