Austin office occupancy rates, rents riseAustin office occupancy rates, rents risehttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=68042013-07-17T07:06:00Z2013-07-17T00:00:00Z

AUSTIN - The area office market registered a strong showing in second quarter, with occupancies and rents for top-tier space continuing upward.

The occupancy rate for top-tier space was 88.4 percent, up from 85.4 percent in the same quarter last year, according to Oxford Commercial. Rents for Class A space averaged $31.36 per sf, up from an average of $29.37 in the year-ago quarter.

In the Austin region as a whole, the occupancy rate for all classes of office space also stood at 88.4 percent — the highest level since early 2001.

“We are getting back to the level Austin commercial real estate was at before the recession,” said Charlie Hill, a partner with Oxford.

Job growth helps fuel demand for office space. Austin gained 31,400 jobs in the 12 months that ended in May, an increase of 3.8 percent, according to the Texas Workforce Commission.

The major news coming out of the quarter is the new office construction that has finally returned to Austin, according to commercial real estate services firm CBRE.

More than 830,000 sf of space was under construction as the quarter ended, according to CBRE. There has not been that much in the pipeline since third quarter 2008, when 1.7 million sf was underway.

In downtown Austin alone, three projects — Colorado Tower, IBC Bank Plaza and office space planned as part of the mixed-use redevelopment of the former Seaholm Power Plant — will add more than 700,000 sf of new inventory, CBRE said.

Read more at the Austin American-Statesman.

Austin American-Statesman
Austin-Round Rock
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