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Booming construction activity continues. The Austin office market vacancy rate dropped to 8.2% midway through the first quarter, with year-to-date net absorption at 423,698 sq. ft. and deliveries at 573,250 sq. ft. Booming construction activity continues, with the amount of space under construction at 4.0 million sq. ft., including 1.6 million sq. ft. (40.9%) of that space available for lease. The quoted overall average full-service rent has remained elevated at $34.70 per sq. ft.
Construction begins on trendy East Austin project. The Foundry, a 3-story, 95,000-sq.-ft. creative office and condo building at 310 Comal Street, near I-35, is in the works. DPR Construction will construct the building with a modern warehouse look, leasing 30,000 sq. ft. for its own offices. Completion of the project is scheduled for March 2019. DPR Construction is also building Third + Shoal, a 29-story office tower in Austin’s central business district.
Online job search firm leases new 11-story tower. Domain Tower, an 11-story office building under construction at the Domain in North Austin, will be leased in its entirety to online job search firm Indeed. Domain Tower is scheduled to open in the Fall of 2018. Indeed is following in the footsteps of companies that are experiencing substantial expansion in Austin, including Amazon, Facebook, Google, HomeAway, and Oracle.
Austin economic growth remained robust in December. The Austin unemployment rate held firm at 2.8% in December 2017, well below the state level at 3.9%, and the U.S. rate at 4.1%. Job growth accelerated at a 5.1% annualized rate over the fourth quarter 2017. In addition, there was strong hiring in professional and business services, especially for temporary workers, which may be a gauge of increased full-time hiring in the near future.
Director of Research
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