Austin Office Space Rental Rates
Are you looking for Austin office space rental rates that suit your budget? The global pandemic has shifted how businesses operate, with more people working remotely and starting their own businesses. As a result, shared workspaces have skyrocketed in popularity.
Austin, in particular, has earned the title of one of the best cities for startups in the US. Consequently, office spaces in Austin have become a hot commodity. Venues around the city have adapted their lease agreements to accommodate the rise in remote workers and entrepreneurs. Many venues offer shared workspaces, short-term rental agreements, and dedicated desks.
If you find yourself in the modern workforce looking for flexible office space, then look no further. Stay with us as we explore how much an office space costs in Austin, and how to make the most of your monthly lease.
The Evolution of Austin Office Space Rental Rates
The pandemic blurred the line between work life and home life. As more people started working from home, the remote work situation took on a whole new meaning, and the lifestyle became significantly more accessible.
Data from Statistica reveals that 17 percent of US employees worked from home (or a remote location) before Covid-19. Now, approximately 44 percent work from home or a remote location.
In addition to remote work, approximately 9.6 million US workers lost their jobs during the Covid-19 downturn, forcing people to adapt. Many turned to entrepreneurship and started up their own company.
With Austin serving as a hotspot for remote work and a startup launchpad, options for office space have evolved significantly. Austin office space rental rates are varied, meaning that there’s something to suit everyone’s budget.
Related: How Much Office Space Do I Need Post-COVID?
Benefits of the Monthly Lease
Many different factors impact Austin office space rental rates, including the location, operating expenses, and demand. For example, it costs approximately $68.67 per sq. ft to lease office space in the Central Business District. Drawbacks for the area include heavy traffic, limited parking, and less green space.
It’s more affordable to rent in other areas of Austin. For example, it costs roughly $44.47 per sq. ft. in Northwest Austin and $56.61 per sq. ft. in the Southwest.
While these numbers are helpful to know when renting large spaces for bigger teams, they are not as useful for smaller teams or remote workers.
The evolution of the current work environment has also changed the manner of renting office space. Flexible office spaces, work-friendly coffee shops, and shared workspaces are becoming increasingly popular.
Perhaps the most notable perk of these modern working environments is the ability to rent by the month instead of a long-term lease. In turn, monthly lease agreements offer multiple benefits for remote workers, entrepreneurs, and short-term private offices.
As a starting point, consider the following benefits of a short-term lease.
Flexibility
The global pandemic has shown how quickly a situation can change and how important it is to adapt for success. Short-term rentals offer flexible office space at a predictable cost, allowing businesses to grow at their own rate without committing to a long-term lease.
As the business grows or downsizes, the office space can adjust accordingly. Businesses can save money and space by renting an office space that meets them where they are at, rather than predicting what will be needed a year in advance.
Affordability
Shared office spaces are notably cheaper than traditional offices. Membership prices can start from under $100 and offer the convenience and luxury of a permanent space – but on a low-risk, month-to-month basis.
Remote workers that travel frequently can also benefit from day passes, week passes, and community memberships. The format allows access to a structured and productive work environment without the hefty cost of a long-term lease.
Convenience
If you’ve ever owned a home, then you’ll be familiar with the effort needed to maintain the building. The same effort is required to manage an office on a long-term basis. Flexible, short-term office rentals in Austin offer the convenience of the space, amenities, perks, and on-site services without any long-term commitment needed.
Essentially, coworking spaces demand less commitment, fewer responsibilities, and a lower cost. Additional perks include networking opportunities and even support for startups.
Why Do Rental Rates Vary?
Even short-term rentals vary in price. Several factors impact the cost of renting space – whether it be a traditional office space or a productive shared workspace.
Location
Perhaps the most obvious factor that impacts price is location. A property located near essential services, in the business district, or in a trendy area will cost more than a space in a more remote area. For example, Frost Bank Tower is one of the most recognizable and expensive office spaces in downtown Austin, boasting impressive amenities in addition to a convenient location.
While other office spaces in downtown Austin are also pricey, as tenants prioritize location, there are spaces in other areas which are more affordable. For example, Bouldin Creek and the North Loop are trendy, convenient, and cost-effective.
Building Class
One of the reasons that Frost Bank Tower is so expensive to rent is because of the class of the building. For context, office buildings are typically classified into one of three categories.
- Class A buildings are new, good-looking buildings made of quality construction materials, located in good areas with easy access, and are professionally managed.
- Class B buildings are slightly older but still well managed. Often they are a renovation away from being Class A.
- Class C buildings are older and located in less desirable areas. The infrastructure and technology are outdated, and the building could benefit greatly from a renovation.
Class A buildings usually ask for a higher rental rate, yet Class B buildings typically offer similar benefits and amenities.
Operating Expenses
Did you know that most office rental rates in Austin are calculated on a Triple Net rent (NNN) basis? Essentially, this means that the operating costs have a notable impact on the overall cost of the space.
These operating expenses range from property taxes and utilities to common area maintenance and property insurance. The cost to keep the building operational depends on location and infrastructure, which directly impacts the rental rate.
Amenities
On to the fun side of shared workspaces! Some office spaces demand a slightly higher fee in exchange for office perks and amenities. Considering that the average American works 34.4 hours per week, the office must be productive, comfortable, and motivational.
Workspaces that offer additional amenities introduce a better work-life balance and improved wellbeing.
Some amenities that could impact the price of rental include;
- Outdoor areas
- Food courts
- Fitness centers
- Conference rooms
- Private phone booths
- Printers and scanners
- Community and events
- 24/7 access
While some of these amenities may increase the rental price, their long-term value pays off. In addition, many shared workspaces have different membership options that scale the amenities and perks. Browse these options and choose a space that fits your budget and work culture.
Related: Why Temporary Office Space In Austin Is Just What You Need
Make the Most of Your Austin Office Space Rental Rates
Not all office spaces in Austin are created equal, and everyone has a different working style. While some prefer the quiet, early morning hours, others work better once the sun goes down. Once you’ve chosen an office space that resonates with your professional preference, you’ll want to make the most of it.
Here are a few tips on how to get the most out of your Austin office space:
- Take note of hidden costs, such as parking and furniture, and plan accordingly
- Browse various membership options and determine which suits your work routine and budget
- Choose a space that compliments your commute
- Consider the office accessibility and how it aligns with your most productive working hours
- If claiming the rent from your company, make sure that you confirm the price and location with your team beforehand
- Clarify the small print on the lease, such as who is responsible for repairs and any extra expenses
- Take advantage of the added amenities, such as social events and the mailbox
Working from home offers convenience and comfort, but it can also blur the boundaries between work and play. Choosing an easily accessible and affordable office rental helps boost productivity – and the company’s bottom line.
Make Your Move Today
If you’re inspired to find an office space to rent in Austin and unsure where to start, then Vuka workspace has you covered. Vuka offers shared workspace, private offices, and dedicated desks at two locations in Central Austin.
Vuka’s community of entrepreneurs and organizations benefit from a productive working environment with many amenities to enjoy. From on-site parking, conference rooms, and a kitchen with bottomless coffee to printers, phone booths, networking events, and more, Vuka is leading the way in office space rentals.
Furry friends are always welcome in the space, and human guest passes are available with certain membership options. Even better, members have access to more than one hundred Impact Hubs around the world!
Are you ready to secure your spot at Vuka’s shared workspaces? Get started today and join a creative community that prioritizes collaboration in a space designed to inspire and increase workflow.
