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
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