Q2 2011 reports are out and the Austin Office Space trend continues. Vacancy rates continue to decrease and office rental rates continue to increase. If your business space is approaching lease expiration and you are considering renewing the lease OR you are interested in leasing new space now is the time to begin researching suitable options and locking in a deal. You have heard all the Austin accolades, the market is getting stronger, and companies are on the move. As landlords gain more confidence in the market and office inventory decreases expect Austin office rental rates to continue to rise and lease concessions (e.g. free rent, TI allowances, etc.) to dry up.
Vacancy rates at the end of Q32010 were 14.3%. At the end of Q2 2011 they were 13.3%. Average Office Rental Rates (all classes) at the end of Q1 2011 were $24.47 SF. At the end of Q2 2011 they were $24.76 SF. Other Average Office Lease Rates in Austin, TX Class A – $29.15 SF Class B – $21.09 SF Class C – $18.23 SF Downtown – $32.68 SF Suburban Areas – $23.43 SF Downtown Class A – $36.57 SF Suburban Class A – $27.22 If you are interested in learning about other Austin office updates feel free to give us a call.