The Austin office market remains fast, competitive, and expensive. Vacancy increased slightly in Q2 2018 while absorption decreased. Rental rates are trending upward, especially in the CBD and Eastside, due to high demand and rising construction costs. Several large leases were signed during the quarter, and more large deals are anticipated as new developments deliver space over the next two years.
Tech companies continue to drive growth in Austin's tight office market. Net absorption was 528,811 SF in Q2 2019 despite increasing vacancy. Rents rose to $35.74/SF citywide with several submarkets exceeding $50/SF. New supply is under construction but largely pre-leased, indicating demand will remain strong through 2020 barring economic slowdowns.
Austin's office market finished 2017 strongly, with Q4 net absorption of 319,028 SF bringing total 2017 absorption to 886,556 SF. Vacancy decreased to 11.5% as demand remained high, especially in the North/Domain submarket. Rental rates increased slightly citywide to $34.92/SF and more significantly in the CBD, where Class A rates rose to $50.97/SF. With limited new supply coming online, the tight market is expected to continue into 2018.
Austin's office market saw a large increase in sublease space availability in Q2 2020, with over 100,000 square feet added from several large companies. The sublease availability increased over 40% compared to the start of Q2, reflecting the economic challenges brought on by the COVID-19 pandemic. However, construction continued on projects like Google and Indeed's downtown towers, and Tesla announced plans for a new factory in Austin, showing signs that Austin remains an attractive market. Vacancy rates increased overall to 13.6% as net absorption turned negative, but some submarkets did see positive absorption.
Austin's office market continues to see large leases for even larger developments. In Q1 2019, Austin reported 1,082 SF of negative net absorption, with major losses in the Class A Northwest submarket. However, the Southeast submarket saw positive absorption due to a large lease. Large leases signed in Q1 included Indeed taking 183,911 SF and Google leasing 150,000 SF. Austin's vacancy rate increased slightly to 10.6% as rental rates decreased to an average of $35.72/SF. Development remains active with over 3 million SF under construction, over half of which is pre-leased.
Austin’s office market continues to deliver as
we hit the midyear mark
Boots On The Ground Commentary by David Bremer
Our “Boots on the Ground” view point is the voice of our experts, who
have broken down the market data and compared it to what they are
seeing for themselves. This is their take on what the numbers actually
mean for the Austin office market.
There are two mistruths I’ve heard perpetuated by the real estate
community, including myself once or twice, over the past year: (1)
This occupancy and these rates can’t last forever, and (2) MoPac
construction should be done soon.
The Austin office market rebounded sharply in the 2nd quarter,
with extremely high Net Absorption of almost 600,000 RSF.
Vacancy remained relatively flat, however rates continue to trend
higher.
http://bit.ly/Q2_2017_Austin_Office_Page
The Austin office market closed out 2019 with continued strong growth and development. Vacancy increased slightly to 11.9% as net absorption was negative and new construction increased. Rental rates also increased, with Class A CBD rents reaching $53.33 per square foot. The market remains strong with 7.15 million square feet under construction and major developments planned in downtown and the surrounding areas.
The Austin office market saw negative net absorption in Q3 2020, with vacancy rates increasing to 15.2%. Rental rates remained relatively stable but concessions are increasing. While construction remains high and demand is decreasing in the short term, Austin is still attracting companies and is well positioned to recover more quickly than other markets due to its business environment and quality of life.
Tech companies continue to drive growth in Austin's tight office market. Net absorption was 528,811 SF in Q2 2019 despite increasing vacancy. Rents rose to $35.74/SF citywide with several submarkets exceeding $50/SF. New supply is under construction but largely pre-leased, indicating demand will remain strong through 2020 barring economic slowdowns.
Austin's office market finished 2017 strongly, with Q4 net absorption of 319,028 SF bringing total 2017 absorption to 886,556 SF. Vacancy decreased to 11.5% as demand remained high, especially in the North/Domain submarket. Rental rates increased slightly citywide to $34.92/SF and more significantly in the CBD, where Class A rates rose to $50.97/SF. With limited new supply coming online, the tight market is expected to continue into 2018.
Austin's office market saw a large increase in sublease space availability in Q2 2020, with over 100,000 square feet added from several large companies. The sublease availability increased over 40% compared to the start of Q2, reflecting the economic challenges brought on by the COVID-19 pandemic. However, construction continued on projects like Google and Indeed's downtown towers, and Tesla announced plans for a new factory in Austin, showing signs that Austin remains an attractive market. Vacancy rates increased overall to 13.6% as net absorption turned negative, but some submarkets did see positive absorption.
Austin's office market continues to see large leases for even larger developments. In Q1 2019, Austin reported 1,082 SF of negative net absorption, with major losses in the Class A Northwest submarket. However, the Southeast submarket saw positive absorption due to a large lease. Large leases signed in Q1 included Indeed taking 183,911 SF and Google leasing 150,000 SF. Austin's vacancy rate increased slightly to 10.6% as rental rates decreased to an average of $35.72/SF. Development remains active with over 3 million SF under construction, over half of which is pre-leased.
Austin’s office market continues to deliver as
we hit the midyear mark
Boots On The Ground Commentary by David Bremer
Our “Boots on the Ground” view point is the voice of our experts, who
have broken down the market data and compared it to what they are
seeing for themselves. This is their take on what the numbers actually
mean for the Austin office market.
There are two mistruths I’ve heard perpetuated by the real estate
community, including myself once or twice, over the past year: (1)
This occupancy and these rates can’t last forever, and (2) MoPac
construction should be done soon.
The Austin office market rebounded sharply in the 2nd quarter,
with extremely high Net Absorption of almost 600,000 RSF.
Vacancy remained relatively flat, however rates continue to trend
higher.
http://bit.ly/Q2_2017_Austin_Office_Page
The Austin office market closed out 2019 with continued strong growth and development. Vacancy increased slightly to 11.9% as net absorption was negative and new construction increased. Rental rates also increased, with Class A CBD rents reaching $53.33 per square foot. The market remains strong with 7.15 million square feet under construction and major developments planned in downtown and the surrounding areas.
The Austin office market saw negative net absorption in Q3 2020, with vacancy rates increasing to 15.2%. Rental rates remained relatively stable but concessions are increasing. While construction remains high and demand is decreasing in the short term, Austin is still attracting companies and is well positioned to recover more quickly than other markets due to its business environment and quality of life.
The document provides an overview of the Austin office market in Q1 2020. It summarizes that the market saw 35,453 SF of negative net absorption in Q1, with large negative absorption in Class A buildings. Vacancy increased to 13.0% citywide. Rental rates increased slightly to $35.93 on average. The report also discusses the impacts of COVID-19 on the market and expectations for Q2 2020.
Austin's office market is leveling out after a period of high growth and rental rate increases. Net absorption was steady in 2016 around 1 million square feet absorbed, while average rental rates and vacancy remained largely unchanged. New construction is slowing down with over half of current space under construction already preleased. Sublease space is increasing due to new co-working options and a changing workforce seeking flexible space near amenities. The market is expected to remain stable in the next 12-18 months barring major changes from large tech firms or a slowdown in the tech sector.
