The cost to lease office space in the Austin Round Rock metro reaches a new record high. According to Commercial Real estate firm CBRE, in the 2nd quarter of 2019 the Metro Market square foot asking rate hit an all-time high of $37.79 and with an overall occupancy rate of 91{2db634631ef8bd3f096060bc7daa4fc6677d16e616113d8c02bec6b420e3105c}.
CBRE’s Tim Donohue said vacancy levels are incredible in the Central Business District. “Still hovering, for Class A office space, right around 5{2db634631ef8bd3f096060bc7daa4fc6677d16e616113d8c02bec6b420e3105c} which continues to drive the pricing pressures there for quality space.”
Some of the other most active metro sub-markets are the Northwest district near the Domain, along Research and the Arboretum, each commanding a healthy amount of demand with less than 10{2db634631ef8bd3f096060bc7daa4fc6677d16e616113d8c02bec6b420e3105c} availability, with more projects on the way.
East and Southeast Austin are also keeping Donohue’s interest. He explained, both areas went through a test phase of sorts when Oracle built its massive 570,000 square foot campus off Lakeshore and Lady Bird lane on the Southeast side, “so it validated that section of town where…occupiers of space realized that, they were still going to be able to attract and retain talent.”
(Photo:Shutterstock/roschetzkyproductions)
