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LEASING INCREASES
Tenants leased 1.9 million square feet (msf) in the first quarter, and have leased 6.7 (msf) in the four most recent quarters, well above the long-term market annual average.
AVAILABILITY FALLS
The market's overall availability rate decreased by 130 basis points to 13.2%. The Class A availability rate fell by 230 basis points to 14.1%.
RENTS RISE
Class A asking rent for the entire region increased by 6.7% year-on-year, averaging $36.40 in the first quarter. Class B and C asking rent averaged $30.20, up by 9.4% year-on-year.
SALES DOWN
Sales volume during the last six months (through February) totaled $763 million, down by 16% from the $911 million during the previous six months.
"Despite permitting constraints, developers have been moving ahead with projects, not only in the CBD, but also in Austin's 'second downtown' at the Domain. And, they have been rewarded with significant pre-completion leasing activity."
Alan Peters, Senior Managing Director