Downtown Austin Office Space

For 2017, downtown Austin office space is a tighter commodity than it was in the past. Because of the population and demand on commercial real estate vacancies in the sub-markets within Austin have gotten tighter. With that being said, there are no office properties being delivered to sustain the demand that is currently for new offices.  In the downtown Austin office market,there is approximately 9.9M SF of total space of which the vacancy rate currently is at 7% for Class A space and 10 % for Class B office space for Q3 2017.

2017 Outlook:  Lease rates moving higher , Class A up to $53.00+ psf per yr and Class B stable at high $30’s per sf per yr. Vacancy rates for Class A hovering has moved lower below 8% with Class B , just below 10%

Q2 2018 Outlook:  Class A Inventory is higher than Class B by 5M square feet of space. Vacancies running for Class A are at 8% while Class B is at 11%.

 Downtown Office Space Layouts and Lease Rates

There are 2 major classes of downtown Austin office spaces – Class A and Class B. Class A makes up most of the square footage of office properties in downtown Austin.  For Q2 2018 Lease rates range from $41/ psf per yr to $52/ psf per yr.

Class B offices have a slightly higher vacancy rate. As far as lease rates, a tenant should expect to pay a premium currently for both Class A and Class B in the central business district. On top of lease rates, always factor in parking which can be up to0  $100 plus a month per vehicle for covered private parking.  Also commute times have changed drastically with the traffic in Austin.