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This blog was created to provide information about the Austin Commercial Real Estate scene. If you want to learn information and tips about leasing and purchasing office, retail, and industrial space in Austin you have come to the right place
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When leasing commercial real estate it’s important to understand what is being included in the rental rate and what all you are paying for. Most commercial leases are going to be triple net leases where you pay your pro rata share of operating expenses as well as the base rental rate.
In many cases such as when renting commercial real estate in Austin Tx the operating expenses are going to be about half of what your base rental rate is. For example in Northwest Austin class A office space base rates are $30 sf and the operating expenses are estimated at $16 sf. In downtown Austin operating expenses are over $20 sf. As you can see operating expenses are a significant portion of your total rent amount.
Below you will learn what operating expenses are, what’s included, and what can be negotiated.
The definition of commercial property operating expenses (OPEX) is the costs associated with maintaining and operating a commercial property such as office space, retail space, and warehouse space. Depending on the building lease structure the operating expenses maybe a component of the gross rent or be in addition to the base rent. Most commercial office leases in Austin are going to be triple net (NNN) leases in which the OPEX are paid by the tenant in addition to the base rent. With multi-tenant buildings each tenant is responsible for their share of opex which depends on the rentable square footage of their space compared to the total rentable square footage of the building.
The short answer is they do not typically include capital expenses, debt service, commercial property marketing costs, leasing commissions, tenant improvement allowances, or capital reserves for future repairs.
If you are a larger tenant then landlords may be negotiable on their controllable items such as CAM charges since they can control how the building is managed. For example getting the landlord to agree to capping the annual opex increases. Landlord’s have no control over property tax increases, therefore will not agree to cap those.
I pulled the info below from one of the commercial leases I was reviewing. Most have this sort of language in the lease that defines what operating expenses are AND what they are not.
In no event shall Operating Expenses include any of the following (collectively, “Exclusions”):
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Garza Ranch is a new 34 acre commercial development in Southwest Austin that will include 400,000 sf of office space, a 140 room, five story Aloft boutique hotel, a 370 unit apartment complex and a 2.2 acre park. The new project is located off of South Mopac Expressway in Southwest Austin, really close to William Cannon. Software House International (SHI) has already announced plans to build and move into 1 of the 2 buildings to be built. The remaining 150,000 sf has not been spoken for at this point.
Brandywine Realty already has contractors doing the infrastructure work to build roads and utilities to the property that is expected to be completed by the end of 2018. The office buildings are expected to be complete by the 1st quarter of 2020.
For more information about office space for rent in Southwest Austin at Garza Ranch give us a call at 512-861-0525
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When looking at the different types of commercial real estate property investors and tenants have different objectives. Investors look at commercial real estate (aka commercial property) as a way to make money by generating profits from land or buildings. The primary ways investors make money with commercial real estate properties are through one or more of the following: appreciation, cash flow, and principal build up by having tenant rents pay down the loan. Many investors are looking hard at investing in Austin Tx commercial real estate.
Tenants on the other hand are looking to rent commercial property in prime locations for their businesses. Since there are many different types of commercial property tenants have to thoroughly evaluate their needs to determine which type is best suited for their company. To help below I have listed the different types of commercial real estate.
Office buildings consist of multistory buildings in the suburbs or downtown high rises and skyscrapers with common area lobbies, hallways, and bathrooms. These larger buildings can be up to 300,000 to 500,000 rentable square feet. They also can be single tenant properties, smaller professional office buildings and condos. Short term serviced executive suites and coworking spaces would also fall into this category.
Traditional office space are typically classified as A, B, or C. Class A office buildings will be the newest, nicest and most expensive buildings in the best locations, and with the best amenities. Class B offices are nice but typically a little bit older and without all the amenities. Class C buildings are the oldest, less maintained, and least expensive office buildings, and in less desirable locations.
Industrial spaces have multiple categories as they are designed to service different types of users. They will range from small Flexible or R&D properties to larger warehouse and distribution centers. Companies that rent industrial space may need a little bit of office space however a large portion of it will be warehouse space used for bulk storage, retail warehousing, manufacturing, distribution, light assembly, etc. They typically equipped with loading docks that can be grade level allowing vehicles to drive in or dock high allowing 18 wheelers or box trucks back in to deliver product.
