posted on July 17, 2011 14:12
The Austin commercial real estate market continued to tighten in the second quarter this year as vacancies decreased and rates moved up.
Oxford Commercial released its latest report on trends Thursday, showing a stronger market average across most classes and locations. The overall vacancy rate decreased to 19.08 percent, down from 21.45 percent during the same three months in 2010. It is at its lowest since the third quarter 2008.
The southwest market experienced the greatest year-over-year tightening, with vacancies falling to an average 13.85 percent in the last quarter from 20.84 percent last year. The vacancy rate in the Central Business District actually increased to 17.39 percent from 16.13 percent in the second quarter last year.
The Class A vacancy rate also fell year over year across all areas to 18.3 percent from 19.9 percent. Again, the Central Business District was the only area where Class A vacancies increased, rising to 15.95 percent in the second quarter from 13.85 percent during the same period last year.
The average rental rate for Class A space citywide was also up slightly year over year to $28.24 per square foot from $27.74. The Central Business District reported the highest average at about $37.94 per square foot. Across all classes, the rate decreased to $24.96 per square foot in the second quarter from about $25.14 in the same quarter last year.
Ashley Furness, 7/8/11, Austin Business Journal