Austin office rental rates reach 'high-water mark'Austin office rental rates reach 'high-water mark'https://www.recenter.tamu.edu/news/newstalk-texas/?Item=1532015-08-13T12:39:00Z2015-08-13T00:00:00Z

AUSTIN - Rental rates have reached a new high-water mark in the Austin market, according to a new report from Cushman & Wakefield | Oxford Commercial (CWOC).

“The Austin office market continues to operate in peak conditions. Office buildings are selling at historic prices, available spaces are quoting historic lease rates and occupancy rates remain higher than ever before,” Melissa Totten, associate vice president with CWOC, says. “New construction continues to dominate the skyline, as many buildings are spoken for, prior to their respective completions.”

The overall office vacancy rate declined to 9.7 percent, compared to 10.2 percent at the end of second quarter 2014.

The average full-service asking rate increased to $32.83 per sf, up 12.4 percent from this time last year. The CBD saw the greatest gains — growing to $47.80 per sf, up 10.6 percent from the end of 2Q 2014.

Asking rental rates are the highest rate CWOC has ever recorded since it started tracking the stats in the early 1990s.

The climb is attributed to 1.08 million sf being absorbed during the first half of 2015, soaring 61.9 percent since the end of 2014. The 1.08-million figure year compares to 667,901 sf absorbed in the first half of last year.

Click to see 2Q 2015 Cushman & Wakefield | Oxford Commercial’s Austin Office Snapshot.

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