If you are looking for visibility for your company than retail space will typically have the best locations for your store or shop. Retail shopping centers, pad sites located on highway frontages, small neighborhood shopping centers, single tenant retail buildings, large big box shopping centers (aka power centers) with stores such as Petsmart & Best Buy, grocery store anchored centers, and regional outlet malls.
Multifamily includes anything larger than a fourplex such as apartment complexes or downtown high-rise apartment buildings and condos. You will also see mid-rise, manufactured housing communities (e.g. mobile home parks), and special purpose housing.
Any raw, undeveloped or rural land in the path of future development. You will also see pad sites for sale on many highway frontage roads.
Any other nonresidential property including hospitality, hotels, self storage units, & medical space such as nursing homes and hospitals
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Office Space for lease comes in all different types, sizes, building classes, and shapes. Many companies right now are favoring open office space layouts, however those are not for everyone. Maybe you like eclectic old houses zoned for commercial use or prefer an office in a downtown high rise. Whatever your needs there are many to choose from. When searching for office space for rent in Austin Tx you will come across many different types of office space. Below are a few to consider to see which ones are the best fit for your company.
Traditional office buildings are typically multistory office towers in the suburbs or downtown that have common area lobbies, bathrooms, and hallways. In most situations landlords handle all of the repairs, maintenance, and cleaning. Parking is on a square footage basis (2-5 per 1000 sf depending on the building). So if you lease 5,000 sf you may get 10-25 parking spaces. In downtown areas parking will be an additional charge.
For most law firms, financial services companies, accounting & investment firms, etc the traditional office layout works the best. Traditional office space allows your employees to have their own private rooms to work and meet with clients since confidentiality is key. Common features of traditional professional office spaces are
Most traditional office space leases require that you sign a multi year lease that is typically 3-5 years or longer.
Creative office space is also thought of as office space with an open layout. They all share a similar decor, layout, style, etc however creative offices share a few common traits such as
Creative offices encourage functional collaboration. With fewer walls between departments there is typically more transparency, collaboration, and communication between leadership, managers, and employees.
Office spaces that are creative also tend to be more efficient allowing you to fit more employees per square foot. You can get more people in a space when you have fewer rooms and more rows of tables or cubicles.
Startups, tech companies, creative agencies are typically drawn to creative open office space, however large companies and even law firms and financial companies are exploring this type of space to encourage communication and collaboration within and across departments and teams.
These are basically traditional offices spaces found in high density downtown areas. You will see downtown skylines painted with large class A office buildings typically 20 to 30 stories with 300,000 to 5,000 sf of rentable office space. Most of them come equipped with all of the class A amenities as described in the office building classification below.
These are basically shared office situations. You have the flexibility of doing shorter term leases and they come furnished. Shared meeting rooms, break areas, and desks are common. These are best for small companies or tech startups who need short term work space. You can either rent a desk, a room, or a suite of rooms. Along with the flexible commercial lease terms you get to enjoy socialized events and interaction with other tenants and companies.
These are typically plug n play work spaces complete with furniture, phones, internet, and reception services. Regus for example will lease a full floor of a building and lease them out in smaller parcels to other companies for short flexible terms typically month to month or 3, 6, 9, 12 month increments.
These are basically houses that were once residential now zoned for office space use. You typically find these in or around downtown neighborhoods. These are great for those wanting their own entrance and cool eclectic space. Lot’s of creative users and tech companies like these for their proximity to downtown.
For those that needs a little bit of office and a little bit of warehouse space these are perfect. It allows you to have some office space with your own entrance and an overhead door in the back for shipping and receiving. Flexible offices spaces are typically single story buildings found in semi industrial areas. You will have your own entrance and bathroom that you must maintain. You are also typically responsible for the cost of maintaining the HVAC unit.
Most office buildings are in one of the following 4 categories: Class A, Class B, or Class C, however this is not an exact science. There is not an industry wide standard on what determines a building classification. It depends on the landlord or agent, building owner, market, and other buildings in the neighborhood. Office building classes are somewhat subjective and it depends on a number of factors such as
These building classifications are not permanent as they can change depending on market trends, renovations, etc.