JLL Louisville Industrial Outlook - Q4 2016Ross Bratcher
New construction, tenant demand keep rates at high levels. Employment challenges meet creative solutions, new political landscape. Leasing velocity remains true to historic size segments in 2016.
The document provides an analysis of the Austin office market in Q3 2019. It finds that the market saw negative net absorption of 1.1 million square feet, driven mainly by increased vacancies in Class A buildings. Vacancy rates increased across the city to 11.5% overall. Rental rates declined slightly. Absorption was positive in some suburban submarkets. Over 5.7 million square feet of new office space remains under construction, with over 2.6 million square feet already pre-leased. The report concludes that major tech employers continue to expand in Austin, driving the market's growth despite current challenges.
With demand rising steadily and supply running low in Columbus, now is a great time to be a landlord. As a tenant, with the introduction of many "big" players in the Columbus market and the third party vendors that follow, now is the time lease or become an owner/occupier before the market fully adjusts to today's supply and demand of industrial space. Let the Colliers Columbus Industrial Team add value to your next transaction with our proven industry knowledge and systematic approach- contact me with any questions regarding our market report or how we can be of assistance in achieving your business' goals.
Citywide positive net absorption in Austin reached an all-time high in Q3 2015 of 871,272 square feet. Rental rates in the CBD increased by 7.5% over the quarter, with average rates reaching $44.60 per square foot, as demand for office space in the CBD remained strong despite new construction. Absorption was strongest in the northwest, southwest, and CBD submarkets, with major leases signed by companies such as Electronic Arts, Oracle, and Cirrus Logic.
Vacancy at the top of the market is slowly moving upward, although levels remain below historic norms. New supply and givebacks upon relocation due to efficiency have begun to and will continue to result in rising vacancy.
Houston's strong job growth and healthy economy boosted office leasing activity in Q3 2012. Leasing activity reached 2.6 million SF, pushing the year-to-date total to over 9.75 million SF. Houston's overall vacancy rate fell to 14.2% as net absorption reached 767,000 SF in Q3. With continued expansion in the energy industry and a strong housing market, Houston's economy is expected to remain healthy.
Houston's office market saw small improvements in Q1 2019, with vacancy rates declining slightly and positive net absorption of 724,000 SF. Leasing activity decreased from the previous quarter while rental rates increased. Job growth in Houston increased by 2.4% over the year, with gains in sectors like mining support, durable goods manufacturing, and construction.
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- Austin's office market experienced negative absorption of 24,603 SF in Q2 2016, the first negative absorption since 2012, driven by decreases in the CBD, North/Domain, Northwest, and Southwest submarkets.
- Vacancy rates increased both citywide and in the CBD and suburban areas. The average rental rate increased slightly to $34.65 per SF. Rents in the CBD increased to $49.52 per SF.
- Three buildings totaling 196,463 SF delivered in Q2, with absorption rates of 91.9% upon delivery. The largest delivery was a 74,804 SF building in North/Domain.
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Colliers toronto office leasing market report 2014Chris Fyvie
The document provides a market report on office space in the Greater Toronto Area for Fall 2013. Some key points:
- Vacancy rates continued to decline in the third quarter of 2013, reaching record lows of 5.8% in the GTA overall and 3.9% downtown.
- With significant new development planned, vacancy rates are expected to rise to near double digits by 2016-2017, providing an opportunity for tenants to renegotiate leases.
- Downtown Toronto demand remains strong with a slight decline in vacancy. The financial core submarket also saw steady demand.
- Midtown and GTA North markets also saw low vacancy rates and positive absorption in the third quarter. The GTA
The document summarizes Houston's office market performance in Q1 2018. Key points include:
- The overall vacancy rate increased to 20.1% due to large companies vacating space after layoffs and mergers, resulting in 1.5 million square feet of negative absorption.
- Sublease availability increased back above 9.0 million square feet due to space returned to the market during the energy downturn.
- Rental rates saw small decreases across classes and markets, with the average Class A rate at $34.91 per square foot.
- Leasing activity decreased 32% from the previous quarter while investment sales dropped slightly over the year.
E M E A F P R M O S C O W O F F I C E S M V H1 09Igor Bevzenko
The Moscow office market saw a 32% decline in take-up during the first half of 2009 compared to the same period in 2008. For the first time, the vacancy rate for Class A office space exceeded the rate for Class B space, at 27% and 19% respectively. Rents fell over 50% on average during the first half of the year. Over 1.2 million square meters of new office space was delivered, increasing the overall vacancy rate, and rents are expected to continue declining for the rest of the year due to additional new supply and stable demand.
Absorption in Memphis remains strong, with 1.6 million square feet absorbed in Q1 2017. Vacancy declined to 6.2% as demand outpaced new supply. Leasing activity was concentrated in the Southeast and DeSoto County submarkets. Over 3 million square feet of new projects are expected to deliver by year's end, with 76.1% being speculative developments. Investment in Class B space increased, with a $33.3 million portfolio purchase indicating a potential shift in investor focus. Fundamentals are expected to remain positive for landlords as rents rise steadily throughout the year.
Houston's office market saw positive absorption of 84,750 SF in Q2 2018, rebounding from negative absorption in Q1 2018. Vacancy rates decreased slightly to 21.7% overall but increased year-over-year. Large companies like Occidental Petroleum are downsizing space and subleasing hundreds of thousands of square feet. Rental rates have remained relatively stable while leasing activity decreased compared to prior periods.
The document summarizes Houston's industrial real estate market performance in Q1 2020. It notes that vacancy increased to 7.9% from 6.9% in Q4 2019. Net absorption remained positive at 3.2M SF despite economic challenges from low oil prices and COVID-19. Rental rates increased slightly. The market faces short term uncertainty from the pandemic's economic impact, but the industrial sector is expected to outperform other commercial real estate over the long run due to growth in e-commerce, inventory stockpiling, and potential supply chain changes.
Austin's office market saw positive net absorption of 163,796 SF in Q4 2018, bringing the year-to-date net absorption to 29,762 SF. Vacancy rates declined to 10.3% as average rental rates increased to $36.19/SF. A major development was Apple's announcement of a 3,000,000 SF campus in North Austin, which will boost the submarket and Austin's economy. New construction is booming, with 4.26M SF under construction and expectations of continued growth in 2019.
Q4 2015 Austin Office Market Research & Forecast ReportLisa Bridges
- Austin's office market posted the highest positive net absorption ever recorded in Q4 2015 at 902,046 square feet. Five new buildings totaling 676,904 square feet delivered, with 1.579 million square feet currently under construction.
- The citywide average rental rate increased slightly to $30.71 per square foot, while Class A CBD rental rates rose 1.4% to $44.36 per square foot. Vacancy rates continued declining, with the CBD rate falling to 6.8%.
- Austin's unemployment rate of 3.3% remains below state and national averages, and job growth in Austin increased 3.9% annually, significantly higher than state and national averages.
The document provides an overview of the Austin office market in Q1 2020. It summarizes that the market saw 35,453 SF of negative net absorption in Q1, with large negative absorption in Class A buildings. Vacancy increased to 13.0% citywide. Rental rates increased slightly to $35.93 on average. The report also discusses the impacts of COVID-19 on the market and expectations for Q2 2020.
