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What is a HUBZone and How Do I Find Out Where They Are?

The following post is copyrighted by Austin Tenant Advisors – .

hubzone austin tx

HUBZones (Historically Underutilized Business Zones) are programs created by the Small Business Administration (SBA) to help companies expand and grow in economically distressed communities by promoting job growth, economic development, and capital investment. They do this by providing small businesses that operate and employ people in these  economically challenged communities contracting opportunities that they would not otherwise have access to. The federal government’s goal is to award 3% of federal contracts to companies that operate in HUBZone map locations

If you need to buy or lease Austin commercial real estate in a HUBZone give us a call at 512-861-0525 and we can help you find the right space for your business.

Criteria to Qualify For HUBZone Designation

  1. Must be a Small business based on NAICS (North American Industry Classification System)
  2. U.S. Citizens must own at least 51% of the business
  3. The main head quarters must be located in a HUBZone
  4. 35% of the businesses employees must live in the HUBZone

Where are Hubzones in Austin Texas Located?

In Austin you will find most of the Hubzones in Central Austin, East Austin, Northeast Austin, and Southeast Austin. If you are a business that is looking to take advantage of the Austin HUBZones then you will want to make sure you focus on the areas outline in the photo or if you enter your city or specific address you will be able to see if your ideal location falls within the HUBZone in Austin, Texas

If you need help finding Austin commercial office spaces for lease or purchase in a HUBZone feel free to contact us for help.

The post What is a HUBZone and How Do I Find Out Where They Are? appeared first on Austin Tenant Advisors.

Cityline at MLK Station East Austin Office Space For Rent – 2900 E Martin Luther King Jr Blvd

The following post is copyrighted by Austin Tenant Advisors – .

cityline at mlk stationCityline at MLK Station is a creative office building located in East Austin at 2900 E Martin Luther King Jr Blvd. If you are interested in leasing office space in East Austin at Cityline give us a call at 512-861-0525

Building Size – 181,000 RSF

Creative Office Space – 134,000 RSF

Ground Floor Retail – 11,000 RSF

Residential – 36,000

Typical Floor Plate – 3,530 to 35,000 RSF

Parking – Parking ratio 3.5/1,000 sf. 

Amenities – Dog friendly office space, MLK Jr MetroRail Stop, Bike storage, outdoor space with free wifi, rooftop terrace, showers, 

Transportation – Minutes to downtown, UT, and Dell Med Center and tenants can use the onsite MetroRail stop

Ckityline at MLK was designed for tenants who seek creative office space with designs such as  open ceilings and stained concrete floors. This amazing location will make it easy for your employees to take advantage of Austin’s public transportation whether you want to go to visit office tenants at Domain 11 or in Downtown Austin.

For rates and info on available spaces give us a call and we will help you find the perfect creative office space in East Austin at Cityline. 

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Domain 11 Office Space for Rent – 3110 Esperanza Crossing Austin Tx 78758

The following post is copyrighted by Austin Tenant Advisors – .

office space for rent domain 11 austinDomain 11 Office Building is located in North Austin at 3110 Esperanza Crossing. If you are interested in leasing Austin office space at Domain 11 give us a call at 512-861-0525

Building Size – 315,862 RSF

Building Height – 15 stories

Typical Floor Plate – 33,396 RSF

Parking – Parking ratio 4/1,000 sf. Garage parking on levels 1-6

Amenities – Fitness Center with showers, Bike storage, jogging trails, 18,000 sf of outdoor park space, floor to ceiling windows

Walking Distance To – Whole Foods, Archer Austin hotel, Rock Rose Blvd

For rates and info on available spaces give us a call and we will help you find the perfect office space at the Domain in Austin, Tx.

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Domain 12 Office Space For Rent – 3110 Esperanza Xing

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domain 12 office space for rent Austin TxDomain 12 Office Building is located in North Austin at 3110 Esperanza Xing. At 17 stories It will be the tallest office building at the Domain. If you are interested in leasing office space at Domain 12 give us a call at 512-861-0525

Building Size – 320,102 RSF

Building Height – 17 stories

Typical Floor Plate – 33,405 RSF

Parking – Parking ratio 3.8/1,000 sf. Garage parking on levels 1-8

Amenities – Bike storage, Showers, jogging trails, 35,000 sf of outdoor park space

Walking Distance To – Whole Foods, Archer Austin hotel, Rock Rose Blvd

For rates and availabilities give us a call and we will help you find the perfect Domain office space.

 

 

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How Much Does it Cost to Use a Tenant Representation Broker?

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cost to use tenant representation broker
Austin Tenant Representation Broker Nathan Smith

When renting commercial real estate you can find and rent space on your own OR you can hire a tenant representation broker to help you find and lease commercial space. A good tenant rep will help you determine how much space you need now and in the future, find the best location for your business based on your needs, and negotiate the terms and lease contract to ensure you get the best deal and avoid mistakes.

