July 18, 2019
While numbers might have differed when it came to Austin’s Q2 2019 numbers, CBRE, Cushman & Wakefield and NAI Partners agreed on one thing: Construction has been at record-breaking levels — and so has absorption.
CBRE researchers noted that absorption has been driven by “tenants occupying pre-leased space in newly-constructed buildings.” More than 50% of the development pipeline has already been taken, CBRE added. Developers are moving quickly to keep up with demand which, according to NAI Partners’ analysts, was “five times the amount of supply delivered during the second quarter.”
Cushman & Wakefield noted that Google, Facebook, Apple and other tech companies taking space in Austin has led to “thousands of other start-up companies looking to grow their own footprint . . .” Even in the face of continued construction, continued demand will mean that “asking rates and occupancy levels should continue to rise,” Cushman & Wakefield analysts said.
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