Austin's office market is leveling out after a period of high growth and rental rate increases. Net absorption was steady in 2016 around 1 million square feet absorbed, while average rental rates and vacancy remained largely unchanged. New construction is slowing down with over half of current space under construction already preleased. Sublease space is increasing due to new co-working options and a changing workforce seeking flexible space near amenities. The market is expected to remain stable in the next 12-18 months barring major changes from large tech firms or a slowdown in the tech sector.
JLL Louisville Industrial Outlook - Q4 2016Ross Bratcher
New construction, tenant demand keep rates at high levels. Employment challenges meet creative solutions, new political landscape. Leasing velocity remains true to historic size segments in 2016.
The document provides an analysis of the Austin office market in Q3 2019. It finds that the market saw negative net absorption of 1.1 million square feet, driven mainly by increased vacancies in Class A buildings. Vacancy rates increased across the city to 11.5% overall. Rental rates declined slightly. Absorption was positive in some suburban submarkets. Over 5.7 million square feet of new office space remains under construction, with over 2.6 million square feet already pre-leased. The report concludes that major tech employers continue to expand in Austin, driving the market's growth despite current challenges.
With demand rising steadily and supply running low in Columbus, now is a great time to be a landlord. As a tenant, with the introduction of many "big" players in the Columbus market and the third party vendors that follow, now is the time lease or become an owner/occupier before the market fully adjusts to today's supply and demand of industrial space. Let the Colliers Columbus Industrial Team add value to your next transaction with our proven industry knowledge and systematic approach- contact me with any questions regarding our market report or how we can be of assistance in achieving your business' goals.
Citywide positive net absorption in Austin reached an all-time high in Q3 2015 of 871,272 square feet. Rental rates in the CBD increased by 7.5% over the quarter, with average rates reaching $44.60 per square foot, as demand for office space in the CBD remained strong despite new construction. Absorption was strongest in the northwest, southwest, and CBD submarkets, with major leases signed by companies such as Electronic Arts, Oracle, and Cirrus Logic.
Vacancy at the top of the market is slowly moving upward, although levels remain below historic norms. New supply and givebacks upon relocation due to efficiency have begun to and will continue to result in rising vacancy.
Houston's strong job growth and healthy economy boosted office leasing activity in Q3 2012. Leasing activity reached 2.6 million SF, pushing the year-to-date total to over 9.75 million SF. Houston's overall vacancy rate fell to 14.2% as net absorption reached 767,000 SF in Q3. With continued expansion in the energy industry and a strong housing market, Houston's economy is expected to remain healthy.
Houston's office market saw small improvements in Q1 2019, with vacancy rates declining slightly and positive net absorption of 724,000 SF. Leasing activity decreased from the previous quarter while rental rates increased. Job growth in Houston increased by 2.4% over the year, with gains in sectors like mining support, durable goods manufacturing, and construction.
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- Austin's office market experienced negative absorption of 24,603 SF in Q2 2016, the first negative absorption since 2012, driven by decreases in the CBD, North/Domain, Northwest, and Southwest submarkets.
- Vacancy rates increased both citywide and in the CBD and suburban areas. The average rental rate increased slightly to $34.65 per SF. Rents in the CBD increased to $49.52 per SF.
- Three buildings totaling 196,463 SF delivered in Q2, with absorption rates of 91.9% upon delivery. The largest delivery was a 74,804 SF building in North/Domain.
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Colliers toronto office leasing market report 2014Chris Fyvie
The document provides a market report on office space in the Greater Toronto Area for Fall 2013. Some key points:
- Vacancy rates continued to decline in the third quarter of 2013, reaching record lows of 5.8% in the GTA overall and 3.9% downtown.
- With significant new development planned, vacancy rates are expected to rise to near double digits by 2016-2017, providing an opportunity for tenants to renegotiate leases.
- Downtown Toronto demand remains strong with a slight decline in vacancy. The financial core submarket also saw steady demand.
- Midtown and GTA North markets also saw low vacancy rates and positive absorption in the third quarter. The GTA
The document summarizes Houston's office market performance in Q1 2018. Key points include:
- The overall vacancy rate increased to 20.1% due to large companies vacating space after layoffs and mergers, resulting in 1.5 million square feet of negative absorption.
- Sublease availability increased back above 9.0 million square feet due to space returned to the market during the energy downturn.
- Rental rates saw small decreases across classes and markets, with the average Class A rate at $34.91 per square foot.
- Leasing activity decreased 32% from the previous quarter while investment sales dropped slightly over the year.
E M E A F P R M O S C O W O F F I C E S M V H1 09Igor Bevzenko
The Moscow office market saw a 32% decline in take-up during the first half of 2009 compared to the same period in 2008. For the first time, the vacancy rate for Class A office space exceeded the rate for Class B space, at 27% and 19% respectively. Rents fell over 50% on average during the first half of the year. Over 1.2 million square meters of new office space was delivered, increasing the overall vacancy rate, and rents are expected to continue declining for the rest of the year due to additional new supply and stable demand.
Absorption in Memphis remains strong, with 1.6 million square feet absorbed in Q1 2017. Vacancy declined to 6.2% as demand outpaced new supply. Leasing activity was concentrated in the Southeast and DeSoto County submarkets. Over 3 million square feet of new projects are expected to deliver by year's end, with 76.1% being speculative developments. Investment in Class B space increased, with a $33.3 million portfolio purchase indicating a potential shift in investor focus. Fundamentals are expected to remain positive for landlords as rents rise steadily throughout the year.
Houston's office market saw positive absorption of 84,750 SF in Q2 2018, rebounding from negative absorption in Q1 2018. Vacancy rates decreased slightly to 21.7% overall but increased year-over-year. Large companies like Occidental Petroleum are downsizing space and subleasing hundreds of thousands of square feet. Rental rates have remained relatively stable while leasing activity decreased compared to prior periods.
The document summarizes Houston's industrial real estate market performance in Q1 2020. It notes that vacancy increased to 7.9% from 6.9% in Q4 2019. Net absorption remained positive at 3.2M SF despite economic challenges from low oil prices and COVID-19. Rental rates increased slightly. The market faces short term uncertainty from the pandemic's economic impact, but the industrial sector is expected to outperform other commercial real estate over the long run due to growth in e-commerce, inventory stockpiling, and potential supply chain changes.
Austin's office market saw positive net absorption of 163,796 SF in Q4 2018, bringing the year-to-date net absorption to 29,762 SF. Vacancy rates declined to 10.3% as average rental rates increased to $36.19/SF. A major development was Apple's announcement of a 3,000,000 SF campus in North Austin, which will boost the submarket and Austin's economy. New construction is booming, with 4.26M SF under construction and expectations of continued growth in 2019.
Q4 2015 Austin Office Market Research & Forecast ReportLisa Bridges
- Austin's office market posted the highest positive net absorption ever recorded in Q4 2015 at 902,046 square feet. Five new buildings totaling 676,904 square feet delivered, with 1.579 million square feet currently under construction.
