Round Rock Incentives

Round Rock Incentives

Summary taken from Round Rock Chamber of Commerce

The City of Round Rock and the Round Rock Chamber are offering customized incentive packages for relocation and expansion of businesses. Assistance may include tax abatements, waivers of fees, job training , and fast permitting. Here is a summary of the incentives on the table:

Tax AbatementsAustin Growth Population

Tax abatements are incentives being offered by Round Rock Texas for new businesses and existing expansions, included in this are personal property tax abatements associated with real property. If your business is making improvements to a facility or adding new equipment that add tax value those improvements may be considered for an abatement.

Financing and Grants Possible

Round Rock has a chapter 380 government code that provides authority to grant a loan of city funds to promote economic development. A 380 grant would be in the form of a municipal sales or property tax rebate. Performance based cash grants can be offered on job creation, capital investments and other factors as well.

Round Rock Incentives with Permitting and Job Training

Permitting incentives to fast track a project exist. Local officials can customize a development time table for businesses requiring and aggressive build schedule. Round Rock touts this as a distinct advantage versus their neighboring towns. The Round Rock Chamber can assist companies locating or expanding in Round Rock by securing state-provided job training. The Texas Workforce Commission offers the Skills Development Fund and other training to finance customized job training provided by public community and technical colleges. Please see the Job Training Resources page for detailed information.

For help with relocation and expansions, Shire Commercial has been helping clients since 2004 to locate their businesses.


Gross and Net Leases

Gross and Net Leases for Office Space

No matter which type of business is reflected, the commercial real estate lease is a binding agreement created to defined the terms of occupancy for a tenant. Bottom line, most commercial real estate leases whether they are gross or net leases are drafted to offload as much exposure from the landlord onto the tenant as much as possible. It is for that reason that a tenant should understand that searching and negotiating a lease thru a brokerage like Shire Commercial, is not the whole enchilada.  A seasoned broker will offer you as a Client more services that just finding you a space, anybody can do that.  On top of lease reviews, a good broker who represents your interests will point out potential issues in a lease and recommend that you consult a legal authority for more detailed review.

Gross vs Net Leases Commercial Real Estate Broker in Austin

Roughly speaking, there are 2 main types of leases for office space in the Austin area, they are gross and net leases. While both may represent some risks for tenants, the gross lease offers the biggest chance for the lease language to hide some pitfalls . Why? This is because Net leases are written to have the tenant responsible for pay for property expenses beyond rent  to include taxes, insurance and maintenance , almost as if you as the tenant own the property.  A Gross lease on the other hand detail out the tenant expense beyond rent in details that need some attention right away. These attentions to detail include: units of measurement being used and calendar years being referenced within a lease.  Having a firm grasp of the details within a Gross lease versus a Net lease is important for a tenant to understand.

Austin Office Report Q3 2018

Austin Office Report Q3 2018

Lets take a quick snapshot overview of the Austin Office Report for Q3 2018,  activity compared to the past couple years is slowing a bit. Vacancies for office space properties have remained in the 9.5-10.5 % range for the 2018 year and moving into Q4 are hovering in at 10.2%.  Lease rates on average have moved down a bit but not significantly and are still coming in at over $35 per square foot per year as an all in (Full service gross) rate.  Near term the forecast is continued demand and occupancy consistency.  Tenants looking to lease office space according to our Austin Office Report should expect operating expenses to be higher overall , recent forecasts show an increase of approximately 0.20 cents per square foot per year.  Subleasing activity is an indicator of consolidation and or a potential slowing in the economy, we have seen more office subleases come onto the market in the past quarter.  Subleases can provide an advantage to start up companies or businesses that need a shorter term lease, the downside to subleasing is that there are no tenant improvements typically.

Development and Construction

The Austin office report for Q3 2018, does show year to date activity to be slower than previous years.  Approximately 200,000 square feet of new construction has commenced in Q3 2018 which brings the current development construction to over 4M square feet of additional space. 

 

Commercial Real Estate Broker Austin

Why you should hire a Commercial Real Estate Broker in Austin?

Whether you are a Buyer , Tenant or Seller of a commercial real estate property in Austin , wouldn’t you need a trustworthy professional to help you get a reasonable deal and help you avoid problems? There are plenty of situations over the past 15 years, where we have encountered the “do it myself” folks only to hear that they now have issues and need help, perhaps a bit too late?  Simple examples such as executing a lease that is way over market and now they are stuck and can’t sublet cause its too pricey.  They didn’t know what to look for in a lease document and now they have to pay much higher NNN expenses or they are liable for HVAC replacements.  There are many more examples that we can fill this article with.  So let’s discuss why its a smart move for you to hire a Commercial Real Estate Broker in Austin?

