Q2 2017 Austin Office Research & Forecast Report
Austin’s office market continues to deliver as we hit the midyear mark
There are two mistruths I’ve heard perpetuated by the real estate
community, including myself once or twice, over the past year: (1)
This occupancy and these rates can’t last forever, and (2) MoPac
construction should be done soon.
The Austin office market rebounded sharply in the 2nd quarter,
with extremely high Net Absorption of almost 600,000 RSF.
Vacancy remained relatively flat, however rates continue to trend
Our local experts have seen an increase in general activity over
the past few months. CBD and East submarkets are still extremely
hot with significant competition for prime spaces. On the East
side, several large projects delivering throughout 2018 should help
create additional leasing opportunities near the CBD and in East
Austin, but new deals continue to trade at high rates, therefore
we’re not predicting rates to decline. There is no substantial help
on the horizon for the core CBD, however. The suburbs continue
to be reasonably healthy with a surge in medium and large activity
over the past five months, but there are still plentiful options and
Landlords are being forced to compete for deals.
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