June 16, 2017
Despite a slight rise in vacancy, the Austin office market remains among the nation’s strongest. The market’s rise to prominence is reflected by the fact that two Austin-area companies earned spots on the Fortune 500 list, including Round Rock-based Dell Technologies (No. 41 with $64.8 billion in annual revenue), and Austin-based Whole Foods Market (No. 176 with $15.7 billion in annual revenue).
Net absorption for the overall Austin office market stands at positive 700,937 square feet year-to-date, according to the NAI Partners’ June report. Direct space absorbed was 872,290 square feet, which was more than enough to balance the negative 171,353 square feet from sublease space.
Deliveries year-to-date remained steady at nearly one million square feet, of which roughly 88% is leased. The construction pipeline has 196,173 square feet underway across three properties located in the South and Southwest submarkets.
Photo Courtesy of NAI Partners, Photo Credit Getty Images