Over the past year Austin office space vacancies have slightly increased due to a few new office space developments, however that hasn’t stopped office rental rates from increasing as well. The Austin office space market has been operating in peak conditions and there are no signs of it slowing down. With as much new office space construction going on you would think that we would see a little decrease in rental rates, however most of those buildings are getting 95% to 100% preleased before they are even completed.
In the Austin market area, All Classes average office rental rates are up to $32 to $33 sf which is over $3 sf more than this time last year. Class A office space rents in he Austin market area are hovering around $37 sf. If you want to lease office space in Downtown Austin get your checkbook out and be prepared to pay$47 to $56 Sf (Frost Bank Tower).
It’s getting harder and harder to find space so make sure you plan and prepare ahead of time. If you need any help finding space don’t hesitate to give us a call.