Catapulted by a population that just exceed 2 million, the office market is also reaching record highs for occupancy and rental rates.
According to new figures from the research team with Cushman & Wakefield / Oxford Commercial (CWOC), the vacancy rate of the Austin office market was 8.5 percent at the end of the first quarter, meaning the average of all office space was 91.5 percent occupied. Meanwhile, the overall asking rental rate hit an all-time historic high of $33.52 per square foot – which translates to a 6.2 percent increase over this time last year when the rate was $31.55. The current rental rate is the highest ever recorded by CWOC since it started tracking statistics in the early 1990s. Those rates bottomed out in late 2010, and have steadily risen since.
“Barring any external disruption, Austin’s office market will remain tilted in the landlord’s favor in 2016,” said Rick Whiteley, a partner with Austin-based Oxford Commercial, a commercial real estate firm that tracks the office market.
The office market stats reflect what the U.S. Census Bureau just confirmed: of those metropolitan areas with a population over 1 million, the Austin metro area is the fastest-growing for the fifth year in a row.