Q3 2016 Austin Office Market Report

AUSTIN, Texas - Nov. 4, 2016 - PRLog -- Austin continues to grow and the office rental rates are going along for the ride. Austin's population is growing faster than any other metro in the U.S., and now the CBD rates are higher than other large metro's including Chicago, Miami, and even Los Angeles. As a result, the vacancy rates are starting to fall, and there's about 350,000 square feet set to deliver by the end of 2016 and 1,297,228 square feet coming in Q1 2017.

Three buildings totaling 259,480 SF delivered in the third quarter, and 216,549 SF of that was preleased. The largest building that delivered was the 179,846 SF 5th & Colorado building, located in the CBD submarket.

The citywide average rental rate increased by 7.3% from $36.02 per square foot to $38.68 per square foot over the quarter. Class A rental rates in Austin's CBD increased by 12.4% over the quarter to $50.90 per square foot from $49.52 per square foot in Q2. Overall suburban Class A rental rates also increased, from $33.69 per square foot to $35.20 over the quarter.