Austin office rental rates growing with population

Austin’s population is growing faster than any other metro in the country, the firm says, and now rates in its central business district (CBD) are higher than other large metros including Chicago, Miami, and Los Angeles.

Vacancy rates are starting to fall, and there are about 350,000 sf set to deliver by the end of 2016 and 1.3 million sf coming in first quarter 2017.

Three buildings totaling 259,480 sf delivered in the third quarter, and 216,549 sf of that was preleased.

The citywide average rental rate increased by 7.3 percent from $36.02 to $38.68 per sf over the quarter. Class A rates in the CBD increased by 12.4 percent over the quarter to $50.90 per sf from $49.52 per sf. Overall suburban Class A rates also increased, from $33.69 to $35.20 per sf over the quarter.