Cushman & Wakefield's 1Q 2015 Austin Office ReportCushman & Wakefield's 1Q 2015 Austin Office Reporthttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=11152015-05-05T12:48:00Z2015-05-05T00:00:00Z

AUSTIN - As of February 2015 the Austin MSA’s unemployment rate of 3.4 percent is amongst the lowest in the top 50 largest metropolitan areas in the United States, according to Cushman & Wakefield's first quarter 2015 report.

A total of 753,514 sf of direct absorption was reported for the entire Austin market during 1Q 2015.

Such strong absorption can be attributed to the large amount of preleasing activity and subsequent deliveries of both the Seaholm Power Plant redevelopment and Colorado Tower.

Large tenants occupying these projects include: Parsley Energy (135,700 sf), Atlassian (48,303 sf) and Scott Douglas & McConnico (40,011 sf) in Colorado Tower and athenahealth (103,000 sf) and UnderArmour (35,300 sf) at the Seaholm Power Redevelopment.

Low vacancy rates, high absorption figures and an extremely active office market continue to push asking rates in the upward direction. The average full service overall rental rate was recorded at $32.78 per sf for 1Q 2015, 11.8 percent higher than that of the 4Q 2014 rate of $29.31 per sf.

New construction activity still continues to be a dominant force in the Austin office market. The CBD alone had almost 1 million sf completed during 1Q 2015.

It is expected that record low vacancy rates will be observed and that new historically high rental rates will be posted throughout the Austin market in the remainder of 2015.

Austin Office 1Q 2015
Submarket Inventory Overall
YTD Direct
YTD Overall
Overall Wtd.
Avg. All
Class Gross
Rental Rate*
CBD 9,339,913 6.0% 739,404 691,799 364,441 347,593 $43.84
Suburbs 35,620,641 9.4% 2,796,056 256,973 389,703 465,593 $30.92
Austin total 44,960,554 8.7% 3,535,460 948,772 753,514 822,336 $32.78

*Rental rates reflect asking $PSF/year

Click to view the full Austin Cushman & Wakefield 1Q 2015 Office report.

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