Lender Finds Two-Year Sublease Tenant

AUSTIN-Avatar Technology, one of Austin’s Top 50 growth companies, is getting comfortable in 2,500 sf of sublease space contracted for the next two years from Advantage One at 11824 Jollyville Rd. in the northwest submarket.

Rick Whiteley of Colliers Oxford in Austin tells GlobeSt.com that the sublease covers the balance of Advantage One’s agreed term with Cornerstone Office Park’s building owner, Manolek DV of the Netherlands. The office configuration and rate in the $14 per sf range were the deciding factors, he says. “The rate drove a good part of it,” the tenant’s representative added.

The submarket’s average rate for sublease space is $17.77 per sf, according to Mike Buls of Buls Hodge Consulting, Austin’s sublease watcher. The city’s high-tech favorite landing ground was the first to fall about two years ago and has held its lead on other areas in terms of sublease availability. Today, the sublease vacancy is 1.48 million sf of the 3.48 million sf sitting empty in Austin.

Whiteley said Avatar Technology checked out at least a dozen office buildings before settling on Cornerstone Office Park. It has relocated from a smaller office along Greystone Drive where it’s had an office for three years. Jay Thiesen of Henry S. Miller Commercial’s Austin team negotiated for the building owner.