AUSTIN-Decreasing occupancy rates in Austin office buildings are being felt in rental rates. They dropped 42 cents per rentable sf to $27.15 in the second quarter from the first quarter, according to Austin-based Colliers Oxford Commercial's second quarter survey. It's the first drop since the 1999 third quarter when rates fell 10 cents per sf.
The biggest rate decrease was in the CBD, where class A space fell to $34.62 per sf from $38.42 per sf, a 10% drop. In the second half of 2000, the CBD's 97% occupancy rate helped drive overall CBD rental rates to $30.05 per rentable sf.
The survey put the citywide direct vacancy rate at 7.5% at the end of the second quarter, up from 5.7% at the end of the first quarter. Counting sublease vacancies, the vacancy rate was 14.7%, up from 8.9%.
The most popular submarkets, the far Northwest, Northwest and Southwest, had vacancy rates of 28.2% (up 13%), 13.6% (up 5.6%) and 8.6% (up 2.2%), respectively. Later this week, Angelos Angelou of Angelou Economic Advisors is to make a mid-year forecast in a rare revision of his annual January outlook.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