- The citywide average rental rate increased slightly to $30.71 per square foot, while Class A CBD rental rates rose 1.4% to $44.36 per square foot. Vacancy rates continued declining, with the CBD rate falling to 6.8%.
- Austin's unemployment rate of 3.3% remains below state and national averages, and job growth in Austin increased 3.9% annually, significantly higher than state and national averages.
- Austin's office market posted the highest ever positive net absorption of 902,046 square feet in Q4 2015, with five new buildings delivering 676,904 square feet of space.
- Vacancy rates continued to decline across the city, with the CBD seeing the largest drop to 6.8% vacancy.
- Rental rates increased slightly citywide and in the CBD, while job growth and absorption remained strong as Austin's economy thrives.
Austin's industrial market saw strong leasing activity and positive net absorption in Q3 2020 despite the effects of the COVID-19 pandemic. Net absorption was 887,476 square feet as large tenants occupied significant space. The vacancy rate decreased from 9.8% to 8.2% while average rental rates slightly decreased citywide. Construction activity also remained high with over 2.3 million square feet under construction across six projects.
Austin's industrial market saw negative absorption in Q3 2017, with vacancy rates rising to 9.9%. Rental rates decreased across the board, with the average dropping to $10.66/SF NNN. Major tenants moved out of large spaces, contributing to over 260,000 SF of negative absorption. Looking ahead, over 500,000 SF of new industrial space is scheduled for completion in Q4 2017.
The Houston office market continued to contract in Q4 2020 with negative absorption of 836,140 square feet. Vacancy rates increased to 21.7% as the COVID pandemic continued to impact the market. Rental rates remained steady while landlord concessions became more aggressive. The outlook remains uncertain depending on vaccine distribution and return to office trends.
Austin's industrial market saw positive net absorption for the first time in 2017, with 324,922 SF absorbed in Q4. Vacancy rates decreased to 8.7% as several large tenants moved into new spaces, including Free Speech Systems taking 32,000 SF. Over 500,000 SF of new construction is expected to deliver in Q1 2018, with over 1 million SF under construction overall, as demand remains strong. Rental rates saw marginal decreases across the board but activity remained high, with over 1 million SF leased in Q4.
Q1 2017 Austin Industrial Research & Forecast Report Kaitlin Holm
Austin's industrial market saw a large quarter of negative net absorption in Q1 2017, with vacancy rates rising. Two large tenants moving out accounted for much of the 622,956 square feet of negative absorption, though they may renew their leases. Rental rates decreased slightly on average but increased for warehouse/distribution spaces. Five new buildings delivered during the quarter totaling 742,165 square feet. Vacancy increased in most submarkets except Northwest where it declined significantly.
Austin's industrial market posted negative net absorption in Q1 2020 due to space coming online, including at NorthTech Business Center and Amazon leasing a large space. Rental rates increased across flex/R&D and warehouse/distribution spaces. Over 1 million square feet of industrial space remains under construction, with over 800,000 square feet scheduled for delivery in Q2 2020. Vacancy increased slightly to 8.6% as large blocks of space came to the market.
Atlanta's office market rebounded
in the fourth quarter of 2018 after
two consecutive quarters of negative
absorption. Leasing activity well ahead
of 2017's pace allowed the market to
record the second strongest quarter of
absorption since 2015. As the market
moves in a positive direction, vacancy
rates will continue to decline while rental
rates increase at a faster pace.
The Austin office market continues to boom, with nearly 500,000 square feet of positive absorption in the first quarter of 2015 driven largely by leasing in the CBD submarket. Vacancy rates remained steady at 10% despite over 500,000 square feet of new inventory delivered. Average quoted rental rates increased slightly. Over 2.5 million square feet of new office space is under construction and expected to deliver in 2015, with another 1 million square feet planned for 2016. Google signed a lease for 207,000 square feet in a new 29-story tower expected to be completed in 2017.
Austin's industrial market posted positive net absorption of 382,166 SF in Q1 2018. Rental rates increased slightly citywide and in submarkets. Vacancy decreased to 7.6% overall. Several large leases were signed, including XPO Last Mile taking 57,500 SF. Over 500,000 SF of new product is set to deliver in Q2 2018, with over half being build-to-suit. Construction continued with over 1 million SF under construction.
The industrial market in Austin saw positive net absorption and increased construction in Q3 2019:
- Net absorption was 116,788 square feet as large tenants occupied significant space.
- Average rental rates increased slightly citywide while flex/R&D rates decreased slightly.
- Over 1.6 million square feet of industrial space was under construction across 23 projects.
- Vacancy rates increased slightly to 8.6% due to new developments posting vacant space.
- Absorption remained high and rental rates increased modestly as demand continued.
Austin's industrial market posted positive net absorption of 539,820 square feet in Q4 2018, bringing the annual total to 1,222,219 square feet. Rental rates increased both quarterly and annually, with the average citywide rate reaching $10.98 per square foot. New construction remained active with 11 buildings delivered and 14 new projects commenced, totaling over 861,000 square feet added in the quarter. The industrial market outlook for Q1 2019 includes over 1.3 million square feet of space expected to deliver and over 330,000 square feet of pre-leased space across 10 blocks over 10,000 square feet.
The summary is:
1) Austin's industrial market saw another quarter of negative net absorption in Q2 2017, though rental rates continued to increase across the market.
2) Vacancy rates increased across most submarkets and reached 9.0% citywide.
3) Over 1 million square feet of new industrial space is under construction, with several large projects set to deliver new supply in the second half of 2017.
Houston's office market posted positive net absorption of 673,000 square feet in Q4 2017, the first positive figure in several years. However, the 2017 yearly total was still negative at -1.7 million square feet due to previous quarters of negative absorption. Vacancy rates decreased slightly to 19.1% from 19.3% over the quarter but remained higher than the 17.5% rate from Q4 2016. Rents for Class A office space decreased slightly to $34.97 per square foot on average.
The document summarizes Houston's industrial real estate market performance in Q2 2017. Some key points:
- Vacancy rate increased slightly from 5.3% to 5.5% as absorption slowed.
- Over 1.5 million square feet of new industrial space was delivered in Q2. There is currently 4.2 million square feet under construction, with 77.2% pre-leased.
- Two large new petrochemical plants were announced, reflecting continued growth in that industry in the Houston area.
- Average industrial rental rates decreased slightly both quarterly and annually as more available space entered the market.
According to the document:
- Office activity has picked up significantly in the past quarter, with demand focused on newer Class A space in the CBD, South Central, and East areas of Austin. This has driven up rental rates in these core areas.
- Sublease space has received significant attention, with many subleases being occupied or nearing lease documentation. This allows tenants to avoid long construction timelines and realize substantial cost savings versus building out their own space.
- Overall vacancy remained at 19.3% as net absorption was negative, but delivery of new supply also slowed, suggesting continued strong demand. Rental rates across Austin increased slightly but remained flat in suburban areas.
