The 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
