The Q2 2012 Austin office reports are out and the Austin market remains strong. Vacancy rates for the Austin area are now 11%, down from 11.3% in Q1 2012 and 13.5% this time last year. Average office lease rates in Austin, Tx climbed to $25.19 psf/yr, making this the highest rates have been since 2007. A total of eight office buildings were delivered to the Austin office market and at the end of the quarter 260,651 sf of office product remains under construction. The downtown and suburban areas have become hotbeds for activity and constructions plans for both areas include the proposition of 2 new downtown office towers and new suburban site plans that total over 10 million sf of new office product. Year-to-date net absorption has reached 875,000 sf, compared to 1,000,000 sf in the entire 2011 year.
Our advice to you is to begin your search for office space early in order to protect yourself from the trend of rising rental rates and in order to maximize your negotiation power with landlords as vacancy rates continue to decrease. By beginning your search early you will not only save money on your next lease, but minimize your downtime between moves as well by being more prepared.
Other Average Office Lease Rates in Austin, TX:
- Class A- $29.94
- Class B- $22.26
- Class C- $17.94
- Downtown- $33.80
- Suburban Areas- $27.67
- Downtown Class A- $37.22
- Suburban Class A- $27.67
If you are interested in learning about other Austin Office Lease information give us a call at 512-861-0525