Austin office 4Q 2012: NAI REOC
AUSTIN – The Austin office market enjoyed a strong performance in fourth quarter 2012, punctuated by improved occupancy and increased rental rates.
Newly commenced leases and expansions generated 416,080 sf of positive net absorption in 4Q 2012, raising the year-end total net gain to 936,358 sf — “one of the strongest annual performances in the past decade,” says Kim Gatley of NAI REOC Austin.
The Austin office market closed the year with a citywide vacancy rate of 15 percent — down from 15.9 percent in 3Q 2012 and improved compared with 17.2 percent recorded at the end of 2011.
The average quoted rental rate for Austin area office space ticked up two cents from 3Q 2012 to reach $26.53 per sf per year — up sixty-five cents compared to 4Q 2011 for a moderate annual increase of 2.5 percent.
| Total Inventory | Total Vacant SF | Vacant | YTD Absorption | Avg. Quoted Rent Rate ($/SF/YR) | |
| CBD | 8,745,619 | 935,691 | 10.7% | 239,482 | $33.27 |
| Central | 2,704,619 | 673,414 | 24.9% | 2,344 | $23.82 |
| North | 6,136,781 | 871,980 | 14.2% | 106,680 | $23.57 |
| Northwest | 10,604,089 | 1,928,097 | 18.2% | 471,911 | $24.64 |
| Far Northwest | 352,896 | 136,079 | 38.6% | 58,003 | $23.01 |
| East | 1,825,984 | 320,083 | 17.5% | 95,980 | $16.34 |
| South | 2,290,506 | 263,806 | 11.5% | 63,161 | $23.01 |
| Southwest | 8,645,448 | 1,053,716 | 12.2% | -102,003 | $28.08 |
| Round Rock | 1,188,418 | 197,180 | 16.6% | 800 | $22.71 |
| Totals | 42,494,360 | 6,380,046 | 15.0% | 936,358 | $26.53 |
Read more NAI REOC Austin.
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