One of the better trends in urban design is to include retail space below residential buildings. I see downtown Austin’s retail offerings as overly homogeneous: salon, boutique, restaurant, or bar. Feedback from DANA members, and urban-Austinites in general, is the desire to see more practical stores to serve the many thousands of people that live and work here.
After the jump are a few examples of the ground floor retail space currently available below some of downtown Austin’s luxury buildings. You’ll see that space below these buildings is not cheap and ranges from $30-36 per foot plus NNN. This could yield a monthly lease payment of $3,500-4,000 per month per 1,000 feet of retail space.
The Downtown Austin Alliance has a great list of retail vacancies you should check out, too.
Monarch Retail Space
$32NNN
Austin City Lofts Retail Space
$30NNN
Austonian Retail Space
http://www.loopnet.com/xNet/Looplink/Profile/Profile.aspx?LID=15249162&LL=true&STID=cbre
$36NNN
Four Seasons Retail Space
http://www.loopnet.com/xNet/Looplink/Profile/Profile.aspx?LID=15759505&LL=true&STID=cbre
$36NNN
-Jude
“NNN” or “triple net” means the quoted lease rate is “net of” property taxes, insurance, and common area maintenance. These are variable expenses that can tack on an extra $10 per foot per year, or more.
The alternative to a NNN lease is a “gross” lease which typically includes all fees and expenses in the quoted lease rate.
What does NNN mean?