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Q2 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.

There are two mistruths I’ve heard perpetuated by the real estate community, including myself once or twice, over the past year: (1) This occupancy and these rates can’t last forever, and (2) MoPac construction should be done soon. 

The Austin office market rebounded sharply in the 2nd quarter, with extremely high Net Absorption of almost 600,000 RSF. Vacancy remained relatively flat, however rates continue to trend higher.

Q2 2017 Highlights

  

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Expertise

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Austin Office Market Indicators


 Q4 
2016

Q1
2017


VACANCY RATE 11.1%
11.4% 
 
NET ABSORPTION
(Million Square Feet)
.062
-.092

NEW CONSTRUCTION
(Million Square Feet)
.103
.842

UNDER CONSTRUCTION
(Million Square Feet)
2.190
2.817


CLASS A VACANCY RATE

 
     CBD 6.0%
7.3% 

     SUBURBAN 12.7%
11.7% 

GROSS ASKING RENTS
(Per Square Foot Per Year)
 
 
     AVERAGE $33.17
$33.25

     CBD CLASS A $50.71
$48.63   
     SUBURBAN CLASS A $34.26
$34.41   


Job Growth & Unemployment (Not Seasonally Adjusted)

UNEMPLOYMENT 2/16 2/17
Austin 3.0% 3.7%
Texas 4.6% 4.9%
U.S. 4.9% 4.7%
JOB
GROWTH
ANNUAL CHANGE # OF JOBS ADDED
Austin 2.8% 27.4K
Texas 1.8% 218.8K
U.S. 1.7% 2.36M

Texas