The Austin office market saw a continued “leveling out” of both activity and rates in the first quarter of 2017. The average vacancy rates increased to 11.4% from 11.1%, fueled in part by new construction delivering with vacancy. Despite the additional space, and a slight rise to vacancy rates, gross asking rents ticked slightly upward from $33.17 to $33.25. Landlords and the money behind them clearly remain bullish on commercial real estate in Austin.
Our local experts continue to see a significant level of sublease space hitting the market as companies right-size and continue to position themselves in less heavy traffic corridors (i.e. a flight to the core or to a specific location central to existing workforce). Of the nearly 800,000 SF of office space currently listed for sublease, approximately 440,000 SF is located in the Southwest submarket.
Q1 2017 Highlights
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