After three (3) consecutive quarters of positive net absorption, the Austin office leasing market went in the red for quarter 1 of 2009 giving back 158,281 square feet. Rental rates declined and vacancy rates went up. Overall vacancy rose to 20% for the first quarter, up from 19% in the fourth quarter of 2008.
Average annual rental rates per square foot went down from $27.65 in the fourth quarter of 2008 to $26.53 in the first quarter of 2009. Sublease vacancy is up by 100,000 square feet from the 4th quarter of 2008.
Absorption is expected to remain flat throughout 2009 and when considering that 300,000 square feet has been added to the market over the past year and absorption this quarter compared to quarter 1 of 2008 is down 4%, this equates to a stable office market especially compared to the rest of the country.
|Office Vacancy Rate||Full Service $/SF||Net Absorption SF||Sublease Inventory SF||New Office SF|