Northwest Austin office market strong: CBRE

AUSTIN – An increase in office building construction along with a low vacancy rate and high absorption indicate Northwest Austin continues to be a hotbed for commercial real estate activity so far in 2013.

CBRE’s 2013 third quarter office market report indicates that Austin has the lowest vacancy rate it has seen in 12 years. Northwest Austin’s vacancy rate, 11 percent, is the second-lowest in Austin, trailing only Southwest Austin, which has an 8.1 percent vacancy rate.

“Year-to-date, they are responsible for over 30 percent of the absorption in the entire city just in that Lakeline area, which is part of the far northwest submarket,” said Erin Morales at CBRE Group Inc.

Demand for office space has also driven development of three new projects in Northwest Austin.

Projects contributing to an increase in construction include two office projects at The Domain and construction at Champion Office Park. An expansion to office park Aspen Lake will soon begin, as well.