AUSTIN – The local office market began to show signs of softening at the beginning of 2020.
Absorption increased to 612,694 sf, but the drop in triple-net asking rates and OPEX costs caused the average asking rate to decrease from $38.89 to $36.64 quarter over quarter.
Overall vacancy increased 20 basis points to 10.9 percent.
Development activity remained strong with 6.9 million sf under construction. Last quarter, 474,238 sf came to market.
According to CBRE, COVID-19 is leading the U.S. economy into a recession, however, office-using employment may be less negatively affected than in recent recessions.
The Real Estate Center has more office news for Austin-Round Rock:
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