Why Big Subleases Don’t Help Small Users
According to Costar, if you need 50,000 SF of contiguous space in Austin today, you have 55 existing properties to choose from. The reason new office towers WERE leasing so well is that the options for large users were very limited. Not so much now… (and this doesn’t count the 20 properties listed as under construction).
One example, new office sublease for ~60K SF spread across 3 floors of a downtown building. They designed a very cool layout for a large company, including an interior stairway that connects two floors. Very cool design… but this means that the smallest demisable spaces (keeping construction economics in mind) are 20K SF and 40K SF.
Previously, only a new project could provide the big block availability that large tenants desired to keep their teams connected. As existing buildings are vacated when these tenants grow to newly constructed buildings, you see the spaces left behind being subdivided into smaller suites. As buildings age, it is common for the spaces to be smaller, providing options for small and medium businesses.
If you are wondering why we can’t find 2,500 SF in the Domain, the young age of the project is the reason why! Come talk to us in 20 years and we will have a few options to consider.
Does anyone need space for 100-300 people? Lots of cool options!