Austin office occupancies, rents rise in 2Q 2014Austin office occupancies, rents rise in 2Q 2014https://www.recenter.tamu.edu/news/newstalk-texas/?Item=36132014-07-15T07:47:00Z2014-07-15T07:20:00Z

AUSTIN - The Austin-area office market remained on solid footing in second quarter 2014, with rents and occupancies for Class A space higher than 2Q 2013, according to Cushman & Wakefield  | Oxford Commercial.

The occupancy rate for top-tier office space in 2Q 2014 was 89.4 percent, up from 88.4 percent from 2Q 2013. Rent for that space averaged about $33 per sf in 2Q 2014, up 4 percent from just over $31 per sf a year ago.

White-collar job growth drives demand for office space, and the Austin area saw more than 31,000 new jobs created in the 12 months that ended in May, according to the Texas Workforce Commission.

About 1.6 million sf of new office space is expected to hit the market by the end of 2014, with that number expected to reach 2.5 million sf by the end of 2015.

Downtown is one of the region’s hottest sectors. Nearly 900,000 sf of new office space will be coming online in five downtown buildings within a year, and “surprisingly, almost 80 percent of this new supply has already been leased,” said Ryan Bohls, a vice president in Austin with JLL.

Much of that leasing activity is due to companies that are relatively new to Austin, including Athenahealth, Dropbox, Parsley Energy and Atlassian.

For more on the Austin office market, see Austin Market Data Sources.

Austin American-Statesman
Austin-Round Rock
http://www.mystatesman.com/news/business/austin-office-occupancies-rents-rise-in-2nd-quarte/ngdhq/#073fd9f4.3380261.735428Read more at {Source}

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