The Austin office market has absorbed office lease space steadily since 2012 – until now. For the first time since then the market has finished a quarter with negative absorption or in other words the market is returning more lease space to the market than leasing office.
It is too soon to jump to any conclusions after one quarter of negative absorption but in the least it does seem to signal that the office market is settling into a more modest growth rate in absorption and rent.
- Q1 2016 absorption totaled 500,000 SF and Q2 2016 netted a negative 24,000 SF
- Rent is still on the rise increasing on average .9% over the quarter
- Year over year, the average Class A Central Business District Space has seen rent increase from $43.52/SF to $49.52/SF
- Suburban office rates increased slightly from $35.71/SF to $35.74/SF
- Almost 200,000 SF was added to the market during this quarter with the completion of 3 office buildings. These 3 buildings were 92% leased upon their completion. These buildings include 1 at the Domain, and 2 in Round Rock
- During the second quarter Unemployment has decreased from 3.3% to 2.9%
Click here for a link to Colliers International Research & Forecast Report Austin Office Q2 2016