WHY RENTS FOR LOCAL OFFICE SPACE SET RECORDS
Class A office space price jumps almost 7.8% over June 2016.
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