WHY RENTS FOR LO­CAL OF­FICE SPACE SET RECORDS

Class A of­fice space price jumps al­most 7.8% over June 2016.

Austin American-Statesman - - FRONT PAGE - By Shonda No­vak sno­vak@states­man.com Of­fices

De­spite slightly slower growth in the Austin area’s econ­omy, the re­gion’s of­fice mar­ket ended the sec­ond quar­ter on a strong note, with rents reach­ing record highs, ac­cord­ing to a new re­port.

Gross rents for top-flight of­fice space (Class A) in Cen­tral Texas hit $39.19 per square foot per year in June, an all-time high and a jump of al­most 7.8 percent from the prior June, ac­cord­ing to the lat­est re­port from Cush­man & Wake­field Austin, a com­mer­cial real es­tate ser­vices firm that tracks the lo­cal of­fice mar­ket.

Rents for top-tier space down­town also hit a record, av­er­ag­ing $54.11 a square foot per year, Cush­man & Wake­field said.

The oc­cu­pancy rate for Class A space av­er­aged 89.3 percent, down a notch from 90.4 percent in June 2016.

“Even with a slight uptick in va­cancy across the city, na­tional cor­po­ra­tions con­tinue to ex­pand their pres­ence in Austin due to its rep­u­ta­tion for a high-qual­ity of life, ed­u­cated tal­ent pool and cost of liv­ing,” said Brian Walker, di­rec­tor of ten­ant rep­re­sen­ta­tion for Cush­man & Wake­field. “Be­cause of this in­flux, the of­fice mar­ket re­mains strong, specif­i­cally in leas­ing newly de­liv­ered high-end of­fice prod­uct. Over­all, Austin’s fu­ture con­tin­ues to show

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