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Leasing Slows Down, But Not a Cause for Concern

AUSTIN, TX—Savills Studley observes that while rental rates and occupancy are near an all-time-high, a drop in leasing volume may hint at decelerated growth for 2016.

By Lisa Brown | lisabrown | Updated on May 12, 2016

John Scoblick Scoblick says if it is a genuine slowdown, it will not adversely impact the market.

AUSTIN, TX—While signs point to a slowdown in leasing, it is too early to tell what type of impact that will have on the market. For now, tenant rep Savills Studley says this makes conditions more favorable to landlords, making it more difficult for growing companies to find space. New companies and startups will face stricter leasing requirements as landlords can pick and choose which companies will be the recipients of the leased space.

John Scoblick, corporate managing director at Savills Studley, tells GlobeSt.com: “It’s like when the doctor says ‘let’s keep an eye on this’. We don’t have enough data points to say this is the trend, and it may be an anomaly. While deal flow has dropped, there is no impact on vacancy. This is not enough to impact the market one way or another. If there is a cooling down, the tech companies previously overleased and this space could be filled.”

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