New building openings were a quarterly highlight, Cushman & Wakefield said.
Granger said there’s “a strong trend” of tenants wanting to be in mixed-use projects, such as the Hill Country Galleria and the Domain, with convenient living, dining, shopping and entertainment options available for employees. Such projects help recruit top talent, Granger said, and as a result employers are willing to pay more to lease space in or near such projects.
In downtown Austin, the overall occupancy rate dipped from the first quarter, to 90.2 percent. Cushman & Wakefield said. Much of the increase, however, is due to the opening in May of 500 West 2nd, a new tower with 505,000 square feet of space. Though 95 percent leased, only a few tenants have moved in so far. Google will be leasing more than 200,000 square feet in the building, which CBRE is managing and leasing.
The 90,500-square-foot office building at 801 Barton Springs Road will have four stories of office space atop 4½ levels of parking.