Q1 2017 Austin Office Research & Forecast Report

Austin’s office market looks forward to a year full of deliveries

The Austin office market saw a continued “leveling out” of
both activity and rates in the first quarter of 2017. The average
vacancy rates increased to 11.4% from 11.1%, fueled in part by new
construction delivering with vacancy. Despite the additional space,
and a slight rise to vacancy rates, gross asking rents ticked slightly
upward from $33.17 to $33.25. Landlords and the money behind
them clearly remain bullish on commercial real estate in Austin.

Our local experts continue to see a significant level of sublease
space hitting the market as companies right-size and continue to
position themselves in less heavy traffic corridors (i.e. a flight to
the core or to a specific location central to existing workforce). Of
the nearly 800,000 SF of office space currently listed for sublease,
approximately 440,000 SF is located in the Southwest submarket.

Like traffic, cranes in the Austin skyline continue to be a way of
life. 2,817,709 square feet of office space was under construction
during Q1 2017 with notable buildings such as…click here to visit our website.