Despite more than 3 million sq. ft. coming online, Austin office vacancy expected to continue to remain tight.
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Austin Office Vacancy 8.6%
Under Construction 4.4M
Austin Office Market
As we move into 2018, Austin continues to experience a healthy commercial real estate market across all property types. In 2017, the Austin office market ended the year with strong activity.
Tenants in the suburban market will start to see additional office options available in 2018 with 3.3 million sq. ft. of office space being delivered, and an additional 1.0 million scheduled for completion in 2019, which will provide some relief to tenants that are willing to commit to a lease for the next five to seven years.
However, even with that sizable chunk of new space, our forecast model shows only a modest increase in vacancy in 2018, up toward 11%. Beyond that, we expect a decline toward the 10%-range in 2019, and still further tightening thereafter.
To discuss long-term occupancy strategies in an Austin office market with increasingly limited options, call NAI Partners at (512) 580-6025.