Real Estate

Downtown Austin Office Rental Rates Reach Historic High

Rental rates reached historic highs last quarter.

Downtown Austin’s office rental rates reached historic highs the past quarter - increasing 13.2 percent year-over-year in July, August and September, according to a data report released by Cushman & Wakefield/Oxford Commercial.

According to the report, rental rates increased in the third quarter, going up from $29.17 per square foot to $33.02. In downtown Austin’s central business district, Class A office space - space marked as the best in the market - increased the most, to $48.08 per square foot, an 11.5 percent year-over-year increase.

“There’s a very high level of demand by office tenants to locate and grow in Austin, and the office sector continues to feel it,” said Rick Whiteley, CWOC partner, in a statement to Community Impact Newspaper. “Developers continue to respond with lots of new product, and tenants continue to absorb the new supply.”

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The report also shows that 1.8 million square feet of office space has become available so far in 2015, compared to the entirety of last year, when 1.7 million square feet of office space came online.

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