Average rent is down to $27.92 / square foot compared to $30.28 in the same quarter of 2008 and down as well from $28.49 the second quarter 2009 average.
Far Northwest Austin shows the largest vacancy rate at 29.6% up from 22.1% in 2008, quarter 3.
Southwest Austin at 24.3% is the next highest vacancy by area up from 21.7% in quarter 3 2008.
“Absorption is tied to job growth, and we’re not having job growth, so we’re not having absorption,” said Ford Alexander, a partner with Oxford Commercial. Many companies are “loading up a lot of the bad news in 2009 and hopefully will be in a position to take a little more risk and grow in 2010,” he said.
Looking at all Office Classes – A, B, and C vacancy is at 21.9%, up from 21.3% in quarter 2, 2009. Average rental rates across all office classes declined from $26.08/square foot / year to $25.68 / square foot / year.