The project, the first on Congress Avenue since 1987, begins as Austin's office vacancy rates are tracking higher. Another big office building, CarrAmerica's 448,870-sf 300 West Sixth is nearing completion with the first tenants poised to move in by the end of the year. Other class A buildings in the CBD have sizeable space available.
The city's overall vacancy rate was 16.1% at the end of the third quarter. Downtown, the direct vacancy rate is 8.8%, but balloons to 13.9% when sublease space is counted. Cousin's is eyeing that 8.8% figure, Tim Hendricks, the company's senior vice president of development in Austin, tells GlobeSt.com.
"I would not identify Austin with a 9% vacancy as full of vacant space," Hendricks says in response to a question. "We don't perceive downtown Austin as being in any type of critical condition at all. To the contrary, Austin has one of the most dynamic downtown's supported by a strong professional business community...We feel very good about Austin."
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