Austin office space: More supply, less demand? Guess againAustin office space: More supply, less demand? Guess againhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=29532014-09-26T07:45:00Z2014-09-26T06:30:00Z

AUSTIN - Even with nearly 750,000 sf of office space under construction in downtown Austin, the area's occupancy rate is poised to increase under intense demand from tenants in a variety of industries.

"When all the buildings that are under construction deliver, the occupancy rate will actually go up, because of the preleasing in the buildings," said Charles Heimsath, president of Austin-based Capitol Market Research.

"That may be an unprecedented situation and shows the tremendous strength of the downtown market."

The occupancy rate in downtown Austin was 88.2 percent in second quarter 2014, up from 84.4 percent two years ago, according to CBRE.

Of five office projects scheduled for completion over the next 15 months, four are more than 90 percent leased, and the developer of the fifth project expects to be fully leased by January 2015. That means the buildings will likely add little to the supply of available space upon completion.

Wall Street Journal
Austin-Round Rock
http://online.wsj.com/articles/austin-office-space-more-supply-less-demand-guess-again-1411507470Read more at {Source}

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