There are many benefits of using a tenant rep broker. Once they determine your ideal size, location, budget, and timing they will compile a list of properties specific to those needs then tour them with you so you can see in person. They also ensure to ask the landlords all the right questions so you know the expectations for each property. Once you find a property or two that works the tenant rep broker will negotiate on your behalf with the landlord. Commercial leases are typically 3-5 year commitments and having the right tenant representation broker in your corner will make a big difference.

It Cost You Nothing to Hire a Tenant Rep Broker

You think with all the service benefits of a tenant rep broker provides you would have to pay a fee. However in commercial lease transactions tenants don’t typically have to pay anything for their services. Commercial landlords benefit when tenants lease space in their buildings and are willing to pay the tenant representative a broker fee in return for bringing them tenants. Landlords budget for these types of expenses and they are used to paying their listing agent and a tenant rep in most commercial lease deals. Don’t worry though, even though a landlord pays the commissions the tenant representative you hire has a fiduciary duty to represent your best interests and maintain confidentiality. 

Typical Tenant Rep Commission Fees Paid By Landlords

Only in the event a lease is executed is when a tenant rep is paid a commission by the landlord. The amount depends on the type of space, type of lease, length of lease term, and the market you are in. In Austin, Tx below are the typical commission percentages that a tenant rep makes.

Commissions Paid to Tenant Representatives on Office Leases 

4% of the total gross rent throughout the lease term. The gross rent is calculated by adding the base rent plus the operating expenses (aka nnn). For example if the total lease amount over a 5 year period is $300,000 then the tenant rep would make $12,000. ($300,000 x 4%)

Commissions Paid to Tenant Representatives on Industrial Leases

4% of the total base rent. Operating expenses are not included. For example if the total base rental amount for the entire 6 year lease term is $1,000,000 then the commission would be $40,000. ($1,000,000 x 4%)

Commissions Paid to Tenant Representatives on Retail Leases

4% of the total base rent. Like industrial leases operating expenses are not included. For example if the total base rental for a 5 year lease term is $600,000 the commission would be $24,000

Overall the use of a tenant representation broker is of great value to you, however there is no out of pocket costs for you to use their services. The landlord is paying their listing agent the full commission regardless if a tenant rep is involved or not so why not have someone represent your best interests.

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Costs to Consider When Buying Commercial Real Estate Property

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costs to buy commercial propertyWhen purchasing commercial property you will incur other costs in addition to the actual sale price. Below are a few costs to consider that you will have to pay during the due diligence period before the closing and costs incurred during the actual purchase process.

  • Phase 1 Environmental – This is an environmental report on the commercial property. Typically the commercial buyer pays for this. The cost typically run between $1,500 and $2,500 for good locations. For poor property sites the costs could be even more.
  • Appraisal – When borrowing money from a bank they will require that you get an appraisal done. Buyers typically pay for the commercial appraisal. Depending on the size of the property they can start at around $2,000 and go up from there.
  • Survey – If there is no existing survey a buyer would want to have one created. The cost depends on the size of the land & improvements and is typically paid for by the buyer, however in some cases you can get the seller to reimburse for part of the cost. As an example for a 5 acre commercial property it would be $5,000 to $7,000.
  • Loan Origination Fees – If you are purchasing the commercial real estate property via a bank loan you might be required to pay a loan origination fee. This is typically 1/2 to 1% of the loan amount. Depending on the size and terms of the loan there maybe other lender fees as well.

If you have not purchased commercial real estate before it would be a good idea to get help from a commercial real estate broker. They can help you navigate the process of buying and selling your commercial property and give you valuable market information. There are also other things you need to know when buying commercial real estate

If you have any questions about this don’t hesitate to give us a call.

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What Costs to Expect When Budgeting Commercial Office Space Build-Out

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commercial office buildout budgetBefore signing a commercial office space lease it’s important that the tenant or the landlord get a preliminary construction bid to see how much the tenant improvement allowance will cover and how much out of pocket (if any) the tenant has to come. This way there are no surprises later and the tenant does not spend more than they were prepared to spend.

Major categories that go into a preliminary commercial finish out bid and their percent of total costs

  • Hard Costs – Will be 75% to 85% of your construction budget. They will always be the largest piece because they include the actual construction of the space and the costs depend on the size of the space and quality or level of finishes. They typically cover the mechanical, electrical, plumbing, paint, flooring, drywall, doors and windows, and framing.
  • Soft Costs – 8% to 12% of total costs. Are things such as architectural fees, legal fees, engineering fees, TAS ADA review, permit expediting, reimbursables. Typically easier to estimate than hard costs
  • Vendor Costs – Typically 5% to 10% of total budget. Items such as furniture, data and phone cabling, security, moving, and signage costs are vendor costs. It can sometimes be negotiated to have the tenant improvement allowance cover these items however typically the tenant pays for them.
  • Contingency Allowance – 5% to 10% of budget. The reserve of money that is added to a project budget to cover unforeseen expenses and changes. Also covers scope creep which are items that are added after the fact.
  • Project Management Fee – This ranges between 3% and 5% of total costs. Project managers help you mange the project, help with the schedule, budget, and quality of project.

Those are the primary categories and percentage of costs. To see the average sf price for tenant finish outs go here.

 

 

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