REOC Austin office market 4Q 2014
AUSTIN – A construction boom is underway in the Central Texas office market, according to REOC Austin’s fourth quarter 2014 report.
“Twenty major office projects totaling roughly 3 million sf are currently pushing through the development pipeline,” says Kim Gatley, Senior Vice President and Director of Research for REOC Austin.
By the close of 2015, the Austin office market will boast an inventory of approximately 46 million sf — an increase of nearly 7 percent.
Many projects are reporting strong pre-leasing activity, such as Colorado Tower, reportedly 95 percent pre-leased already. In fact, buildings currently under construction are closing in on a pre-leasing rate of nearly 40 percent.
Vacancy rates may fluctuate as new projects come online but area job growth will continue to translate into demand for office space.
| Submarket | Total Inventory | Vacancy | YTD SF Absorp. | Avg. Quoted Rent Rate |
| CBD | 8,550,031 | 9.0% | 267,487 | $36.52 |
| Central | 2,246,769 | 12.5% | 77,898 | $25.22 |
| North | 1,619,764 | 14.6% | 103,864 | $20.07 |
| Northwest | 13,414,009 | 11.6% | 269,385 | $28.19 |
| Far Northwest | 3,532,895 | 8.9% | 180,161 | $23.20 |
| Northeast | 1,855,269 | 12.5% | 21,472 | $18.26 |
| South | 1,688,035 | 4.3% | 9,646 | $27.10 |
| Southeast | 915,462 | 12.7% | 35,704 | $21.29 |
| Southwest | 8,464,371 | 7.5% | 200,524 | $29.13 |
| Round Rock | 884,716 | 10.8% | 49,965 | $22.56 |
| Totals | 43,171,321 | 10.0% | 1,216,106 | $27.24 |
Source: REOC Austin
For other commercial reports, see Office under Austin Market Research.
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