Austin Office Market Q3 2019 | Summary report
Austin’s office market Q3 2019 continues to see strong demand moving into the 4th quarter of 2019. Vacancy rates have gone up approx 1% point, however it is a bit skewed due to a large company vacating their campus adding over 1M square feet of space to office inventory available. Austin is set up to have a banner year for offices , lease rates have climbed to highs of just under $39.00 per square foot overall. Lower lease rate deals are still available.
New office market deliveries for Q3 2019 remain a bit light, three new projects added an additional 240K square feet of office space.
Office Market Lease Rates for Q3 2019
- Full Service Lease rates increased over $1.00 per square foot to just under $40 psf per yr.
- NNN Expenses climbed to approx $11 per square foot per year, up +$0.22 cents per square foot per month
- 3 New office properties were built and pre-leased, 50% of the office construction has been pre-leased in Austin.