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Office Tenants Would Be Wise to Shop Austin

AUSTIN-Vacancy is still climbing and rents are still dropping. It's definitely a time for office tenants to shop the market and work out a deal to trade up, says a Colliers International broker. Overall vacancy is 23.9%, but the CBD's class A is 27.5%.

By Tim Green | Updated on October 31, 2002

AUSTIN-Renters usually don’t have the chance to refinance like building owners or homeowners, but they can do their own version in the current Austin office market.The increasing amount of vacant space and the decreasing rents create the opportunity for tenants to bargain hard with their building owners to renegotiate their current space or find less expensive space somewhere else.

That’s one of the lessons from the Colliers International office market status report for the third quarter. The citywide vacancy rate hit 23.9 %, up from 18.8% at the beginning of the year. Average rent dropped to $23.50 per sf from $24.59 per sf nine months ago.

“It’s a great time for tenants who’ve been in lesser space to look at moving up to nicer space just because there are just great opportunities there,” says Rick Whiteley, a Colliers broker who helped compile the report. “It’s a time for people in lesser buildings to bargain really hard with their existing landlords just because they can go elsewhere for the same or less money.”

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