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Oct 23

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Austin Office Market Quarter 3, 2015

downtown skylineThe Austin Office Market for Quarter 3, 2015 continues to explore new heights of superlatives with the latest news regarding its performance.  Highlights include:

ABSORPTION

  •  649,339 square feet of positive net absorption for the quarter which is the highest quarterly absorption since Q4, 2012.
  • Year to date absorption surpassed 1.5 million net square feet.
  • If Q4 2015 net absorption is around 300,000 square feet this will set an all time high for annual net absorption.
  • Year to date net absorption for Class A now totals 1.5 million square feet.

RATES

  • The average asking rate is $31.53/square foot which is $2.30/square foot greater than one year ago.
  • Class A average asking rate totals $36.36 / square foot, Class B is averaging $25.61 / square foot, and Class C comes in at $21.50 / square foot respectively.
  • Highest asking rates remain in the Central Business District where they currently total $40.53 / square foot, followed by the Southwest market at $33.77 / square foot, and the Northwest at $31.43 / square foot.

VACANCY

  • Vacancy rate is at 10.9%, the second lowest rate ever and the lowest since Q4, 2014.
  • Central Business District vacancy tightened to 7.8% with Class A space at 8.8%.

CONSTRUCTION

  • Finished construction has exceeded two million square feet year to date, the highest level of new product delivery since 2008.
  • Two buildings totaling 340,000 square feet were delivered in the third Quarter with 28% of the lease space in these buildings pre-leased.
  • New construction starts in the 3rd Quarter include Domain 8 which totals 291,000 square feet with none pre-leased to date.

CBRE Austin Office, Q3, 2015 Report

Permanent link to this article: http://atxre.com/austin-office-market-quarter-3-2015/

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