Job growth propels Austin office rents, occupancies

Oct 14, 2013
Austin American Statesman

Buoyed by Central Texas’ job growth, average rents for top-tier office space rose to a record high in the third quarter, while the occupancy rate reached its highest level since the recession, Oxford Commercial said Friday


Rents for so-called Class A space averaged $32.17 a square foot, up 7.6 percent year-over-year and an all time high, said Greg Johnston, a partner with Austin-based Oxford, which tracks the market


The occupancy rate for Class A space was 88 percent, putting the region above the 2007 mark of 86.5 percent — and quickly approaching the 2006 level of 89 percent


Rising high-tech employment has helped fuel double-digit rent growth in 10 U.S. tech-dominated submarkets, according to the latest research from CBRE Group Inc


“Business activity is very high, with over 4 million square feet of office prospects looking for space in Austin,” Johnston said


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