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LEASING DOWN SLIGHTLY
Tenants leased 1.4 million square feet (msf) in the second quarter, and have leased 7.3 (msf) in the four most recent quarters, well above the long-term market annual average.
AVAILABILITY JUMPS
The market's overall availability rate rose by 170 basis points to 14.0%. The Class A availability rate spiked by 130 basis points to 15.2%.
RENTS DOWN SLIGHTLY
Class A asking rent for the entire region fell by 1.6% quarter-on-quarter, averaging $39.62 in the second quarter. Class B and C asking rent averaged $29.04, unchanged from a year ago.
SALES DOWN
Sales volume during the last six months (through May) totaled $510 million, down by 54% from the $1.1 billion during the previous six months.
"Top tech firms in Austin are taking different routes to secure additional space for their growing workforces. Some are expanding on corporate campuses, others are making aggressive moves on future development sites. In general, the competition for space is becoming as fierce as the battle for talent."
Brad Hauser, Research Director