If you are looking for cheap office space for rent your company is probably a startup, newer business, or a nonprofit that is looking to stay within a defined budget.
When searching for lower cost office space be sure to do your due diligence. If one office building costs less than another that has similar square footage there is a reason why and it’s important that you find out. Almost invariably, you will find an unappealing location, outdated infrastructure, older buildings, few amenities, or a strange tenant mix.
That said, you can sometimes find a diamond in the rough. You can find good, cheap office space for lease. It just takes an understanding of leasing office space, the right negotiation skills, market knowledge, and patience.
If you are not familiar with the city you want to lease office space in or don’t have the time, patience, or office leasing knowledge then consider hiring a tenant representative like Austin Tenant Advisors that can help you search for, select, and negotiate a great space at the best price possible.
What Makes An Office Building Less Expensive Than Another One?
Office buildings are classified as A, B, and C. Those with lower lease rates are typically older Class C office buildings more than 30 years old, in less desirable lower income neighborhoods, have minimal amenities, and are likely in need of major remodeling. Their building technology, infrastructure and mechanical systems are often outdated and the buildings themselves are often earmarked for redevelopment. Many of the buildings have deferred maintenance issues and show visible deterioration.
These class C office building locations typically have higher crime rates and are lacking in good schools and other amenities, and many people that live around may work low wage jobs or be on government subsidies.
The tenants in class C properties are typically made up of non profit groups, startups or others seeking short term commercial leases and lower lease rates.
Where Do I Find Cheap Office Space For Rent in Austin Tx?
The least expensive office space in Austin Tx is located in Northeast and Southeast Austin because the areas are primarily industrial in nature and lower income. There are a few decent buildings in these areas and over the last few years more and more of them are being renovated which is great for tenants. In these areas you will also find a lot of industrial warehouse properties for those that need to warehouse & distribute products and materials and those for manufacturing. If you need a combination of office space and warehouse space then these locations are chalked full of commercial flex spaces.
The downside of these areas is that your employees will have to get in a car and drive for lunch or to run any errands, however they are really not that far from downtown Austin. At the most you’re only 5-10 miles to downtown from Northeast or Southeast Austin so your employees will have plenty of shopping, entertainment, and restaurants to choose from.
What Are Least Expensive Office Lease Rates?
In the current market conditions the least expensive rates range from $21 to $25 sf. These rates typically include the electric and janitorial costs. So if you were leasing 3,000 sf at $21 sf your monthly rent would be $5,250 per month.
The highest I have seen rental rates for office buildings in SE and NE austin range from $25 to $30 sf. I would expect those to be in better locations and have nicer common area finishes. So if you were leasing 2,000 sf at $30 sf your monthly rent would be $5,000 per month.
Is Cheap Office Space For You?
Your bottom line is the most important thing to consider. Some companies get started with lower cost office space then move on later to a nice space, while others are fine leasing cheap office space for a long time. It just depends on your business and whether how important presentation is to your prospects, clients, vendors, and employees.
Employee recruitment and retainment is important these days since there is fierce competition for the top talent so companies do have to factor in office space that will accommodate that need.
If you don’t have many visitors and having more expensive office space is not a factor for retaining and recruiting employees then keep on saving that money!