Class A office buildings will be the nicest and highest quality commercial office properties in the market. You will see a mix of downtown high rises, historical buildings, and suburban office spaces that have the best locations, most recent technology and infrastructure, lots of tenant amenities such as building conference room, fitness center, showers, onsite deli, etc. Class A office space will have the highest rental rates. These buildings will attract image conscious companies such as attorneys and financial investment firms.
Class A office buildings are a little bit older but still have nice amenities and good ownership. You will find a mix of smaller tenants looking for nice space but at a lower price. You can find class B commercial properties in prime areas but at lower prices than class A. They typically don’t offer as many amenities and services
Most Class C office buildings are older with little to no tenant services. The finishes are lower quality both internal and external and they lack modern functionality and technological advances. They will also not be in the best locations. Rental rates in class C commercial buildings will be the lowest.
Not sure what type of office space your company needs? No worries – it varies by your company situation, size, ideal location, budget, and plans over the next 3-5 years, however we can help you find exactly what you are looking for.
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When you lease commercial real estate in most cases you will need to do some sort of leasehold improvements. If it’s a brand new space in shell condition then obviously it will require a lot more planning and work. If it’s 2nd generation space that has been leased before it may not require as much work (only carpet and paint in many cases) unless you need to remove or add a bunch of walls.
Regardless of what tenant improvements are needed the end result can determine your satisfaction. Below is the definition of leasehold improvements, a few common problems that you may encounter, and suggestions on how to avoid them
The definition of leasehold improvements -Improvements done to commercial spaces that tenants rent out such as office, retail, or warehouse space. Examples are building or demoing walls and ceilings, new flooring, plumbing and electrical, cabinetry, building offices and conference rooms, etc.
Leasehold improvements generally convey with the landlord upon the termination of a commercial real estate lease and the tenant moves out. The cost of the improvements is typically negotiated between the tenant and landlord. Depending on the landlord, your credit, market you are in, scope of work, total deal terms such as lease term length, lease rate, rent concessions such as free rent, etc you can generally negotiate to get them to pay for a portion or all of the improvements. The longer lease you sign the more money you can generally negotiate for commercial leasehold improvements.
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One of the common misconceptions is that by choosing to work with a national commercial real estate company you are also choosing a bigger better company vs a smaller one. National companies often do have large offices however they don’t necessarily have a large office or strong presence in every city. Also the overall size of a company is not an indication of how better or strong they are in a specific market. For example just because you like your Austin commercial real estate broker does not mean you will like your Chicago commercial agent. Commercial real estate is a highly individual and local industry and a national firm could have a strong presence in one market however be a small player in another.
Also, just because a commercial real estate company is large does not mean you’ll end up working with an experienced agent. In many cases if you are a small tenant or buyer you may get handed off to a less experienced or new commercial agent.
At the end of the day when choosing a commercial real estate company you want to ensure that the person assigned to you has experience. And working with a local company has it’s benefits.
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Are you searching for commercial office space on Congress Avenue in Austin Tx for lease, rent, or sale? If so let us help you. Just call us or email us and we can get started right away.
We specialize in helping buyers and tenants search, select, and negotiate office properties in Austin, Tx. Because our fee is paid for by landlords and building owners our services are free to you, however our fiduciary duty is to represent your best interests. Unlike other commercial real estate agents we have no conflict of interest since we do not represent landlords or owners. We only represent your best interests and are able to provide unbiased opinions on every property and give you insider information that they are not allowed to since they represent the owners.
There are over 18 Austin office buildings on Congress Ave with over 100 spaces. You could spend a lot of time searching on your own or let us help. We will save you a ton of time, help you avoid costly mistakes, and negotiate the best deal possible.
