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Falling Occupancy Rates Hit Rents, Down 42 Cents Per SF

AUSTIN-Rising office vacancy has hit the pocketbook of building owners, with rent dipping 42 cents per sf between first quarter and Q2 closings. The average now rests at $27.15 per sf, with the CBD being hardest hit as rates plummet $4.20 per sf.

By Tim Green | Updated on July 23, 2001

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.

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