AUSTIN, TX — The Austin office market will record mixed fundamentals throughout the rest of this year as speculative construction outpaces demand; however, the metro’s long-term outlook remains favorable, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.(Austin City Hall, top right photo)
Despite the recent uptick in vacancy, 2008 has already marked a significant milestone for office owners, with the metro’s average rents surpassing peaks attained during the tech boom earlier this decade.
“Unlike the national trend, sales velocity in Austin has accelerated in recent months, indicating a vibrant investment climate through the end of the year,” says Bradley H. Bailey, regional manager of the Austin office of Marcus & Millichap.
Following are some of the most significant aspects of the Austin Office Research Report:
· Employers in Austin are projected to add 10,000 positions this year to expand payrolls by 1.3 percent, one of the highest rates in the country.
· Building activity in Austin will peak in 2008 with the completion of 1.9 million square feet of mostly speculative space, represent
ing an increase to office inventory of approximately 5 percent.· Vacancy is forecast to end the year at 17.3 percent. · Asking rents are expected to rise 5.6 percent to $26.66 per square foot.
· Effective rents will increase 4.1 percent to $22.76 per square foot.
For a copy of the complete Austin Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap/
Press Contact: Stacey CorsoCommunications Department
(925) 953-1716
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