Press Release (ePRNews.com) - AUSTIN, Texas - Jul 26, 2017 - Boots On The Ground Commentary by David Bremer
Our “Boots on the Ground” view point is the voice of our experts, who have broken down the market data and compared it to what they are seeing for themselves. This is their take on what the numbers actually mean for the Austin office market.
There are two mistruths I’ve heard perpetuated by the real estate community, including myself once or twice, over the past year: (1) This occupancy and these rates can’t last forever, and (2) MoPac construction should be done soon.
The Austin office market rebounded sharply in the 2nd quarter, with extremely high Net Absorption of almost 600,000 RSF. Vacancy remained relatively flat, however rates continue to trend higher.
Our local experts have seen an increase in general activity over the past few months. CBD and East submarkets are still extremely hot with significant competition for prime spaces. On the East side, several large projects delivering throughout 2018 should help create additional leasing opportunities near the CBD and in East Austin, but new deals continue to trade at high rates, therefore we’re not predicting rates to decline. There is no substantial help on the horizon for the core CBD, however. The suburbs continue to be reasonably healthy with a surge in medium and large activity over the past five months, but there are still plentiful options and Landlords are being forced to compete for deals.
Read more at www.colliers.com/texas/austinoffice Source :