Schedule your consultation today.Podcast: Play in new window | Download (Duration: 1:15:31 - 17.3MB) Ready to talk about your next office space?Īn AQUILA tenant representation expert is ready to talk to you. Competition for the building was high given its desirable location and the dearth of purchase options available in the market, which allowed AQUILA to leverage the buyers against each other in order to secure a high purchase price for the property. Shortly after marketing for the property began, AQUILA secured a buyer for the existing office building and achieved the highest sales price per square foot in Central Austin to date.
This meant that Zello will not have to pay rent on the full 15,000 sf until the sublease expires and the company is ready to expand into the full space. The SubleaseĪQUILA identified and secured a short-term subtenant prior to the phased expansion.
This allowed Zello immediate room to expand and the ability to keep hiring, relieved the cost to move offices twice – first into the temporary space and subsequently into their long-term space, and allowed them to move forward with the sale of their office building. Zello was able to occupy the space immediately and at no charge throughout the build-out process. The space at Hartland Plaza required significant construction to be built out to Zello’s specifications which would take a number of months.Īs a part of the negotiations for the Hartland Plaza space, AQUILA secured a temporary space within Hartland Plaza for Zello to occupy during the construction project. A Temporary Solutionīecause Zello occupied the house, they needed to secure a new office space to move into before they could vacate the space and allow a buyer to move in. This would allow time to secure a subtenant to mitigate the obligation on the second half of the space, as Zello only needed about half of the suite for the first few years of the lease as they expanded.įinally, the landlord also conceded building signage rights to the tenant, which is uncommon for a tenant of Zello’s size. AQUILA leveraged their relationship with the landlord to give Zello the edge and secure the space.Īdditionally, AQUILA negotiated a phased-in expansion, in which Zello only paid for half of the space for the first 12 months. In fact, there was another company vying for the suite that had better credit. However, Zello was not the only tenant interested in the space. The building is located just down the street from the house they currently occupied and the suite featured a private patio overlooking the downtown skyline. The New Office SpaceĪfter exploring the available options on the market, Zello identified a 15,000-sf suite at Hartland Plaza as the right option for the company. The market was extremely tight for their size range in and around downtown, and purchase options, especially at their desired size, were minimal. They needed 7,000 to 8,000 sf immediately, but planned to eventually occupy up to 15,000 sf over the next few years. Additionally, they hoped to find a space with an outdoor component, like a patio or balcony. The Zello team was open to both purchase and lease options, but knew they wanted to remain in the same neighborhood between Lamar Boulevard and Mopac Expressway. The company was bursting at the seams in their current offices, but liked their location on the west side of downtown.ĪQUILA was engaged to represent them in the acquisition of a new office space, and the subsequent sale of their existing office building. Zello’s converted house on West Sixth Street.