In downtown Austin there is over 750,000 sf of office space under construction. Historically when you have that much new office space being built you would expect the occupancy rate to decrease and more space to be available.
In this market that is not the case. Because of increased demand from tenants all the new office buildings have been preleased……..meaning there is no available space! Occupancy rates have actually increased! In the 2nd quarter of 2014 downtown Austin office occupancy rates were 88.2%. Over the next 15 months 5 office projects are scheduled to be completed, however 4 of them are over 90% occupied and the 5th is expected to be 100% leased by January.
- The 30 story Colorado Tower. It's scheduled to be completed in December and is already 95% leased.
- IBC Bank Plazais 92% preleased