Austin: Cushman & Wakefield Office 2Q 2015 Austin: Cushman & Wakefield Office 2Q 2015 https://www.recenter.tamu.edu/news/newstalk-texas/?Item=2012015-08-06T13:23:00Z2015-08-06T00:00:00Z

AUSTIN - For May 2015, the Austin MSA posted a 3.1 percent unemployment rate, the lowest of the largest 50 metros in the United States for another consecutive quarter, according to Cushman & Wakefield’s second quarter 2015 report.

A total of 327,660 sf of direct absorption was recorded for 2Q 2015. This brought the year-to-date total for 2015 to an impressive 1,081,174 sf of direct absorption. This YTD total for 2015 is 61.9 percent higher than the YTD direct absorption recorded at the end of 2Q 2014.

The total market posted an overall vacancy rate of 9.7 percent for 2Q 2015, marginally higher than the overall vacancy rate of 8.7 percent observed in 1Q 2015.

High demand, competition for vacant space and low vacancy rates continue to push full service (FS) market asking rates to historic highs. For 2Q 2015 the average FS rate for all building classes was $32.83 per sf, $3.62 per sf higher than the average FS rate in 2Q 2014.

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 remains higher than ever before. New construction continues to dominate the skyline, as many buildings are spoken for, prior to their respective completions.

Austin Office 2Q 2015
Submarket Inventory
YTD Direct
YTD Overall
Direct Wtd.
Avg. All
Class Gross
Rental Rate*
CBD 9,256,594 7.3% 692,404 411,162 417,214 $47.80
Suburbs 36,097,250 10.4% 2,295,420 670,012 845,489 $34.20
Total 45,623,844 9.7% 2,987,824 1,081,174 1,262,703 $36.41

*Rental rates reflect asking $/PSF/year.

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