During the third Quarter of 2018, the Austin Office Market performed as follows:
- 448,000 SF of office space was absorbed. Class A absorption accounted for 336,000 of the total. However, year to date absorption remains at negative 230,000 SF.
- Vacancy is at 11.5%, down from 12.2% in the second quarter. The decrease in vacancy has resulted in a steady increase of rental rates.
- Transaction volume is dominated by large companies taking large blocks of space. For example-
- City of Austin leased 175,000 SF at 5202 E Ben White
- HEB/Favor leased 82,000 SF on E 6th
- PIMCO leased 47,000 SF at 401 Congress
- 2 million of 4 million new office development has been pre-leased.
- Overall average Austin office rental rate increased 2.51% to $35.45/SF. Class A average rental rates average $50.45/SF.
Source: Colliers International Research & Forecast Report, Austin Office, Q3 2018.
