Austin Office Market | Q2 2016
Austin’s office market has been up on the upswing since 2012. However, Austin’s office market is now experiencing negative occupancy. The actual figures are approx -24,000SF of negative occupancy in Q2 2016. Lease rates have had small changes for the most part in low vacancy sub-markets such as Downtown Austin.
Here is a quick review, lease rates for offices in Austin did not move much , only up +.9% to $34.65 psf per yr. The largest move was in Class A office space in the downtown area are coming in at an increase at approximately 2.7% to a whopping $47.31 psf per yr. Suburban Class A office lease rates only moved up on average $0.03 cents per sf per yr to $35.74 psf per year. Current vacancy is coming in overall at 12% which is up from the last quarter by 1% point.
Indicators for Q2 2016
Indicators are as follows:
Vacancy down, Occupancy down, New Construction down , Under Construction down
Offices for Sale Overview Q2 2016
The current trend for Austin offices for sale is showing an increase in sales asking prices of 8% , compared to last years asking prices there is a +31% increase in asking prices, coming in at averages of $237 per square foot.