Austin Warehouse space for lease or sale, April 2012 update

Warehouse space in the Austin area is still trending higher moving into April, with vacancies maintaining a flat to downward trend. We are seeing a lot of tenants looking for warehouse properties are seeking smaller square footage that are below 5000 SF. Warehouse space that doubles as an office space can give you a lower cost to entry than office which makes it attractive for potential office space users. Flex warehouse properties tend to be at the higher end of the leasing rates, so expect a bit of an increase in Austin warehouse space rates . Trends for warehouse space for sale are not seeing a lot of asking prices moving upwards or downwards with an averages sales price of $80/ SF.

Concessions are still readily available and we strive to help our clients find the best deals on warehouse properties for lease or sale in Austin. Below are some fundamentals to think about as you get ready to lease or purchase a warehouse property. Large space retail locations are available such as former Albertson’s or a Lacks furniture store may have leasing rates that are close to those of higher end warehouse space in the Austin area.

• Determine what are your must haves , things you can not give up in a negotiation such as power requirements, door access, 18 wheeler access , 100% HVAC etc.
• Determine what you are willing to be flexible on and what you can give up that is of low interest to you, location, type of access etc.

Rather than spending time and effort finding and negotiating on warehouse property without market tools, you can utilize Shire Commercial’s expertise , clients are not charged any fees. Why not utilize our services and leverage the opportunity for us to serve you by allowing us to negotiate different facets of a warehouse property to your advantage?

Austin warehouse space rates can be quoted as triple net, gross or modified gross. Triple net warehouse leases pass through insurance, taxes and common area maint costs to the tenant. Gross warehouse leases usually have the operating expenses wrapped into the monthly rent and the tenant pays electric and janitorial, whereas modified gross means that usually a portion of the operating expenses may be passed through to you as the tenant, but the lease rate per month includes expenses and is quoted as a total per month , as an example $0.75 cents per month

Austin Warehouse Space for Sale Financing Information – Q4 2011 – National averages

Average Interest Rate 5.09% | Debt Coverage 1.50 | Loan to Value 70% | Amortizations 24 yrs | Term Average 11 yrs

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Austin Warehouse Lease Terminology

Austin Flex warehouse or Austin office warehouse properties tend to have a higher finish out along with HVAC in place that covers one hundred percent of the space. Ceiling heights in Austin flex warehouse space are not necessarily has high as a bulk warehouse so if you need high ceilings this may not be the solution for you.

Expect an average of 3% per year for your lease rate to bump for an Austin warehouse property. The cheapest warehouse property type are the metal warehouses , if you go this route don’t expect low electric bills they conduct heat and get very hot in the summer.

How do you find the right warehouse space in Austin?

Fact: If you have a commercial real estate broker representing you , you will be able to get a better deal. Why?

Well, let’s think about this from a common sense point of view. If you do not practice and frequent the commercial real estate business for a living, you may a disadvantage in knowing where are the best properties and rates in the Austin Texas area? You can receive expertise that prevents you from making a poor leasing or purchasing decision on a warehouse property in Austin.

Contact us today for your warehouse leasing or purchasing requirements! 512.947.5896

Click here for:examples of succsesful warehouse lease and sales transactions.

Austin Office Space Information www.Austin-Office.com