Whether you need to lease or purchase Office space on Austin’s Congress Avenue we got you covered. Office buildings on Congress Ave come in various sizes, prices, and building classifications. Some are old converted houses and others are modern office towers Downtown such as the Frost Bank Tower. The determination of Classes can be subjective depending on the marketplace or the landlord/broker listing a particular property, however the basic rules of thumb are as follows:
These are multistory buildings/towers with many different tenants in different industries and sizes. Lobbies, bathrooms, and hallways are common to all tenants in the building. In most cases landlords take care of all the maintenance, cleaning, & repairs. The buildings are classified based on age, amenities, and quality of finishes (Class A, B, C). Class A office space is the newest, nicest, and most expensive. Class B are older than class A but well maintained and lower rates. Class C are the oldest, less maintained, and least expensive.
If you need temporary space or short term leases these are the way to go. Typically plug n play complete with furniture, phones, and internet service.
Many old houses are zoned for commercial office use. For those that like quirky space with your own entrance and parking, and don’t mind being responsible for paying your own electric and janitorial then these might be a fit. You would also may be responsible for the maintenance, repairs, and landscaping for the property
Give us a call (512) 861-0525 or fill out our website form and we will get started right away!
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CityView office space is a 4 story class A office building on South Congress located at 1007 S Congress Ave, Austin Tx 78704. If you are looking to be near downtown Austin on one of Austin’s most Iconic streets then you will want to check out this office building. Walking distance to numerous restaurants, retail, and entertainment your employees will love coming to work. Here they have a 12,500 sf space located on the 4th floor.
If you are interested in renting class A office space in downtown Austin give us a call at 512-861-0525. We will help you find the best options that meet your needs
Building Size – 50,000 sf
Building Height – 4 floors
Floor Plate – 12,500 sf
Parking – 2.75 per 1,000 sf
Amenities – Walking distance to everything around downtown Austin
Class A Office Space
For information about this office building South of Downtown Austin or other Class A office spaces near downtown give us a call. We can help you find office space in Austin that meets your company’s current and future size, layout, and budget.
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Deciding on how long your commercial real estate lease term length should be is a delicate balancing act. On one hand you want to get as many concessions from the landlord as possible and maximize your ability to control the space for as long as you need it. On the other hand, you need the ability and flexibility to move out if the space does not meet your needs anymore. Choosing the the commercial lease term that makes the most sense for your company takes careful thought about your current and future business needs.
Your landlord wants to receive highest possible rent for as long as possible. In a perfect world if they could get you to sign a 10 year lease or longer they would. Average commercial lease lengths are 3-5 years, however it’s contingent on market conditions, the existing condition of the space, your credit, and the scope of tenant improvements needed. In a hot market landlords are going to push for a minimum of 3-5 year leases. If a lot of tenant improvements are needed and you are expecting the landlord to pay for most or all of it then expect to sign a 3-5 year lease or longer. The reason why is that they need more time to recoup their initial investment. There is no way for them to do that if you only sign a 12 month lease. It’s important that you or your commercial real estate agent understand the landlords needs to ensure that the building and space will accommodate your needs.
When determining how long of a commercial lease term to sign there are several factors to consider:
If you are a new business or startup you may seek a short term commercial lease agreement (e.g. less than 3 years). That way if things don’t work out you are not stuck with a lot of lease term to pay for. Keep in mind that a shorter lease term typically means you will have less leverage to negotiate concessions such as tenant improvements or rent discounts. Depending on the space and building you are interested your only option maybe a 3-5 year lease or longer. If the space needs a lot of build out and you are asking the landlord to pay for most of that then expect to have to sign a longer term lease. If the market is hot and there is a lot of interest in the space you want then expect to have to sign a longer lease.
Ideally you want to try to negotiate a commercial lease term that is less than the amount of time that you need it, however with options to renew and/or expand that will carry you beyond the time that you need it. For example a 5 year lease with a 3-5 year option to renew. If you are in doubt of the longevity of your business then stick to shorter business lease terms. If your business is stable with consistent sales then there is no reason to unnecessarily sign short term office leases because you will end up paying a premium to do so.
With the right help from a tenant representative you will be able to evaluate your current needs and determine the right commercial lease term for your company.
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When leasing commercial real estate for a rapidly growing company it’s important that you negotiate to have options to expand, otherwise if you run out of space in that building your only option is to relocate your company to a different building. One of those options is called a Right of First Offer (ROFO).
