As vacancy rates go down Austin office space rents are going up. This seems to be the trend as businesses expand and consumer confidence increases. According to an article in the Wall Street Journal occupied space and effective rents nationwide are increasing, both factors indicating the economy is turning around. Below is how Austin compares to the Nation:
Austin Office Space Nationwide Office Space Vacancy Rates 13.6% 17.6% Average Rental Rates$24.51 $22.20
There are many factors that indicate an economic recovery and office space occupancy and rental rate increases are among them. Below are some of the trends for the office space market in Austin, Texas according to the recent Costar report. Notice how we are trending towards a tighter office space market, which in turn means more companies are leasing and/or expanding their office space presence.
Austin Office Space Market Update First Quarter 2011 Fourth Quarter 2010 Third Quarter 2010 Second Quarter 2010Avg. Office Vacancy Rates (All Classes) 13.6% 14% 14.3% 14.6% Class A Office Vacancy Rates 17.6% 17.5% 18.3% 19.2% Class B Office Vacancy Rates 12.7% 13.6% 13.6% 13.8% Class C Office Vacancy Rates 6.8% 7.0% 6.9% 6.2% Avg. Downtown Office Vacancy Rates 10.2% 10.2% 9.8% 9.7% Avg. Suburban Office Vacancy Rates 14.3% 14.7% 15.2% 15.6% Avg. Rental Rates (All Classes) $24.51 $25.01 $24.82 $24.60 Avg. Class A Rental Rates $28.44 $28.82 $28.15 $27.96 Avg. Class B Rental Rates $21.19 $21.61 $21.56 $21.45 Avg. Class C Rental Rates $18.59 $18.40 Avg. Downtown Office Rental Rates $32.63 $32.50 Avg. Suburban Office Rental Rates $23.19 $23.71
If you are considering expanding, relocating, or leasing new space altogether now is the time to do it. Office Rental rates are only going to go up. Lock in your rates now!