posted on April 08, 2010 19:44
Austin's office vacancy rates increased for the 11th consecutive quarter in the most recent three months, but experts expect that to change as new construction dries up.
Oxford Commercial reported Austin vacancy rates hitting an average 22.1 percent across all classes and areas in the first quarter 2010, compared with 20.3 percent the same time last year. Rents also continued to depreciate reaching an average $25.15 a square foot, the lowest since the second quarter 2007.
Round Rock reported the highest vacancy rate at 50.98 percent, followed by southeast with 28.01 percent. The south central area reported the lowest rate at 5.12 percent, followed by the central district with 14.98 percent.
"”Construction has completely stopped. Austin has had a significant amount of office buildings completed in the past few years, but as of right now there aren’t any office buildings under construction. This will result in vacancy leveling off and beginning to decrease as demand picks up over the next couple years," Oxford Research Director Taylor Pearce said.
Austin Business Journal | April 7th, 2010