The Austin office space market continues to be buoyed by job & population growth. As more jobs are created and more people move into the Austin area occupancy rates and office rental rates continue to rise. We are seeing more outside companies move here as well as technology companies expanding.
This is the hottest market a lot of agents have seen in a long time. Office space demand is expected to remain strong throughout 2013 and 2014 so I would expect to see a few new office buildings be brought to market sooner than later.
Suggestions for a lot of companies is to determine your current and future space needs and negotiate what you will need later now. At the rate space is being leased you want to ensure that you have options to expand within your building.
Current stats on Class A space in Austin:
- Overall average class A occupancy rates in Austin are 87.3%.
- Average rental rates for class A space are $31.14 sf.