Austin Office Market for Q2 2019 | Summary
How did the Austin office market fair for Q2 2019? Positive signs were a part of the first quarter of 2019 are still in play with vacancy rates dropping below to a historic record of 9%. Lease rates have risen to historic highs , pre-leasing activity drove most of the occupancy.
- Large tenants and pre-leasing of approx half of new inventory driving the market.
- 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 on average coming in close to $40 psf per yr.
Austin unemployment remains low below 3%, employment growth is higher than the average of 6% coming in at 7.5%
Office Space and Vacancy- Highest vacancy sub-market
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 18-20%
- North Austin 11.6%
Office Lease Rate Highs (per year)
- Downtown Austin remains the highest cost area to lease office space, $57.00/psf for Class A property
- South Austin and East Austin come in 2nd with rates around $46.50 psf for Class A property
- Northwest Austin is third at $42 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.