Vacancy for Class A space was 24.9% at year’s end according to Oxford Commercial. This number reflects no change from Quarter 3 to Quarter 4 of 2009 but also represents the highest vacancy level since the end of 2004 when it reached 26.8%.
Class A rental rates averaged $27.64 / square foot per year – the lowest level since the end of 2006, when the rates averaged $26.19.
“Until we start having positive job growth, the market’s not going to have a lot of leasing activity,” said Karen Judson, vice president of marketing and research in Austin for Transwestern.
Kevin Kimbrough, local partner for Oxford Commercial noted that the heavy declines experienced in the first three quarters of 2009 were not prevalent in the last quarter and in some areas of the city, pricing actually increased.
Kimbrough also stated that subleased space rocketed to the highest level since 2003, another sign of a weakened office market.