Austin Sublease Space on the Rise
- Subleases in the Austin Office Market have skyrocketed with companies including Parsley Energy and GoDaddy listing over 100,000 square feet each.
- Sublease inventory is up 40% since the first of April, 2020.
- The number of subleases has more than doubled when comparing year over year.
- Despite the rise in subleases, large developments like Google and Indeed continue with construction of their new office towers.
- Q2 of 2020 brought over 276,000 square feet of negative net absorption to the market place, with Class A buildings accounting for 165,602 square feet of the total.
- 7,000,000 square feet of office space is currently under construction and over 2,000,000 of that is pre-leased.
- City wide average rental rates increased over the quarter one numbers from $36.36 to $36.41/square foot/year.
- Class A rental rates in Austin CBD decreased from $53.43/square foot/year to $52.99/square foot/year.
- Citywide vacancy increased from the first quarter rate of 13.1% to 13.6%.
Click Here for the Austin Office Report courtesy of Collier’s International.