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What’s going on in..
YTD net absorption
Under construction
Average asking rent (gross)
Concessions
MarketSize
LargestOffice Deal
TotalVacancy
For more information, please contact:
FUNDAMENTALSOVERVIEW Forecast
AVERAGE ASKING RENTSTOTAL VACANCY
OUTLOOK
exisglobal.com | [email protected]
MID-YEAR 2019
Chad Jewell| [email protected]| 512.633.7703
8.70%8.10% 7.80% 7.50%
8.20% 7.90%
2014 2015 2016 2017 2018 2019
20
30
40
50
2014 2015 2016 2017 2018 2019
ClassA ClassB
320K 9.2M110M
The Austin office space market continues to be one ofthe healthiest in the country. Job growth and absorptionremain strong, and developers continue to enter themarket. Nearly 4 million SF has been delivered in theAustin market over the past year, with nearly 5 million SFcurrently under construction. Vacancies are low andthere are very few big blocks of space on the markettoday. Even with all the new development, absorption iscurrently on pace with deliveries, and vacanciesare expected to be relatively stable in the near term.Healthy fundamentals have caused rents to grow at arecord pace throughout the market. Rent prices haveapproached 8% annual growth at multiple points buthave backed off more recently, registering about 4%over the past year.
1.7M
7.9M
$32.89
$3-5 TI per SF/YR, Limited Free Rent
• We predict rental rates to continue to rise throughoutthe next couple of years as demand stays strong andconstruction prices remain high.
• High construction prices and the long lease termsrequired by landlords for turnkey buildouts will continueto be a mismatch for the needs of start-up companiesthat are making their home in Austin.
• The next generation of high-growth businesses will beseeking shorter-term commitments and more flexibilitysimilar to what they have become accustomed to withpopular coworking options.
• Strong investor interest will continue in the market andnew developments will continue in the foreseeablefuture.
THE AUSTIN OFFICE SPACE MARKET