Colliers: Austin office market 2Q 2014

AUSTIN – Austin has more than 2.4 million sf of office space under construction and seven new buildings were completed in second quarter 2014, according to the Colliers International.

Over 188,000 sf of new office inventory was delivered during 2Q 2014, bringing year-to-date delivered inventory to 587,657 sf.

Citywide vacancy stood at 10.7 percent in 2Q 2014, down from 11.6 percent in 2Q 2013.

Of the seven buildings totaling delivered in 2Q 2014, the most notable delivery was the Seaholm Power Plant Building, which is 117,000 sf and is now 97 percent leased to Athena Health care.

Austin’s office market posted 85,623 sf of positive net absorption in 2Q 2014, pushing year-to-date 2014 net absorption to positive 375,246 sf.

The citywide average rental rate increased from $28.33 per sf to $28.59 per sf over the quarter and from $26.53 per sf to $27.77 per sf over the year.

According to local economists, 2014 job growth will remain strong with 68,000 to 72,000 new jobs forecasted for the year. Austin’s unemployment rate fell to 4.1 percent from 4.6 percent in 2Q 2013.

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