Nobody has taken the Dr. Koop space because its risky. Despite the deluge of subleased space on the market , no one is budging from the Austin Technology Incubator, says Joel Wiggins, executive director. Long regarded as a haven for new companies with not much more collateral than a few good ideas, ATI does provide flexible low-cost space. But like many other incubators nationwide, ATI provides a collegial environment where experts and peers help each other solve issues related to growing a company. Rarely discussed, but a fact of life with subleased space, is another problem for startups with few extra dollars.
Startups usually look for space they can move into and just flip the switch.
With subleased space there is no finish-out allowance granted by the landlord. Sublessor's must make the shoe fit. That doesn't mean startups do not sublease. But the savvy ones look for the exceptions. For example, Isochron Data Corp., a recent graduate of the Austin Technology Incubator, moved to almost 14,000 square feet of subleased space in mid-May.