While known for a bohemian spirit, it’s Austin’s innovation and drive that’s spurring one of the nation’s fastest-growing local economies. Downtown Austin is the epicenter of this movement and is propelling the entire region with many of the cutting-edge companies that help define the digital age. Downtown Austin’s growth is in its infancy which makes it even more promising for organizations wanting a role in its success.
As leaders in the local commercial real estate market, TenantBase wants to help your organization find office space in Downtown Austin that provides you with a competitive edge. Use this guide on commercial space in the Downtown area to inform your search and help you find space that meets your company's specific needs and goals. With TenantBase as your partner, office space in Downtown Austin can be a springboard to your organization’s success.
Office Space in Downtown Austin
Downtown Austin has become a significant tech hub in recent years as companies like Facebook, Indeed, Google, and several others now have a considerable presence in the neighborhood. Large medical corporations also occupy much of the northern side of Downtown while Parsley Energy is set to lease a 300,000 SF, 31-story building in 2020.
The office space in the area reflects the nature and stature of Downtown’s tenants. The over 9 million SF of Class A space represents over half of Downtown Austin’s total commercial space. The area also features roughly 5 million sq ft of Class B and over 2 million SF of Class C space. A growing coworking space movement is also gaining steam in Downtown to meet the evolving demands of modern business.
Rents vary widely in the Downtown neighborhood, averaging $45-$55 SF for Class A, $40-$45 for Class B, and $35-40 for Class C. Pre-leasing prices in new construction Class A properties are roughly $60-$70 SF. Vacancy rates hovering around 5% have placed an upward force on price points while also limiting choices for full-floor users. Several large-scale towers are either under construction or in the planning stages to provide the area with additional commercial space inventory in the near future.
Although many of these new buildings will have dedicated parking floors, parking in general is tight and expensive in the area at roughly $225/month. Older buildings typically contract with neighboring parking garages but metered parking is also available throughout the Downtown region.
Working in Downtown Austin
Commuting into Downtown Austin can be challenging if workers don’t utilize the many commuting options available to them. While sheer distance can make the drive from the suburbs long and trying, public transportation is starting to become a convenient and viable solution for many who live around the CBD. Several express buses run from outlying hubs into Downtown and the MetroRail line ends on the east side of the area. Rental bikes and scooters are a growing trend for Downtown workers as they significantly extend the distance they can travel without the need for a car.
A healthy work-life balance is another powerful tool in drawing talent into the neighborhood. Downtown Austin doesn’t shut down at the end of the workday like most central business districts but pulses with energy well into the night. Numerous restaurants and bars make the Downtown nightlife attractive and convenient for the area’s workforce. This notion is particularly true when coupled with the many Class A residential buildings now so prevalent throughout Downtown Austin. Lady Bird Lake and several nearby parks also provide easy access to green space that only further enhances an appealing live-work-play balance.
Downtown Austin is a special place with an innovative spirit that offers unique benefits to companies that make it their home. You can rely on TenantBase for local expertise and the experience needed to help your organization find office space in Downtown Austin that meets your particular needs and attracts the talent necessary for growth and success.