The document summarizes commercial real estate market trends in Austin, TX in Q3 2021. Key points include:
- Vacancy rates decreased slightly to 19.2% while net absorption was positive at 705K SF
- Strong demand driven by corporate expansions and relocations is fueling investment in Austin commercial real estate
- Average citywide lease rates increased slightly to $46.16/SF, with higher rates in prime locations
- Over 4.5M SF of new construction is underway to meet continuing strong demand in the market
The industrial market in Austin, TX continued to experience tight supply and strong demand in the second quarter of 2021. Net absorption was 1,006,935 SF while vacancy dropped to 6.6%. However, the large development pipeline will not provide meaningful relief on vacancy until late 2021 and early 2022 as 2.3 million SF is currently under construction. With constrained supply across all size ranges, escalating rents and limited concessions are expected to continue through the rest of the year.
This document provides an overview of the industrial real estate market in Austin, TX for the first quarter of 2021. Key points include:
- Net absorption was 207K SF with vacancy at 7.9%, continuing the positive trends seen in late 2020.
- Population growth in Austin remains very strong at 184 people per day, fueling demand for industrial space from retailers, manufacturers, and logistics companies.
- Over 1.6M SF of new industrial space is under construction, but continued strong demand is expected to absorb space as it delivers through 2022.
The industrial real estate market in Austin saw tremendous growth and demand in 2020, driven primarily by e-commerce including Amazon expanding its footprint six-fold. Additionally, Tesla's announcement of a new gigafactory in Austin increased demand from suppliers. Available big box space over 100,000 SF became scarce as large requirements competed for limited supply. Developers responded by rapidly pursuing new developments to meet rising demand.
The Woodlands office market posted negative net absorption of 130,960 SF in Q3 2020, pushing the year-to-date total to negative 915,333 SF. The average Class A rental rate decreased to $36.85 per SF while the Class B rate increased to $33.42 per SF. Sublease availability rose with 371,974 SF for Class A and 79,878 SF for Class B. Leasing activity declined 43% from the previous quarter.
The Fort Bend commercial real estate market saw modest improvements in the third quarter of 2020. The office vacancy rate declined slightly while absorption and rental rates decreased. Medical office vacancy rose slightly while rental rates increased. Industrial vacancy rose due to new inventory additions, though rental rates increased and absorption was positive. Retail vacancy and negative absorption increased while rental rates rose. Several new commercial projects are under construction.
The Woodlands office submarket in Houston, Texas recorded negative net absorption of 129,342 square feet in the second quarter of 2020, pushing the mid-year 2020 total net absorption to negative 239,835 square feet. Specifically, Class A space saw negative absorption due to a tenant vacating 134,000 square feet, while Class B space recorded negative absorption of 46,053 square feet. Rental rates for both Class A and B space remained stable despite the increase in vacancy rates caused by the negative absorption.
The Fort Bend commercial real estate market saw declines across most sectors in Q2 2020. The office vacancy rate rose to 11.8% with negative absorption, while average rents fell slightly. Medical office vacancy increased to 15.3% while rents rose. Industrial vacancy remained at 9.4% despite positive absorption as new inventory was added. Retail vacancy increased to 6.9% with negative absorption, as average rents grew slightly. Several new commercial projects are under construction across sectors totaling over 1.2 million square feet.
The document discusses how the COVID-19 pandemic has negatively impacted Houston's healthcare real estate market. Healthcare systems have seen their bottom lines impacted by the cancellation of profitable elective surgeries and costs associated with treating COVID-19 patients. As a result, previously planned expansions have been put on hold or scaled back as healthcare providers reduce expenses and medical office leasing activity has slowed. Some construction projects are still moving forward but larger, more ambitious capital projects have been delayed until the effects of the pandemic subside.
The Woodlands Class A office market recorded positive net absorption of 277,596 square feet in Q1 2020, while Class B properties saw negative net absorption of 391,360 square feet. Rental rates for Class A properties were $38.58 per square foot on average in Q1 2020 compared to $32.18 for Class B. Vacancy rates for Class A were 7.3% compared to 18.6% for Class B.
The Fort Bend commercial real estate market saw improvements in the office and medical office sectors in Q1 2020. The office vacancy rate decreased while absorption and rental rates increased. Medical office saw declines in vacancy rate and rental rates. The industrial sector grew with strong absorption, but vacancy also increased significantly due to new inventory. Retail rental rates increased slightly while vacancy and absorption decreased. Several new developments are underway across property types.
The document provides a quarterly market report on the Houston retail sector in Q1 2020. It summarizes that the sector was healthy in Q1 but will be negatively impacted by COVID-19 going forward. Key statistics for Q1 2020 include a vacancy rate of 5.4% and 429,013 SF of net absorption. However, retail has been hardest hit by the economic shutdown, and vacancy is predicted to spike to over 12% with store closures. The future impact on the sector is difficult to predict due to the pandemic.
The seniors housing industry in Texas continues to adapt to meet the needs of an aging population. Several key points:
- Occupancy rates and rent growth increased across major Texas markets in 2019. Austin saw the highest rent growth at 5.8% year-over-year.
- Absorption was positive, with over 1,600 units absorbed in Texas in the second half of 2019. Dallas saw the highest absorption of 658 units.
- Construction costs for seniors housing have risen 7-10% annually due to labor and materials shortages. Dallas and Houston have over 5,000 units under construction total.
- The population of seniors is growing rapidly in Texas cities like Austin, Dallas, Houston
The Fort Bend commercial real estate market saw mixed trends in Q4 2019. Office vacancy rates increased slightly while rental rates increased. Medical office vacancy rates rose significantly while rental rates decreased slightly. Industrial vacancy increased due to new inventory additions despite positive net absorption, while rental rates rose. Retail vacancy and rental rates both increased despite negative net absorption. Several new commercial projects are under construction across all sectors.
The summary provides the following key points in 3 sentences:
Houston's healthcare real estate market continued growing in 2019 with increasing demand for medical properties driven by population growth and aging demographics. While the total vacancy rate rose to 15% with new supply, average rental rates still increased from $24.09 to $24.57 per square foot. New hospitals, medical office buildings, and facilities such as urgent care centers were delivered to meet ongoing strong demand across various healthcare sectors in the Houston area.
The Houston industrial market saw 13 million square feet of new inventory added in 2019. Vacancy rates increased to 6.9% in the fourth quarter, though net absorption remained positive at 2.4 million square feet. Demand continues to be driven by logistics, distribution, and e-commerce users, though an oversupply of spec construction may challenge landlords in some submarkets. Overall, the Houston industrial market had a solid year with healthy absorption and job growth.
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Q2 2018 Austin Office Research & Forecast Report
1. Research &
Forecast Report
AUSTIN | OFFICE
Q2 2018
Kaitlin Holm Research and Marketing Coordinator | Austin
Boots On The Ground Commentary by David Bremer
Our “Boots on the Ground” viewpoint is the voice of our experts, who
have broken down the market data and compared it to what they are
seeing for themselves. This is their take on what the numbers actually
mean for the Austin office market.
Austin’s current office market can be summed up in three words:
fast, competitive and expensive. While absorption decreased and
vacancy went up slightly in the second quarter, the market has
been extremely busy in comparison to past summer slowdowns.
