Austin Office Market for Q2 2019

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-marketAustin Office 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.