"We were hoping, in some respects, to open in June," Sebastian Royle, Techspace's director of sales, tells GlobeSt.com. "But it's better for the companies who want to move in to do it in September." Royle says Techspace has yet to sign a lease with an Austin tenant, but is talking with several interested parties.

Techspace, based in New York, leases office space for as short as three months and offers office services for fees. It has pulled back from an incubator model as venture money dried up and start-ups followed. In May, it added 16 tenants to five spaces in the US and Canada. In Austin, it is building out space at 301 San Jacinto, a block east of Congress Avenue and the former home of the Voodoo Lounge, a music club.

Its key markets such as New York and San Francisco have felt the impact of the dot-com bust and slowing economy. In Austin, Techspace enters the market as sublease space is rising and new company activity is declining.