MARKET TRENDS
The Austin office space market has proven to remain strong with the start of 2015. As demand remains high, the market continues to tighten and great office lease deals are becoming harder to find. This Austin Office Market Report newsletter is distributed as a means of informing our clients and commercial real estate tenants about ways to save time and money during the office leasing process.
As the price of oil has recently plummeted, many of the local economies in Texas have been hurt. However, the Austin market has remained fairly undisturbed. The wealth of other industries, such as technology and healthcare, are to thank for this. Tenants of all types continue to aggressively pursue office space throughout Austin, and Google Fiber has begun offering insanely fast internet speeds to the Austin office space users.
The Austin office market has experienced 262,983 sf of positive absorption this quarter; which continues to spur the development of over 3 million square feet of new Austin office space by the end of 2015.Due to the unprecedented demand by office tenants, three and five year leases are often the minimum required lease terms and the Austin office space market continues to remain in favor of the landlord. Leasing activity has remained strong throughout the city, with Class A buildings in Northwest Austin and Downtown Austin remaining very popular.
VACANCY AND RENTAL RATES
The trend of high demand for Austin office space continues in 2015, thus the citywide office space vacancy rate has decreased to 9.9% from 11.0% at this time last year. Rental rates in turn have risen steadily to an average of $27.26/sf for office space throughout the Austin market, up $25.24/sf/yr from a year ago.
ADDITIONAL INFORMATION
If you are interested in rental rates for a certain location or are seeking Austin office space for lease or purchase, please contact us with your requirement.