Thanks to Austin’s job & population growth, quality of life and a bustling economy office space occupancy and rental rates continued their increase 2012. Occupancy rates for class A space are at their highest level since 2007 leveling off at around 87%. Average rental rates for class A space are $30.50 sf. 1.5 million sf fee of office space was leased in 2012, which is 50% more than the previous year AND the highest since 2000.
Available space is less prevalent due to existing Austin companies expanding as well as other companies expanding and/or relocating into the Austin area. Because of all the absorption new office building construction projects have begun.
For those companies who are considering leasing office space in Austin now is the time to plan your space needs to lock in rental rates and exansion space. Those who wait until the last minute may find themselves having to expand in noncontiguous space or relocating altogether.
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