2019-07-11_DTZ戴德梁行_Office_Q1_2019_AUSTIN_OFFICE_2页_245kb

Austin Office Market Summary Q1 2019

Core Content

The Austin office market experienced a strong performance in Q1 2019, marked by continued economic growth and robust leasing activity. The city's economy remained resilient, with low unemployment and significant job creation, driven largely by the expansion of the high-tech sector. These factors contributed to a stable and growing office market.

Economic Indicators

• Austin Employment: Increased from 1,058,000 in Q1 2018 to 1,079,000 in Q1 2019.
• Austin Unemployment: Remained at 3.0%, one of the lowest in the top 50 U.S. metro areas.
• U.S. Unemployment: Decreased from 4.1% to 3.8%, indicating a broader economic trend.
• Job Growth: Austin added nearly 21,000 jobs over the past 12 months, primarily due to high-tech industry expansion.

Market Indicators

• Vacancy Rate: Overall vacancy rate fell to 10.5%, down 10 basis points from Q4 2018.
• Net Absorption: The Austin office market absorbed 708,000 square feet (sf) in Q1 2019.
• Under Construction: Office inventory under construction reached 5.6 million sf, a significant increase from 2.9 million in Q1 2018.
• Average Asking Rent: The overall average asking rent increased to $37.48 per square foot (psf), with the CBD maintaining the highest rate at $53.89 psf.

Market Overview

• CBD Performance:
  • Vacancy rate dropped to 7.3% for all classes and 5.9% for Class A.
  • Net absorption was 66,736 sf, with strong leasing activity.
• Submarket Performance:
  • Central: Vacancy at 11.4%, net absorption 45,774 sf.
  • Far Northwest: Vacancy at 9.1%, net absorption 322,398 sf.
  • North Central: Vacancy at 15.8%, net absorption 23,590 sf.
  • Northeast: Vacancy at 14.7%, net absorption 52,054 sf.
  • Northwest: Vacancy at 13.1%, net absorption 18,879 sf.
  • South Central: Vacancy at 5.8%, net absorption 12,272 sf.
  • Southeast: Vacancy at 18.2%, net absorption 96,523 sf.
  • Southwest: Vacancy at 11.3%, net absorption -54,466 sf.
  • Round Rock: Vacancy at 20.0%, net absorption 24,134 sf.
  • East: Vacancy at 16.2%, net absorption 100,009 sf.

Outlook

• Development Trends: High-profile office developments with large block take-downs are continuing.
• Corporate Demand: Major tenants like Google, Amazon, Indeed, and WeWork are driving pre-leasing and maintaining vacancy levels.
• Construction Levels: City-wide construction reached an all-time high of 5.6 million sf.
• Rental Trends: Asking rates are expected to continue rising, and occupancy levels are projected to remain healthy.

Key Lease Transactions Q1 2019

Key Sales Transactions Q1 2019

MarketBeat Summary

• Class A:
  • Inventory: 31,394,885 sf.
  • Vacancy rate: 9.7%.
  • Net absorption: 585,756 sf.
  • Average asking rent: $41.83 psf.
• Class B:
  • Inventory: 17,414,135 sf.
  • Vacancy rate: 11.9%.
  • Net absorption: 117,148 sf.
  • Average asking rent: $33.72 psf.
• Class C:
  • Inventory: 3,154,973 sf.
  • Vacancy rate: 11.0%.
  • Net absorption: 4,999 sf.
  • Average asking rent: $26.10 psf.

Contact Information

• Cushman & Wakefield
  200 W Cesar Chavez St
  Suite 250
  Austin, TX 78701
  cushmanwakefield.com
  For more information, contact:
  Jeff Graves
  Market Director, Research
  Tel: +1 512 474 2400
  Email: Jeff.graves@cushwake.com

About Cushman & Wakefield

Cushman & Wakefield is a global real estate services firm with 48,000 employees across 400 offices and 70 countries. In 2017, the firm generated $6.9 billion in revenue from core services including property, facilities, and project management, leasing, and capital markets. The firm provides insights and services to real estate occupiers and owners.