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Q3 2017 | Austin Office | Market Report

Our “Boots on the Ground” view point is the voice of our experts, who have broken down the market data and compared it to what they are seeing for themselves. This is their take on what the numbers actually mean for the Austin office market.

As predicted, the office market has remained extremely strong and rates have seen a slight increase over the past quarter. The trend of big companies eating up large spaces has become the norm and the expansions of tech giants and co-working spaces have continued to embolden landlords and developers to bring speculative product to the market. Unfortunately for tenants, not enough of this product is becoming available beyond the preleasing phase to have a meaningful impact on rates or landlord concessions.

Q3 2017 Highlights

  

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Expertise

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Austin Office Market Indicators


 Q2
2017

Q3
2017


VACANCY RATE 11.6%
11.6% 
 
NET ABSORPTION
(Million Square Feet)
.229 -.189
NEW CONSTRUCTION
(Million Square Feet)
.264
2.40
UNDER CONSTRUCTION
(Million Square Feet)
1.584
3.80
CLASS A VACANCY RATE

 
     CBD 9.3%
11.0% 

     SUBURBAN 12.2%
11.8% 

GROSS ASKING RENTS
(Per Square Foot Per Year)
 
 
     AVERAGE $34.03
$34.02

     CBD CLASS A $49.84
$49.43   
     SUBURBAN CLASS A $34.57
$34.80   


Job Growth & Unemployment (Not Seasonally Adjusted)

UNEMPLOYMENT 8/16 8/17
Austin 3.4% 3.4%
Texas 4.9% 4.5%
U.S. 5.1% 4.5%
JOB
GROWTH
ANNUAL CHANGE # OF JOBS ADDED
Austin 2.1% 21.1K
Texas 2.4% 286.3K
U.S. 1.5% 2.1M

Texas