How the Pros Find the Best Rental Rate

//How the Pros Find the Best Rental Rate

The real story of where the deals are to rent office space at a discounted rate lie in the submarkets.

We’re going to take a look at 1314 Texas in Houston’s Downtown market. For years, this has been one of this market’s most affordable buildings at a gross rental rate of about $13-14 per foot. When you look at a 10 year average you can see that 1314 Texas really has not budged. You want the buildings that have a stable rate and buck the trends and don’t try to keep up with the investment grade properties in major markets.

A few years ago I put a growing law firm here that was very particular when it came to office space because they wanted immaculate finishings but did not want to pay the downtown rates.

He’s been there for the last five years, and because of the rate that we found him here compared to the market, he paid $80,000 less over his term than he would have.

In order to really capitalize on the best buildings to purchase or lease, you need to look at each building in that sub market.

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