Rates and operating expenses have continued to trend upward,
primarily due to skyrocketing taxes. We are seeing competition
for prime spaces in almost every submarket in the city. We are
setting rental rate records in the CBD ($45+ operating expenses),
Eastside properties continue to mimic the CBD’s upward rate
trends (including the obligation to pay for parking at most new
developments) and Class A suburban properties are commanding
record rental rates as well. “Fast” can be a bit misleading, but
tenants are being forced to move on properties very quickly in
order to separate themselves from competition. Deal pace has
simultaneously slowed down as Landlords take their time to
negotiate and document the deal the way they want it.
While small and medium sized office users are feeling the pain of
higher rents and operating expenses, the competition for space
isn’t as significant. There are plenty of options available, but
Landlords continue to push for longer lease terms (which are
often necessary to cover increasing construction/improvement
expenses). With increasing rents, Austin follows the national trend
of trying to fit a lot of people in a small space. In the CBD, the
average tech tenant now targets 5.5 people per 1,000 SF, yet the
average parking ratio is closer to 2.5 per 1,000 SF. It’s important
to do your homework and consider the possible pitfalls associated
with high density: Are you at risk of triggering a density clause?
Can you park your employees? Will the air conditioning and
electric capacity keep up in August? Also, all tenants need to pay
close attention to continuously rising construction costs. Taking
the time to think through construction and get preliminary bids can
be the difference between a great process and a messy one.
Austin’s office market is fast, competitive
and expensive
Future Forecast
If the rumor mill is correct, there are some more big deals coming
down the pipeline. Our market has been waiting patiently for new
product to come to market in order to provide some breathing
room, but as we get closer to buildings being delivered (Domain,
North, East) and beginning construction (CBD), we’re hearing about
big corporate users preleasing space. We’ll give you a hint: Look at
the big users that have been taking down space for the past 3 years
and expect more of the same. We don’t think much of the space
that is set to deliver over the next two years will deliver free and
clear. As long as we don’t see a tech bust, we feel that the market
is going to remain fast, competitive and expensive.
By The Numbers
TOTAL INVENTORY
51.9M SF
TOTAL VACANCY
12.3%
Q2 NET ABSORPTION
-446,698 SF
YTD NET ABSORPTION
-684,045 SF
TOTAL UNDER
CONSTRUCTION
4.09M SF
TOTAL PRE-LEASED
2.1M SF
CBD CLASS A
$56.98as tracked by Colliers
SUBURBAN
CLASS A
$36.26
AVERAGE
RATE/SF
$34.51
*Rates inclusive of estimated operating expenses.
2. 2
Austin Office Overview
In the second quarter of 2018, Austin’s office market reported
446,698 SF of negative net absorption. The majority of the negative
absorption happened in class A buildings with a total of 241,458
SF of negative net absorption. Class B buildings in Austin posted
218,469 SF of negative net absorption and class C properties
posted 13,229 SF of positive net absorption.
There is currently 4,090,698 SF of office space under construction
and 2,131,315 SF of that is pre-leased. The third quarter of 2018 is
expected to see 1,155,314 SF of deliveries and 729,396 SF of that
is pre-leased. One of the buildings set to deliver in the third quarter
of 2018 is Domain Tower. The entire 309,883 SF building has been
leased to Indeed.com, who is set to move in at the end of the year.
810 Barton Springs Road in the South submarket is WeWork’s
newest location. The 90,500 SF building delivered in July 2018.
810 Barton was also the largest of the four buildings to deliver in
the second quarter. Looking forward, the third quarter in 2018 is
expected to see eleven new buildings deliver.
The citywide average rental rate decreased over the quarter from
$35.06 per SF in Q1 2018 to $34.51 per SF in Q2 2018. Class A
rental rates in Austin’s CBD decreased by 3.6% over the quarter
to $49.59 per SF from $51.45 per SF in the first quarter of 2018.
Overall suburban Class A rental rates decreased, from $37.03 per
SF to $36.26, over the quarter.
In April, Austin was named the best place to live in the United
States for the second year in the row by U.S News & World Report.
This list ranks the top 125 largest metropolitan areas in the U.S. and
is based on affordability, job prospects and quality of life. Austin
was followed on the list by Colorado Springs and Denver, Colorado.
Des Moines, Iowa and Fayetteville, Arkansas rounded out the top
five top places to live. San Antonio was ranked 14th on the list
and Dallas-Fort Worth was ranked 18th. Houston was ranked the
lowest of the major Texas metros, but it was ranked 26th on the list
just below Boston, Massachusetts.
Vacancy & Availability
Austin’s citywide vacancy rate increased from 11.2% in the first
quarter of 2018 to 12.3% in the second quarter of 2018. The CBD
class A vacancy rate increased from 8.9% in the first quarter of
2018 to 9.9% in the second quarter of 2018. The suburban class A
vacancy rate increased quarter over quarter from 11.0% to 12.2%.
Overall suburban vacancy increased quarter over quarter from
11.0% in Q1 2018 to 12.2% in Q2 2018. The only submarkets that
recorded a decrease in vacancy over the quarter include Cedar
Park, Central, East and South. The Southeast submarket reported
the largest increase in vacancy, climbing from 14.6% to 24.7% over
the quarter.
2 Austin Research & Forecast Report | Q2 2018 | Office | Colliers International
Market Indicators
Relative to prior period
Annual
Change
Quarterly
Change
Quarterly
Forecast*
VACANCY
NET ABSORPTION
NEW CONSTRUCTION
UNDER CONSTRUCTION
*Projected
Summary Statistics
Austin Office Market Q2 2017 Q1 2018 Q2 2018
Vacancy Rate 11.5% 11.2% 12.3%
Net Absorption
(Million Square Feet)
.369 .237 -.446
New Construction
(Million Square Feet)
.000 .792 1.23
Under Construction
(Million Square Feet)
.095 3.45 4.09
Class A Vacancy Rate
CBD
Suburban
9.3%
11.4%
8.9%
11.0%
9.9%
12.2%
Gross Asking Rents
Per Square Foot Per Year
Average $33.99 $35.06 $34.51
CBD Class A $49.84 $51.45 $49.59
Suburban Class A $34.69 $37.03 $36.26
0.0
5.0
10.0
15.0
20.0
25.0
-200,000
-100,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Net Absorption New Supply Vacancy
ANNUAL ABSORPTION, NEW SUPPLY, AND VACANCY
3. $0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
$50.00
CBD Rents Suburban Rents
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
CBD Vacancy Suburban Vacancy
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Net Absorption New Supply Vacancy
Absorption & Demand
Austin’s office market posted 446,698 square feet of negative net
absorption in Q2 2018. The submarkets that experienced positive
net absorption gains over the quarter include Cedar Park, Central,
East, Round Rock, South and Southwest. We believe a lot of the
negative absorption being recoreded on CoStar is due to some of
Oracle’s old spaces being put on the market.
A majority of the positive net absorption over the quarter occurred
in the class A Northwest submarket, totaling 52,198 square feet of
positive net absorption. Some of this can be attributed to Alcatel-
Lucent moving into their 38,044 SF space at Campus at the
Arboterum V (10431 Morado Cirle). The second highest positive
net absorption occurred in class B space in the Central submarket,
with 44,108 square feet absorbed over the second quarter and with
three undisclosed tenants moving into a total of 71,720 square feet
of space throughout the submarket.
