Austin Office Market
Annual full-service rental rates remain near record highs at $40.97/SF, marking a 0.2% increase year-over-year and just $0.01 below the record set during the fourth quarter of 2023. Direct availabilities rose by 20 basis points on a quarterly basis, pushing the overall vacancy up by 20 basis points quarter-over-quarter, to an all-time high of 24.1%. The under-construction pipeline has stabilized after a seven-quarter decline from the recent peak of 6.3 MSF recorded in the fourth quarter of 2022, with 2.7 MSF currently in progress. This shift reflects the effects of restrictive fiscal policy and rising building costs that have reverberated throughout the financial markets. Financial and political uncertainty have depressed total leasing activity down to 1.5 MSF, well below the 16-year third-quarter average of 1.8 MSF.
Download Austin Office Market Report 3Q24
Austin Industrial Market
The market realized 1.2 MSF of positive absorption in the second quarter of 2024, its third continuous quarter of over 1.0 MSF of positive absorption. Overall rental rates grew 11.5% year over year to $14.49/SF, 1.5% lower than the historic high set during the previous quarter. The construction pipeline recorded deliveries of 3.1 MSF in the second quarter of 2024, with 16.7 MSF currently under construction. Following new deliveries outpacing yearly demand for the previous two years, vacancy increased by 290 basis points year over year to 10.4%.
Download Austin Industrial Market Report 2Q24