If you have negotiated a ROFO then anytime a space becomes available the landlord has to “offer” it to you first. This gives you the ability to take the space or reject it before the landlord offers the space to anyone else. A ROFO could include only adjacent space, any space on your existing floor, or any space in the building.
Let’s say you negotiated a commercial lease and the landlord conceded and gave you a ROFO. Then 6 months later a tenant who occupied space on the 5th floor moves out of the building. If you have a ROFO on that space or the 5th floor then the landlord has to offer you the space before offering it to anyone else. ROFO’s can be negotiated for a particular floor or space. The key is to understand your current and future space needs and do your best to negotiate rights to space so you have other expansion options other than having to relocate your business elsewhere.
Landlord shall, prior to offering any of the space on the 2nd floor of the Building containing 31,211 rentable square feet and described as the “Offer Space” on Exhibit A (the “Offer Space”) to any party (including the then-current tenant or occupant therein), first offer to lease to Tenant the Offer Space in an “AS IS” condition; such offer shall (a) be in writing, (b) subject to the immediately following sentence, specify the part of the Offer Space being offered to Tenant hereunder (the “Designated Offer Space”), and (c) specify the lease terms for the Designated Offer Space, including the rent to be paid for the Designated Offer Space and the date on which the Designated Offer Space shall be included in the Premises (the “Offer Notice”). Landlord shall only be required to offer, and Tenant may only request to lease, one of the following three options: (a) the entire 2nd floor (31,211 rentable square feet); (b) 24,233 rentable square feet, depicted in Exhibit A as the “DHI Mortgage” space, or (c) 6,978 rentable square feet, depicted in Exhibit A as “Vacant”. However, if Landlord leases any portion of the 2nd floor, the options contained in the previous sentence shall be revised to be the unleased portion of the relevant space, e.g., if Landlord leases 10,000 of the 24,233 rentable square feet in clause (b), then clause (b) shall be deemed to include only the 14,233 rentable square feet remaining in that section of space. The Offer Notice shall be substantially similar to the Offer Notice attached to this Exhibit. Tenant shall notify Landlord in writing whether Tenant elects to lease the entire Designated Offer Space on the terms set forth in the Offer Notice, within five days after Landlord delivers to Tenant the Offer Notice. If Tenant timely elects to lease the Designated Offer Space, then Landlord and Tenant shall execute an amendment to this Lease, effective as of the date the Designated Offer Space is to be included in the Premises, on the terms set forth in the Offer Notice and, to the extent not inconsistent with the Offer Notice terms, the terms of this Lease; however, Tenant shall accept the Designated Offer Space in an “AS IS” condition and Landlord shall not provide to Tenant any allowances (e.g., moving allowance, construction allowance, and the like) or other tenant inducements except as specifically provided in the Offer Notice.
If Tenant fails or is unable to timely exercise its right hereunder with respect to the Designated Offer Space, then such right shall lapse, time being of the essence with respect to the exercise thereof, and Landlord may lease all or a portion of the Designated Offer Space to third parties on such terms as Landlord may elect. Landlord shall not be obligated to re-offer the Designated Offer Space to Tenant unless Tenant does not accept the Offer Notice and Landlord fails to enter into a Lease Agreement with respect to the Designated Offer Space within 180 days after the date of the Offer Notice. Tenant’s rights under this Exhibit shall expire as to any portion of the Offer Space that becomes subject to a new lease following the Lease Date. Unless otherwise agreed in writing by Landlord and Tenant’s real estate broker, in no event shall Landlord be obligated to pay a commission with respect to any space leased by Tenant under this Exhibit, and Tenant and Landlord shall each indemnify the other against all expenses, costs, attorneys’ fees, and other liability for commissions or other compensation claimed by any broker or agent claiming the same by, through, or under the indemnifying party.
Tenant’s rights are personal to TENANT and shall terminate, at Landlord’s option, if (i) this Lease is terminated, (ii) Tenant assigns its interest in this Lease or sublets more than 20% of the Premises, (iii) Tenant ceases to lease the entire Premises demised as of the Lease Date from Landlord and to occupy at least 80% of the Premises, or (iv) less than 15 full calendar month remains in the Term of this Lease (unless, concurrently with exercising its right, Tenant also irrevocably exercises its renewal right, in which event Tenant’s rights under this Exhibit shall terminate at the expiration of the initial Term).