The Southwest submarket recorded the greatest number of leases
for spaces 10,000 square feet or larger in the second quarter.
There were eight leases signed in Q2 in the Southwest submarket
including the City of Austin taking 25,137 square feet at Barton
Oaks Plaza V (901 S MoPac Expressway). The CBD submarket
had the highest amount of square feet leased in Q2 with 416,005
square feet reported. One of the leases signed was Indeed’s
307,771 square foot lease at Block 71 (200 West 6th Street).
Rental Rates
According to CoStar, our data provider, Austin’s citywide average
rental rate decreased over the quarter from $35.06 per SF to
$34.51 per SF. Since we are seeing an upward trend in rental rates
throughout the market, this decrease may be due to some Lower
Level or Basement space coming availale.
As expected, the highest rates across the Austin office market in
the second quarter were in CBD class A buildings where rental
rates averaged $49.59 per SF. Rental rates were also high in the
Southwest and West Central submarkets where class A rental rates
reached $40.67 per SF and $43.09 per SF, respectively.
Citywide class B rental rates increased in Q2 from $28.24 in Q1 to
$28.80 per square foot. CBD class B rental rates increased by 1.3%
over the quarter from $43.38 per square foot to $43.96 per square
foot in Q2 2018.
3 Austin Research & Forecast Report | Q2 2018 | Office | Colliers International
UNEMPLOYMENT 5/17 5/18
AUSTIN 3.0% 2.8%
TEXAS 4.1% 3.7%
U.S. 4.1% 3.6%
JOB GROWTH
Annual
Change
# of Jobs
Added
AUSTIN 3.3% 33.9K
TEXAS 2.8% 344.7K
U.S. 1.6% 2.4M
CBD vs. Suburban
CLASS A OFFICE VACANCY
CLASS A OFFICE RENTS
Job Growth & Unemployment
(not seasonally adjusted)
QUARTERLY ABSORPTION, NEW SUPPLY, AND VACANCY
4. 44 Austin Research & Forecast Report | Q2 2018 | Office | Colliers International
Q2 2018 Top Office Lease Transactions
BUILDING NAME/ADDRESS SUBMARKET SF TENANT LEASE DATE
200 W 6th St CBD 307,771 Indeed May-18
1821 Directors Blvd Southeast 206,418 Internal Revenue Service1
May-18
12015 Park Thirty Five Cir North/Domain 197,496 Texas Commission on Environmental Quality1
May-18
6500 Tracor Ln East 44,418 American Honeybee Protection Agency Jun-18
1801 E 6th St East 43,000 Zebra Jun-18
3800 Quick Hill Rd North/Domain 42,739 Undisclosed Jun-18
1801 E 6th St East 30,309 ForeFlight Jun-18
4009 Marathon Blvd West Central 26,391 Undisclosed Jun-18
206 E 9th St CBD 25,805 YouEarnedIt Apr-18
901 S MoPac Expy Southwest 25,137 City of Austin May-18
1601 S MoPac Expy Southwest 25,001 Undisclosed Jun-18
901 E 6th St East 24,625 Car2Go Jun-18
6200 Bridgepoint Pky Northwest 22,559 Undisclosed Apr-18
9606 N MoPac Expy Northwest 22,328 MHNet Jun-18
221 W 6th St CBD 22,118 Procore May-18
6415-6505 Airport Blvd Central 21,363 Undisclosed Jun-18
9606 N MoPac Expy Northwest 21,034 Undisclosed Apr-18
501 Congress Ave CBD 20,304 Undisclosed Jun-18
3500 Wadley Pl North Ind 20,000 Undisclosed Apr-18
Leasing Activity
Austin’s office market recorded 1,424,506 SF of leasing activity in Q2 2018. Major transactions this quarter included Indeed pre-leasing ten
floors at 200 W 6th St (Block 71), totalling 307,771 SF. Block 71 is not set to deliver until Q2 of 2021 and is already 46% leased.
1
Renewal
Q2 2018 Significant Sales Transactions – (100,000 SF or greater)
BUILDING ADDRESS SUBMARKET RBA (SF) YEAR BUILT BUYER SELLER SALE PRICE $/SF CLOSED
IRS Compliance Center
- 1821 Directors Blvd1 Southeast 206,418 1985
Boyd Watterson
Asset Management
Honeck Properties, LP $64,750,000.00 $313.68 Apr-18
Met Center 9 - 7401 E
Ben White Blvd1,2 Southeast 103,235 2000
World Class
Property Company
Digital Realty Trust $13,703,141.00 $132.74 Apr-18
Quarry Lake Business
Center - 4515 Seton
Center Pky
Northwest 117,265 1997 Velocity Credit Union Riverside Resources Undisclosed May-18
Sales Activity
Austin’s office investment sales activity included three transactions. Boyd Watterson Asset Management purchased the 206,418 square
foot IRS Compliance Center from Honeck Properties, LP as part of a portfolio sale that sold for almost 65 million dollars. Met Center 9 was
purchased by Digital Realty Trust from World Class Property Company for around $132.74 per square foot.
Sources: CoStar and Real Capital Analytics
1
Part of a portfolio 2
Sale Price is Approximate
5. 5 Austin Research & Forecast Report | Q2 2018 | Office | Colliers International
This is placeholder text. Place your text here.
Chart Title–One Line
Chart Title
SUBHEAD 1 SUBHEAD 1 SUBHEAD 1 SUBHEAD 1
Body
INVENTORY DIRECT VACANCY
SUBLEASE
VACANCY
VACANCY VACANCY RATE (%)
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q2-2018 Q1-2018 Q2-2018 Q1-2018
AVG ($/
SF)
CBD
A 31 7,750,812 727,508 9.4% 38,479 0.5% 765,987 9.9% 8.9% -79,463 149,927 $49.59
B 36 2,831,188 219,612 7.8% 43,699 1.5% 263,311 9.3% 9.2% -2,958 -47,199 $43.96
C 9 524,277 13,659 2.6% 11,100 2.1% 24,759 4.7% 3.0% -8,939 948 $30.29
Total 76 11,106,277 960,779 8.7% 93,278 0.8% 1,054,057 9.5% 8.7% -91,360 103,676 $47.98
SUBURBAN
A 182 20,350,576 2,046,313 10.1% 438,879 2.2% 2,485,192 12.2% 11.0% -161,995 -104,179 $36.26
B 337 17,463,385 2,439,121 14.0% 201,691 1.2% 2,640,812 15.1% 13.5% -215,511 -224,674 $27.32
C 60 3,017,367 222,540 7.4% 3,535 0.1% 226,075 7.5% 8.2% 22,168 -12,170 $24.03
Total 579 40,831,328 4,707,974 11.5% 644,105 1.6% 5,352,079 13.1% 11.9% -355,338 -341,023 $32.04
OVERALL
A 213 28,101,388 2,773,821 9.9% 477,358 1.7% 3,251,179 11.6% 10.4% -241,458 45,748 $38.98
B 373 20,294,573 2,658,733 13.1% 245,390 1.2% 2,904,123 14.3% 12.9% -218,469 -271,873 $28.80
C 69 3,541,644 236,199 6.7% 14,635 0.4% 250,834 7.1% 7.5% 13,229 -11,222 $24.57
Total 655 51,937,605 5,668,753 10.9% 737,383 1.4% 6,406,136 12.3% 11.2% -446,698 -237,347 $34.51
INVENTORY
DIRECT
VACANCY
SUBLEASE
VACANCY
VACANCY VACANCY RATE (%) NET ABSORPTION (SF)
RENTAL
RATE
CLASS
# OF
BLDGS
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q2-2018 Q1-2018 Q2-2018 Q1-2018
AVG ($/
SF)
CEDAR PARK
A 2 232,274 28,863 12.4% 0 0.0% 28,863 12.4% 14.2% 4,078 -98 $34.05
B 4 174,000 26,000 14.9% 0 0.0% 26,000 14.9% 19.3% 7,510 110 $27.00
Total 6 406,274 54,863 13.5% 0 0.0% 54,863 13.5% 16.4% 11,588 12 $31.14
CENTRAL .
