As the city’s workforce and population grows, the need for more Southwest Austin office space, warehouses and industrial parks also increases.
According to the Austin Chamber of Commerce website, the 2015 local population increased 37.7 percent in the past decade. U.S. Census Bureau estimates show Austin remains one of the top destinations for migrating workers.
The cost to lease downtown work spaces is estimated at $57.86 per square foot for a Class A building. In Southwest Austin, lease costs are estimated at $39.53 per square foot for the same building. The influx of population growth, estimated at 3 percent citywide for the 12 months ending in July 2015, according to the Austin Chamber of Commerce website, is making Southwest Austin more viable for office projects, Aquila Commercial principal David Putman said.
Buildings and office spaces are emerging as part of mixed-use developments in the area that also include access to retail stores, restaurants and exercise facilities, Putman said.
An Aquila Commercial Austin Market Report for the first quarter of 2017 said mixed-used developments are used by businesses to recruit employees, inadvertently driving the increase in office space.
“People want stuff around them,” Putman said. “So developers are starting to include different amenities in their buildings to stay competitive.”
Developers bring office space to Southwest Austin
Some Southwest Austin developers choosing to include office space in their mixed-use developments say they hope to provide amenities not only to nearby residents, but also to area employees.
Developer Doug Ivey said he decided to build Lantana IV, a mixed-use development currently under construction in Oak Hill, due to the growing need for more businesses and restaurants in the area.
Once fully built out, Lantana IV, located at Southwest Parkway and Terravista Drive, will include a restaurant, the WonderWell School, retail businesses and over 30,000 square feet of office space, which Ivey feels will offer a variety of options and convenience for residents working and living in the area.
Warehouse mixed-use developments are also in demand in Southwest Austin, according to area developers.
Office space found in warehouse developments is tailored toward smaller businesses looking for manufacturing and shipping space, said Ron McGuire, owner and developer of the 43,000-square-foot Nutty Brown Business Park near the intersection of Hwy. 290 and Nutty Brown Road.
The business park has the capacity to house 18 tenants in seven buildings, one of which can accommodate 3,300 square feet of office space. Space is still available for lease.
The shift to co-working spaces
The demand for co-working space, a shared working with independent activity, is based on the need for flexibility and convenience in the business world, Orange Coworking owner Shelly Delayne said.
Orange Coworking, located at 2110 W. Slaughter Lane, Ste. 160, offer Wi-Fi and meeting and conference rooms.
“The primary users of co-working spaces are entrepreneurs, startups and small businesses,” Delayne said. “With these co-working spaces [workers] can focus on doing business and not worry about the infrastructure costs.”
Wafa Rivera, owner of the Manchaca Industrial Center, a nearly 20,000-square-foot office warehouse facility located at 12300 Wirth Drive, said she is working to develop a co-working space adjacent to the development. The facility will offer Wi-Fi, a few offices, and a shared conference room and break room.
“Everyone who calls is looking for 700-1,000 square feet of office space,” Rivera said. “What we’re seeing is there is a need for office space now, and I wanted to move forward with this project because I want to be able to offer a variety [of workspace options].”
