| Tech sector woes put pressure on major office markets | Tech sector woes put pressure on major office markets | https://www.recenter.tamu.edu/news/newstalk-texas/?Item=29177 | 2023-05-23T05:00:00Z | 2023-05-24T14:00:00Z | SANTA BARBARA, Calif. – CommercialEdge’s May U.S. office report examines current market conditions, including the challenges fueled by weak demand and rising vacancies, particularly in tech-driven cities.
As one of the growing tech hubs in recent years, Austin is also feeling the effects of the tech pullback: The metro's vacancy rate increased 5.9 percent year-over-year (YOY) in April, reaching 22 percent. Key findings from the report:
Austin led the nation in development on a percentage-of-stock basis, with underway projects representing 6.7 percent of its existing inventory. Miami still led the South in terms of prices, with asking rents coming in at $46.60/sf.
Washington, D.C. and Houston led the South in sales volume, with $509M and $466M in closed office deals, respectively.
The average U.S. office listing rate stood at $38.23/sf, rising 2.3 percent YOY.
Up 100 basis points YOY, the national vacancy rate was 16.7 percent. Under-construction office space reached 118.2M sf nationwide, accounting for 1.8 percent of the total stock.
| CommercialEdge
| Austin-Round Rock
| Office
| https://www.commercialedge.com/blog/national-office-report/ | | | | Read more at {Source} |
