Austin Office Market for Q1 2019 | Summary
How did the Austin office market fair for the first quarter of 2019? Positive signs for the first quarter of 2019 are still in play with vacancy rates dropping below 10%. Lease rates have risen to historic highs with an additional 5M square feet of office space added on.
- Large tenants are driving the demand for the most part
- Predictions of office occupancy are good for the rest of 2019
- OPEX (operational expenses) have increased along with lease rates increasing $0.12 cents psf per month
- Full Service rates are in the high $30’s
Austin employment grew close to 4% for the first quarter of 2019, however this is lower than the long term growth of 6%. Unemployment still remains relatively low and below the national average of 3.8%
Highest Vacancy areas for office space
Here is a quick snapshot of the highest vacancy areas in the Austin market, for more detailed information visit our vacancy data page.
- Northeast Austin – which includes Round Rock Overall vacancy rates are 17-18%
- Southeast Austin – 15%
Office Lease Rate Highs (per year)
- Downtown Austin remains the highest cost area to lease office space, almost $50.00/psf
- East Austin comes in second at $43 psf
- Northwest Austin is third at $37 psf
For more detailed information on current market office lease rates, you can visit our landing pages for specific square footage offices in the Austin Area.