REOC Austin office 3Q 2014
AUSTIN – Employment growth and an expanding economy continue to drive demand for office space, according to REOC Austin’s 3Q 2014 report.
According to the survey of nearly 42 million sf of Austin area office lease space, area properties experienced 337,467 sf of positive net absorption in 3Q 2014. The total gain was split between Class A properties, with 161,087 sf, and Class B properties, with 169,704 sf.
The Austin office market closed the quarter with a citywide vacancy rate of 9.0 percent, down compared to 9.7 percent in 2Q 2014 and 11.8 percent in 3Q 2013.
In all, the market has nearly 3 million sf of office space currently under construction. Roughly 725,000 sf is expected to come online in 4Q 2014 led by two downtown projects — IBC Bank Plaza (195,378 sf) and Seaholm Power Plant Building (113,063 sf).
The citywide average quoted rental rate climbed $0.72 to reach $26.06 per sf per year, up 2.8 percent from 3Q 2013.
| Submarket | Total Inventory | Total Vacant SF | Vacant | Avg. Quoted Rent Rate |
| CBD | 8,355,282 | 668,708 | 8.0% | $34.93 |
| Central | 2,246,769 | 216,659 | 9.6% | $25.10 |
| North | 942,488 | 184,453 | 19.6% | $19.17 |
| Northwest | 13,021,065 | 1,140,070 | 8.8% | $26.80 |
| Far Northwest | 3,532,895 | 334,858 | 9.5% | $24.37 |
| Northeast | 1,855,269 | 211,688 | 11.4% | $16.40 |
| South | 1,688,035 | 88,707 | 5.3% | $24.15 |
| Southeast | 915,462 | 119,054 | 13.0% | $19.09 |
| Southwest | 8,463,665 | 674,998 | 8.0% | $28.08 |
| Round Rock | 884,716 | 124,263 | 14.0% | $20.11 |
| Totals | 41,905,646 | 3,763,458 | 9.0% | $26.06 |
Source: REOC Austin
Click here to see the full 3Q report.
For more stats, look under Office in Austin Market Data Sources.
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