A 3 474,288 51,044 10.8% 4,317 0.9% 55,361 11.7% 15.9% 19,899 -44,568 $39.89
B 33 1,869,916 125,929 6.7% 12,345 0.7% 138,274 7.4% 9.8% 44,108 -41,796 $28.82
C 13 776,153 15,608 2.0% 0 0.0% 15,608 2.0% 1.8% -1,739 -4,478 $25.54
Total 49 3,120,357 192,581 6.2% 16,662 0.5% 209,243 6.7% 8.7% 62,268 -90,842 $29.16
EAST
A 3 162,582 0 0.0% 0 0.0% 0 0.0% 0.0% 0 4,866 $40.55
B 14 1,086,547 492,563 45.3% 0 0.0% 492,563 45.3% 45.6% 3,314 -5,276 $32.98
C 4 147,187 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 -
Total 21 1,396,316 492,563 35.3% 0 0.0% 492,563 35.3% 35.5% 3,314 -410 $34.31
FAR NORTHEAST
B 1 23,408 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 -
Total 1 23,408 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 -
FAR NORTHWEST
A 15 2,206,695 230,424 10.4% 30,611 1.4% 261,035 11.8% 10.6% -26,555 -30,771 $31.67
B 7 282,360 15,710 5.6% 0 0.0% 15,710 5.6% 3.3% -6,283 21,720 $24.24
C 3 139,876 9,730 7.0% 3,535 2.5% 13,265 9.5% 5.5% 0 -5,515 $21.39
Total 25 2,628,931 255,864 9.7% 34,146 1.3% 290,010 11.0% 9.8% -32,838 -14,566 $30.57
Austin Suburban Office Market Summary
Austin Office Market Summary (CBD, Suburban, & Overall)
7. 7 Austin Research & Forecast Report | Q2 2018 | Office | Colliers International
Office Development Pipeline
4,090,698 square feet of office space was under construction during Q2 2018. The largest of the four buildings to deliver in Q2 was
Summit II at La Frontera, a 95,000 square foot building at 710 Hester’s Crossing Road. Ten buildings were given the green light to begin
construction this quarter.
BUILDING NAME ADDRESS SUBMARKET SF
PRE-
LEASED
DEVELOPER
EST.
DELIVERY
Fourth & Office 1800 E 4th St East 42,000 15.40% Capsa Ventures Jul-18
Building 4 1200 Sheldon Cv Northeast 32,000 100.0% Unknown Jul-18
Building 3 1200 Sheldon Cv Northeast 50,826 100.00% Unknown Jul-18
Preserve at 620 8201 N FM 620 Far Northwest 226,329 17.7% PacVentures, Inc. Jul-18
Texas Mutual Insurance 2200 Aldrich East 270,000 99.60% Catellus Austin LLC Aug-18
1000 N Lamar Blvd 1000 N Lamar Blvd West Central 20,001 100.0% Unknown Aug-18
Harrison Building 3205 Industrial Ter North/Domain 11,263 4.60% Unknown Aug-18
Domain Tower 10721 Domain Dr North/Domain 309,883 100.00% HPI Real Estate Services &
Investments
Sep-18
Parmer 3.4 13011 McCallen Pass Northeast 115,000 0.0% Karlin Real Estate Sep-18
Mesa Creek 801 E Old Settlers Blvd Round Rock 60,000 1.20% Halff Associates Sep-18
Scottsdale East - Building G 1615 Scottsdale Rd Cedar Park 20,000 0.0% Unknown Sep-18
Third + Shoal 208 Nueces St CBD 347,637 91.60% TIER REIT Oct-18
901 E 6th St 901 E 6th St East 129,444 22.20% Pegalo Properties Oct-18
Parmer Office Condos 3109 Kenai Dr Cedar Park 18,835 12.3% Unknown Oct-18
The Reserve at Oak Hill 6804 Old Bee Caves Rd Southwest 38,448 0.0% Unknown Oct-18
Springdale General 1023 Springdale Rd East 165,000 99.5% Unknown Nov-18
Chandler Creek Business Park - Bldg
K1
Eagles Nest St Round Rock 16,345 0.0% Unknown Nov-18
Chandler Creek Business Park - Bldg
K2
Eagles Nest St Round Rock 16,345 0.0% Unknown Nov-18
Building 2 120 S Lakeline Blvd Cedar Park 22,906 0.0% Unknown Dec-18
Bldg 2 1601 E Pflugerville Pky Far Northeast 10,378 0.0% Unknown Dec-18
Bldg 1 1601 E Pflugerville Pky Far Northeast 15,179 80.2% Unknown Dec-18
Domain 11 3110 Esperanza Xing North/Domain 315,862 100.00% Endeavor Real Estate Group Dec-18
2010 S Lamar Blvd 2010 S Lamar Blvd South 78,275 13.9% Unknown Dec-18
The Hills Professional II 4615 Bee Caves Rd Southwest 29,500 1.7% Unknown Dec-18
Foundry 310 Comal St East 75,369 33.7% Cielo Realty Partners Feb-19
1801 E 6th St 1801 E 6th St East 134,367 87.7% Riverside Resources Mar-19
Building III 7717 Southwest Pky Southwest 20,858 0.0% Unknown Mar-19
Saint Elmo Plaza 4223 S Congress Ave South 100,000 0.0% GroundFloor Development Apr-19
Wesco 8656 W State Highway 71 Southwest 19,584 2.3% Unknown Apr-19
SXSW Center 1400 Lavaca St CBD 140,000 44.5% Greenbelt Commercial Jun-19
Offices At Saltillo 901 E 5th East 150,000 0.0% Endeavor Real Estate Group Jun-19
Buildings 2, 3, 4,, 5, 7, 9,10 13625 Ronald Regan Blvd Round Rock 36,650 27.4% Huffman Builders Jun-19
Domain 12 3110 Esperanza Xing North/Domain 320,102 0.0% TIER REIT, Inc. Aug-19
Building 1 1100 S Congress Ave South 53,389 38.4% Unknown Oct-19
Block 71 200 W 6th St CBD 678,923 46.0% Trammell Crow Central Texas Ltd Apr-21