“De-graniting and de-brassing” – Austin’s downtown tech scene

Austin entrepreneur Campbell McNeill said WeWork’s “high energy environment, cool furniture” and location at Sixth and Congress in the heart of downtown allows his startup, Cocolevio, “to attract the young talent we need for our cloud business.”

“It would be considerably more expensive to set up a similar situation on our own as a new tech startup,” said McNeill, Cocolevio’s co-founder and chief technology officer. “We appreciate we may be paying a lot per square foot, but it is completely worth it when you consider the intangible WeWork benefits like networking with other great startups, making great friends, periodic presentations by industry leaders and WeWork Labs.”

Some more highlights from the piece:

  • “three out of four tenants looking for downtown space are likely to be tech-related, Kennedy said. ‘Ten years ago, it would have been less than half that.'”
  • “Rents for the highest quality office space in downtown Austin average $49.07 a square foot per year, according to Cushman & Wakefield. That’s 40 percent higher than top-tier space in the suburbs, where rates average $35.10 a square foot.”
  • “tenants can expect to pay anywhere from $150 to $200 per month per space for unreserved parking. Reserved spots are as high as $300 per month.”
  • “The number of downtown tech workers — between 14,000 and 15,000, according to estimates from the Greater Austin Chamber of Commerce — is still tiny compared with the region’s overall technology workforce, which the chamber estimates at abou 130,000.”

Source: Austin’s tech scene heats up downtown

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