Q2 2019 Austin Office Market

Tech Companies Fuel Growth

• 528,811 square feet (sf) of positive net absorption
• Most absorption came from Class B buildings with 430,300 square feet of positive net absorption
• Q3 2019 is forecasted for Offices at Saltillo to deliver. Totals 150,000 sf and is 100% leased to Google.
• Biggest new construction delivery in Q2 was SXSW Center in CBD at 140,000 sf and is 94% leased by large tenants including WeWork and SXSW.
• Average rental rate including expenses stands at $35.74/sf up from $35.55/sf in Q1 2019 and $34.37 in Q2 2018.
• Vacancy is down to 9.5% from 10.3 in Q1.
• Class A CBD rental rates are at $52.78/sf and suburban Class A space is at $37.97/sf.
• 5.29 million sf are currently under construction.

Colliers Q2 Austin Office Report