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Nov 27

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3rd Quarter 2018 Austin Office Market Data

Austin Skyline

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.

Permanent link to this article: https://atxre.com/3rd-quarter-2018-austin-office-market/

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