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Austin Market Reports

Austin Office Market

Average Asking Rent (Price/SF) $34.49
Vacancy Rate (%) 10.5%
Net Absorption (SF) 569,361

 

After two quarters of negative absorption Austin's office market recorded 569,000 square feet of positive absorption in the third quarter of 2018. Leasing activity was tepid this quarter compared with prior quarters as 869,700 square feet of space was leased, roughly 60% below the 5-year average for the market. Leasing activity appeared to be trending downward with third-quarter leasing activity down approximately 36% from the average for the first half of the year.

Austin Industrial Market

Average Asking Rent (Price/SF) $10.18
Vacancy Rate (%) 6.4%
Net Absorption (SF) 384,735

The Austin industrial market saw a drop in vacancy rate during the third quarter of 2018. Market-wide, vacancy is 6.4%, and three-fourths of the submarkets continue to register vacancy below the market average. During the quarter, one new building totaling 132,850 square feet delivered. This means that nearly 1.3million square feet across 17 buildings has come to market during the calendar year, and 38 buildings with nearly 2.7 million square feet remain under construction. While the majority of these developments are smaller in scale, pre-leasing overall is lagging significantly, with nearly 75.1% of the square footage set to arrive without a tenant in place. This metric must be watched closely during the remainder of 2018 and into 2019 to ensure vacancy levels and rental rates during are not dramatically impacted.



Austin Office Market Report
3Q18
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Austin Industrial Market Report
3Q18
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