Market Trend: Austin's Office Vacancy Decreases to 8.6%

Oct 22, 2014
CoStar

The Austin Office market ended the third quarter 2014 with a vacancy rate of 8.6%


The vacancy rate was down over the previous quarter, with net absorption totaling positive 760,226 square feet in the third quarter. That compares to positive 373,157 square feet in the second quarter 2014. Vacant sublease space increased in the quarter, ending the quarter at 685,467 square feet


Tenants moving into large blocks of space in 2014 include: SolarWinds moving into 229,792 square feet at The Summit at Lantana - Building 4; HomeAway, Inc. moving into 114,665 square feet at Domain 2; and Main Street Hub moving into 32,674 square feet at One American Center


Rental rates ended the third quarter at $28.93, an increase over the previous quarter


A total of six buildings delivered to the market in the quarter totaling 102,912 square feet, with 2,800,908 square feet still under construction at the end of the quarter


This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.2% from the previous quarter, with net absorption positive 27.56 million square feet in the third quarter. Average rental rates increased to $22.38, and 233 buildings delivered to the market totaling almost 13.2 million square feet



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