Austin office market ends 2013 on strong note: OxfordAustin office market ends 2013 on strong note: Oxfordhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=53552014-01-06T09:39:00Z2014-01-06T06:30:00Z

AUSTIN - The Austin-area office market ended 2013 on a high note, with average rents for top-tier space hitting an all-time high and the occupancy rate for that space reaching near-record levels, Oxford Commercial said.

The upward trend is expected to continue in 2014, local office brokers said Friday.

In its fourth quarter report, Oxford said Class A office space in Central Texas was almost 89 percent occupied by year-end, the highest level since 2006, before the last recession. Rents for top-tier space averaged $32.47 per sf per year — the highest on record in the market.

Office market figures are one barometer of how the economy is faring, since rents and occupancies are tied to white-collar job growth. In Austin, the economy continues to be the envy of many cities for its job creation.

Austin-based economist Angelos Angelou has predicted local employers will create about 29,000 new jobs in 2014.

“I think it’s going to be a good year,” said Andrew Smith, director of leasing for Parkway Properties Inc.

Parkway became Austin’s dominant downtown landlord in late December, when the Orlando-based firm closed on its purchase from Los Angeles-based Thomas Properties Group of five Class A downtown office buildings that include Frost Bank Tower.

Smith said Austin’s central business district continues to be a magnet both for new companies coming to town and existing companies relocating from the suburbs.

However, Rick Whiteley, a partner with Oxford Commercial, said that in the downtown market, competition from new office buildings under construction — including Colorado Tower at Third and Colorado streets, where the Blum Firm last week became the latest tenant to sign on, and IBC Bank Plaza at West Fifth and Nueces streets — “will serve to moderate the rate of growth we’ve seen over the past few years.”

Read more at the Austin American-Statesman.

Austin American-Statesman
Austin-Round Rock
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