HOUSTON—Startups are continuing to power local economies and revive urban centers. And, the most effective way to entice entrepreneurs to plant flags in key US cities is through the pocketbook. Commercial Cafe looked at both class-A and class-B solutions in 29 cities across the country, with a baseline of $5,000 a month, and the corresponding amount of space that rental fee encapsulates, to uncover which cities provide the best bang for the buck.

In Houston, tenants can snap up 50% more class-B office space than in New York City for the same monthly rent. The most expensive class-A office market in Texas is Austin, where $5,000 a month translates to 1,087 square feet, followed by Houston, Dallas and finally, San Antonio, with 2,226 square feet of office space for the same amount.

While growing a business, entrepreneurs have little leeway in terms of budget distribution and the top priority goes to the location of space. Of course, class-A locations with the newest buildings have a class-A price.

That's why class-B could be a better bet on which to build–more affordable, more versatile and generally in great shape. Second-generation properties are worth considering when choosing office space for a startup. Though not top of the list in specifications, class-B space can offer what a small business needs and, most importantly, rental rates tend to be more startup friendly, even in the center of the metro.

In the CBD primary location of West Houston, there are 13 completions totaling 3.25 million square feet of class-B space, GlobeSt.com learns. In secondary locations of West Houston, there were two completions totaling 339,611, according to Yardi Matrix.

Instant Insights /

How Much Office Space Does $5,000 Monthly Buy?

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