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Austin Absorption Heat Map
1. North/Domain ranked #1, absorbing a significant portion (37.9%) of the available space in its submarket. Seven of the nine major submarkets in the metro recorded overall positive net absorption in the second quarter, with North/Domain representing the highest total (361,707 sq. ft.). This was due in part to Indeed.com moving into 309,863 sq. ft. in the newly completed Domain TowerA; a deal the company inked in December 2017.
2. Northeast absorbed 31.4% of the available space in its area, claiming the #2 spot. This activity is a welcome change as the submarket has one of the highest overall availability rates at 17.9%. A significant transaction during the quarter involved 3M, maker of Scotch tape and other office supplies, moving 500 employees into 272,526 sq. ft. in Parmer Innovation CenterB from a corporate campus 15 miles away, on Riverplace Boulevard in Northwest Austin. 3M originally announced the move in the summer of 2017.
3. Southwest came in at the #3 position, absorbing 11.7% of the available space in its submarket. The submarket falls in the middle position for the amount of space absorbed, having recorded 203,000 sq. ft. A couple of significant move-ins included Lorenz & Lorenz occupying 12,746 sq. ft. at 1515 S. Capital of Texas HighwayC and Directive absorbing 11,656 sq. ft. at 9225 Bee Caves Road. Both leases were signed in Q1 2019.
Director of Research
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