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Construction activity continues to accelerate. The Austin office market vacancy rate stands at 9.0% nearing the end of the second quarter, with year-to-date net absorption at 332,000 sq. ft. and deliveries at 1.3 million sq. ft. Rocketing construction activity continues, with the amount of space under construction at 4.6 million sq. ft., including 2.8 million sq. ft. (62.6%) of that space already spoken for. The quoted overall average full-service rent is at $34.16 sq. ft., down $0.31 from $34.47 at this time last month.
Austin artificial-intelligence startup expands. Mythic Inc. has signed a 17,256-sq.-ft. lease at 1905 Kramer Lane, growing out of its current 2,600-sq.-ft. space at Midtown Commons. The larger Kramer Lane space will allow Mythic to build a high-tech lab to test its prototype chips and fulfill its plans to expand its team from 22 employees to 45 employees. The company’s hardware and software platform turn devices into professed intelligent assistants, unconnected to the cloud.
Economic activity held steady in April. The local labor force expanded at a strong 4.7% annualized pace year to date, while Austin’s unemployment rate remained at a low 3.0% for a third consecutive month in April. This is well below the state and U.S. jobless figures at 4.1 and 3.9%, respectively. The Austin Business-Cycle Index grew at 7.0% in April. Although above the 6.0% long-term pace, growth softened slightly compared with March and has decreased since hitting its high point in the second half of 2017.
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