Market Trend: Austin's Office Vacancy Decreases to 9.3%

Jan 20, 2014
CoStar

The Austin Office market ended the fourth quarter 2013 with a vacancy rate of 9.3%


The vacancy rate was down over the previous quarter, with net absorption totaling positive 497,832 square feet in the fourth quarter. That compares to positive 294,915 square feet in the third quarter 2013. Vacant sublease space increased in the quarter, ending the quarter at 397,128 square feet


Tenants moving into large blocks of space in 2013 include: VISA moving into 173,530 square feet at Research Park Plaza Bldg. III; Drilling Info, Inc. moving into 65,106 square feet at The Terrace 6; and SHI International Corp moving into 50,747 square feet at Barton Skyway I


Rental rates ended the fourth quarter at $27.94, an increase over the previous quarter


A total of one building delivered to the market in the quarter totaling 1,805 square feet, with 1,946,515 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 11.5% from the previous quarter, with net absorption positive 25.62 million square feet in the fourth quarter. Average rental rates increased to $22.06, and 177 buildings delivered to the market totaling more than 11.7 million square feet


Print Article opens in new window