Austin office property investment
Prior to any Austin office property investment, the availability and analysis of neighboring competitive Austin office property should be determined. Also in the analysis the determination of future trends in very important. Primary consideration for Austin office property investments should be given by an investor around the demand for space by businesses in the area , along with the expansion of existing tenants in the Austin area. Also the question around the existing tenant’s desires to move from their present locations.
A good rule of thumb for the investment is the investor to study the Austin market for office property by segment according to age, condition, location , facilities and it’s amenities. Vacancy rates need to be taken into account, an overall vacancy of say 5% may actually be closer 10% for new Austin office property as opposed to older office properties. Vacancy rates vary by sub market as well and this should be taken into consideration. Typically, Austin office market information is on our website and is updated every 30 days. A prospective investor buyer can check market rates and vacancy rates within the Austin area for office properties.
A search of tenants moving from older office properties to newer office property should be examined to understand the degree of movement from one complex to another. From there an investor can make an approximation of the attractiveness of a new office property versus an older office property. Dependent on the type of business will determine what type of office property in Austin best suits them, a prestigious law firm would most likely not want to lease an older office property space that is Class C. Once the demand is determined for an Austin office property then a rent schedule can be established that makes sense to attract tenants.
Shire Commercial specializes in representing Buyers and Tenants to purchase or to lease office and warehouse properties in Austin , Texas.