Over the last few quarters Austin, Tx has experienced very strong job growth and a healthy economy. Because of that the demand for office space has increased. What does that mean to you? In a nut shell as office space becomes less available, rental rates will continue to increase.
Overall occupancy rates in Austin (for all classes A, B, C) average over 88%. This is a level that we have not seen since 2001. Average office lease rates Office lease rates in Austin (for all classes) are about $24 sf. For a complete list of average lease rates check out this page.
Job growth and a growing economy are great news for business owners and companies however not so great when it comes to leasing office space. Lack of available space and increasing rents is great news for landlords!
The good news is new construction of office buildings around Austin has begun or announced…………over 800,000 sf worth. When these are ready to lease this may help stabilize office space rents a little. That being said if you have a lease that will expire in the next year or two you might consider evaluating your current and future space needs now and if it makes business sense consider renewing your lease early!