In addition, it shall be a condition to the effectiveness of the exercise by Tenant of its rights hereunder that, at the time of exercise of the right of first offer or as of the effective date of the addition of the Designated Offer Space to the Premises, (x) there is no existing Event of Default by Tenant, and (y) Tenant satisfies the Net Worth/Credit Threshold, unless Tenant provides to Landlord additional security (either in the form of a security deposit or a letter of credit) in an amount reasonably acceptable to Landlord.
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If your company expects to grow rapidly by hiring additional employees sooner than later you want to try negotiate a right of first refusal (ROFR) on any additional space in the building. This could be any contiguous space, non-contiguous space, both or a combination of.
Whether you are leasing office, retail, or warehouse space if you expect rapid growth then you must do your best to secure the option rights to additional space. Otherwise your only option will be to relocate your company. For example, in a hot area like the Austin commercial real estate rental market space is tight so it’s important to create more options for your company.
A right of first refusal is a negotiated right of a tenant in a commercial lease to match any offer received by a landlord to lease a demised or other premises. Basically on any space that you have a ROFR on the landlord has to give you first dibs on any pre-negotiated deal with another party. You are not obligated to take the space. It’s your option.
Ideally you want to get a right of first refusal on any adjacent or contiguous space however that depends on what the neighboring tenants negotiated in their lease. If the contiguous space is not possible then you want to get a ROFR on any non-contiguous space which is space not adjacent to yours. It could be on the same floor or different floors. If another tenant already has a ROFR then you could get a ROFR that is secondary to theirs.
Let’s say you are negotiating on 5,000 sf of Austin office space for rent in a particular building and you don’t quite know your future office space needs. To increase your chances of having more space in the building to grow into you ask for a right of first refusal.
The landlord is still able to market any available space they have in the building. However if the landlord gets an offer from another potential tenant that they are willing to accept the landlord has to present the offer to your first, giving you the opportunity to accept or decline the space.
If you accept the deal then you have to take the same rates and terms that were negotiated by the other party. If you negotiated an ongoing ROFR then you will be able to exercise a right of first refusal again in the future after that party’s lease expires.
If Landlord receives a bona fide offer from a third party (including the then-current tenant or occupant therein) (a “Third Party Offer”) to lease any of the 14,209 rentable square feet of space on the 1st floor of the Building, or any of the 6,978 rentable square feet of space on the 2nd floor of the Building, in each case designated on Exhibit A hereto (the 1st floor space and 2nd floor space being, collectively, the “Refusal Space”), and Landlord is willing to accept the terms of such Third Party Offer, Landlord shall offer to lease to Tenant the Refusal Space on the same terms and conditions as the Third Party Offer; such offer shall (a) be in writing, (b) specify the part of the Refusal Space being offered to Tenant hereunder (the “Designated Refusal Space”), (c) specify the rent to be paid for the Designated Refusal Space, and (d) contain the basic terms and conditions of the Third Party Offer and the date on which the Designated Refusal Space shall be included in the Premises (the “Refusal Notice”). Landlord and Tenant hereby agree that: (i) if the Third Party Offer is for less than all of the Refusal Space located on the 1st floor, Tenant must exercise its right hereunder as to all of the Refusal Space on the 1st floor (not just that portion subject to the Third Party Offer) and otherwise on the terms and conditions of the Third Party Offer, (ii) Landlord may not accept any Third Party Offer for any portion of the Refusal Space located on the 1st floor prior to March 1, 2012, and (iii) Landlord will not require Tenant to respond to a Refusal Notice for any Refusal Space on the 1st floor prior to March 1, 2012. Nothing in the previous sentence shall pertain to the Refusal Space located on the 2nd floor of the Building.
