(Community Matters) Diana Holford of Jones Lang LaSalle hosted a breakfast for EF member company CEOs/CFOs this morning, explaining to us what opportunities today’s commercial rental market presents.
Not intending to recount her professional advice since I’m likely to forget to mention the nuances; nevertheless, some macro points she made which readers might find of interest:
- Austin is one of the few cities in the country that has not incurred negative job growth.
- Downtown space still scarce. Even the two new buildings drivers off MoPac notice on 5th are leased.
- A significant new lease at the Frost Bank Tower signed for $30psf plus $16psf in expenses plus parking and annual escalations
- Downtown class A space renting at triple net for $24 to $31 psf with annual escalations. Class B: $14 to $22psf
- Suburban class A space renting at triple nets of $14 to $22 psf, though there are some very sweet opportunities, more negotiating and more gross rental deals available in the suburbs – especially from sublease. Suburb class B: $9 – $15psh triple net
- For finish out, she estimates an experience construction manager will save you $2.00 for every $0.50 you spend on their service
Community Matters 