Texas office: Big four metros 4Q 2013 CBRE

TEXAS – The Texas office market concluded 2013 on a favorable note, both for the quarter and for the year, according to a report from CBRE. Positive net absorption remains a widespread theme for the major metropolitan areas of Austin, Dallas-Fort Worth, Houston and San Antonio, totaling about 9.5 million sf for the year in just the office market alone.

Office vacancy in Texas continues to be driven down by sustained positive absorption, fueled by prolonged demand in most of the state’s largest markets.

Total net absorption for fourth quarter 2013 was positive and exceeded 2 million sf. This is a reduced amount since last quarter, but boosts the annual total to nearly 10 million sf — the highest year of annual absorption since 2006.

The quad-market average for quoted lease rates witnessed another uptick in 4Q 2013, averaging $23.11 per sf and up by $0.33 per sf from the previous quarter. Asking rates are expected to continue rising trend while supply is still constrained due to the slow churn of new speculative inventory.

The construction pipeline picked up momentum once again over 4Q 2013, expanding by almost 4.5 million sf and exceeding 20 million sf in total projects actively under construction.

*Rentable building area

For CBRE’s report, see Texas Office: Big Four Metrosunder Austin, Dallas-Fort Worth, Houston or San Antonio Market Data Sources.