It's particularly true of public companies such as Vignette Corp., which has more than 200,000 sf on the market, and Charles Schwab, which has 316,000 sf, Buls tells GlobeSt.com. "They would like to be able to plug in some number that would work in the current time frame that would take some of that burden of paying rent on that vacant space out," he says.
In some cases, companies seeking to rent their sublease space are offering full-service leases at rates slightly higher than a triple-net lease, Buls says. "And I would say that a AAA-credit tenant can probably do something in the order of 20% less than those quoted rates," he adds.
Prospective tenants, however, should realize that lower rates probably won't apply to the entire space. "I don't think those rates are good for the whole amount of space, but I think they want some activity going so they can start generating some positive cash flow," Buls says.
If the reduced rates aren't advertised, they are released among brokers. "In this competitive market, with existing tenants looking for a lateral move or new tenants to come into Austin, they want to make sure they get a chance to propose a deal to that person," Buls says.
In the past two weeks, another 84,000 sf of sublease space has come to market, bringing the total to 3.33 million sf. About 62,000 sf was in the northwest submarket, which accounts for 49% of Austin's sublease space.
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