The Refusal Notice shall be substantially similar to the Refusal Notice attached to this Exhibit. Tenant shall notify Landlord in writing whether Tenant elects to lease the Designated Refusal Space subject to the Third Party Offer on the same terms and conditions as the Third Party Offer in the Refusal Notice, within five days after Landlord delivers to Tenant the Refusal Notice. If Tenant timely elects to lease the Designated Refusal Space within such five-day period, Landlord and Tenant shall execute an amendment to this Lease, effective as of the date the Designated Refusal Space is to be included in the Premises, on the same terms as this Lease except (1) the Basic Rent and parking charges shall be the amounts specified in the Refusal Notice, (2) the term for the Designated Refusal Space shall be that specified in the Refusal Notice, (3) Tenant shall lease the Designated Refusal Space in an “AS IS” condition, (4) Landlord shall not be required to perform any work therein, (5) Landlord shall not provide to Tenant any allowances other than those contained in the Third Party Offer (e.g., moving allowance, construction allowance, and the like) if any, and (6) other terms set forth in the Lease which are inconsistent with the terms of the Refusal Notice shall be modified accordingly.
If Tenant is unable to exercise its right hereunder with respect to the Designated Refusal Space, such right shall lapse, with respect to the exercise thereof (it being understood Tenant’s right hereunder is a one-time right only as to each Designated Refusal Space the first time it is offered to Tenant hereunder), and Landlord may lease all or a portion of the Designated Refusal Space to third parties on such terms as Landlord may elect. Landlord shall not be obligated to re-offer the Designated Refusal Space to Tenant unless Tenant does not accept the Refusal Notice and Landlord fails to enter into a Lease Agreement with respect to the Designated Refusal Space within 180 days after the date of the Refusal Notice. Unless otherwise agreed in writing by Landlord and Tenant’s real estate broker, in no event shall Landlord be obligated to pay a commission with respect to any space leased by Tenant under this Exhibit, and Tenant and Landlord shall each indemnify the other against all costs, expenses, attorneys’ fees, and other liability for commissions or other compensation claimed by any broker or agent claiming the same by, through, or under the indemnifying party.
Tenant’s rights under this Exhibit are personal to Tenant and shall terminate, at Landlord’s option, (i) if this Lease or Tenant’s right to possession of any of the Premises is terminated, (ii) if Tenant assigns its interest in this Lease or sublets more than 20% of the Premises, (iii) if Tenant ceases to lease the entire Premises demised as of the Lease Date from Landlord and to occupy at least 80% of the Premises, or (iv) on June 30, 2012.
In addition, it shall be a condition to the effectiveness of the exercise by Tenant of its rights hereunder that, at the time of exercise of the right of first refusal or as of the effective date of the addition of the Designated Refusal Space to the Premises, (x) there is no existing Event of Default by Tenant, and (y) Tenant satisfies the Net Worth/Credit Threshold, unless Tenant provides to Landlord additional security (either in the form of a security deposit or a letter of credit) in an amount reasonably acceptable to Landlord.
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At a company grows proper office space planning becomes more important to ensure that employees are happy and productive and that the company is successful. You’re going to need more offices, open space, and collaborative space. You want to ensure that employees that work together frequently are in close proximity. Also, the ideal office space plan is one that will allow you to add seats when you need them however keep you from leasing or paying for more space than you need. In Austin Tx office space rental planning is a critical component when evaluating options.
The trend seems to be open office space concepts however just because it works for others does not mean it will work for you. You want to make sure you research what is working for others and what is not. You want a functional space that meets the overall needs of the company and culture. Some office planning experts suggest asking yourself a few key questions:
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Music Lane Office Space consists of 2 class A office buildings located in South Congress at 1009 & 1100 S Congress, Austin, Tx 78704. If you are looking to rent office space close to downtown Austin within walking distance to numerous retail shops and restaurants and want to be a part of Austin’s South Congress experience then you definitely want to check out this new project.
If you are interested in leasing class A office space in Austin Tx and would like help finding the options that best suit your needs then contact us at 512-861-0525.
Building 1
Building 3
Parking Ratio – 2.5 per 1,000 sf. Structured parking garage under building 1
Class Office – A
Amenities on Site – Onsite fitness & dining options and parking
Asking Base Rental – Call for rates
Estimated Operating Expenses (NNN) – Call for rates
For information about Music Lane office space or other class A office spaces near downtown Austin Tx give us a call. We can help you search for and find the best options that meet your current and future needs.
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