Office Space market analysts say Austin’s 3rd quarter saw a major boost from first half.
Commercial real estate firm CBRE’s Tim Donohue said vacancies are down and square footage costs jumped by $1.10 from this time last year. However Austin is still a bargain to some, “Relative to Mid-town Manhattan, in the loop in Chicago and Soma in San Francisco, we’re still paying below market rents,” said Donahue.
Austin’s third quarter has outperformed most and has developers expanding construction. Donohue said for the first half of the year, the Austin market was in lock step with the rest of the country. But this third quarter saw a wave of demand from within the Austin market and from large coastal cities looking for their own space in the area.
Donohue said he does alot of transactions around the country and people continue to be interested in Austin as there’s a high amount of intellectual capital and relatively low prices for housing and office space.
Donohue expects the fourth quarter to remain bullish, expecting some major lease signings and has an eye on Southeast Austin.
(Photo:By Monkey Business Images)