What is required by Brokers?Commercial Real Estate Broker in Austin

A professional commercial real estate broker in Austin must be licensed by the Texas Real Estate Commission and take continuing education every 2 years to renew their license.  You can’t get that looking at Loopnet like everyone else, there is expertise and knowledge from direct experience that has to be gained.  A Broker has a fiduciary to their client, that means represent their clients interests above their own first.  Does that mean a commercial real estate broker just does whatever their client tells them to do? No, it does not if a Client asks a seasoned professional to do something that is out of line, unreasonable they owe it to their Clients to let them know that it isn’t a good strategy and why.  Think about it, what is the reason to have experience and training if everyone knows more than you do, the bottom line is they don’t although the internet may trick you into thinking so.

Avoiding Problems

Filling our promulgated forms correctly is critical, which by the way costs the commercial real estate broker money just to have access to these. As a client, you get them for free! What a Deal! We have exclusive access to over 100 different forms , as a buyer, tenant or seller you have access to a few if you go it alone.  All commercial real estate brokers in Austin are supposed to abide by the National Association of Realtors Code of Ethics , the Code of Ethics holds commercial real estate brokers to a higher standard of professional behavior.  A Commercial Real Estate Broker in Austin has access to subscription only tools that we an pair with our experience of the local market and its trends to make sure negotiations are in your favor.  Don’t know what to look for in a For Sale contract, lease contract or listing agreement? We do.. although we cannot provide legal advice on language or re-write provisions we are able to point out the warning signs for Clients.  So, if you have a property for sale, property for lease, looking to purchase or looking to lease why not get an advantage to your team today? We are here to help, we help you, then we help ourselves in that order.

Austin Office Market Q2 2018

Austin Office Market Q2 2018

Austin’s office market for Q2 2018 remained flat for the first half of the year compared with 2017. Although, occupancy has not changed much the vacancy rates have moved upwards  overall at around 10%.  We are seeing a slowing of occupancy taking place and more sub-leasing activity, this tends to be a sign of a consolidation or a slowing of activity.  Vacancy rates can be skewed however due to new deliveries of inventory which encompasses 6 new office building properties being delivered.  Also new construction shall provide an additional 800,000SF of office space coming on the market.

Austin Office Market Operational Costs

In addition to increasing lease rates, operational costs are on the increase as well. Overall operational costs have increased $0.44 cents per square foot to an average over $10 per square foot per year for office properties.  NNN asking rates increased overall $0.41 cents per square foot from the 1st quarter to the 2nd quarter of 2018.  Annual gross rates overall are at a historical high of $35.84 per square foot per year. Job grown has expanded at 3% annualized in Q2 2018.  Asking rents comparisons over the past 3 years are as follows:

2015 $31.81  

2016 $34.83

2017 $34.39

2018 $35.84

Austin Office Market Q1 2018

Austin Office Market Q1 2018  | Summary and Report

Austin’s office market is staying within a specific lease rate range with some major increases in certain sub-markets based on our vacancy reporting. Vacancy has increased to close to 10% coming up from the 8% range in the last quarter for 2017.  2017 came in at a 16 year low for vacancies at 8.8%.   Lots of new development are still being constructed with forecasts telling us an additional 700,000SF of new office projects within the Austin Market.

OPEX Costs  (NNN) and Office Market movement

Operational costs are still on the up-rise averaging an up tick of $0.17 per square foot per month. Office market movement in Austin for Class A still remains robust with increased leasing rates especially in Downtown Austin.  Full service gross leasing rates for Class B offices are coming in at just under $35 per square foot per year which is a new high for the Austin office market. Austin employment is still moving up going into the 2nd quarter of 2018.

Lease Rate Comparisons across various sub-markets

Austin Commercial Office Space for Lease 5,000-10,0000+SF

Downtown Austin in 2012 : $36.08 per square foot  compared to 2018 $46.57 per square foot per year

Northwest Austin in 2012: $25.83 per square foot compared to 2018 $35.25 per square foot per year

Round Rock TX  in 2012:  $21.00 per square foot compared to 2018 $24.00 per square foot per year

Southwest Austin in 2012: $26.80 per square foot compared to 2018 $35.29 per square foot per year