Publication

Austin 2018 Q4 Office Market Report

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LEASING DECELERATING

Tenants leased just under 900,000 sf, falling below 1.0 million square feet (msf) and the third consecutive quarter with a decrease. Deal volume totaled nearly 6.0 msf in 2018.

CLASS A AVAILABILITY RISES

Following a sharp decline in the third quarter, the region’s Class A availability rate rose by 50 basis points to 13.6%. The overall availability rate jumped by 70 basis points to 13.2% and has spiked by 130 basis points compared to year-end 2017.

RENT JUMPS

Class A asking rent for the entire region rose by 2.9% to $40.86. Class B and C asking rent averaged $30.39, a 7.9% spike from a quarter ago.

SALES DOWN

Office property sales during the first eleven months of 2018 totaled $1.2 billion, a 38% decrease compared to the same period of 2017.

"Apple’s $1-billion HQ2 expansion overshadowed any sting associated with being bypassed by Amazon. Austin was already Apple’s second-largest outpost domestically, the innovator will more than double its workforce and solidify its position as Austin's top employer."

Brad Hauser, Research Director
Research Respository | Austin 2018 Q4 Office Market Report

Publication

Austin 2018 Q4 Office Market Report

Image treatment

LEASING DECELERATING

Tenants leased just under 900,000 sf, falling below 1.0 million square feet (msf) and the third consecutive quarter with a decrease. Deal volume totaled nearly 6.0 msf in 2018.

CLASS A AVAILABILITY RISES

Following a sharp decline in the third quarter, the region’s Class A availability rate rose by 50 basis points to 13.6%. The overall availability rate jumped by 70 basis points to 13.2% and has spiked by 130 basis points compared to year-end 2017.

RENT JUMPS

Class A asking rent for the entire region rose by 2.9% to $40.86. Class B and C asking rent averaged $30.39, a 7.9% spike from a quarter ago.

SALES DOWN

Office property sales during the first eleven months of 2018 totaled $1.2 billion, a 38% decrease compared to the same period of 2017.

"Apple’s $1-billion HQ2 expansion overshadowed any sting associated with being bypassed by Amazon. Austin was already Apple’s second-largest outpost domestically, the innovator will more than double its workforce and solidify its position as Austin's top employer."

Brad Hauser, Research Director