Search
 

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.