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The overall vacancy is at 10.0%, up from this time last year at 8.6%, due in part to the 609,000 sq. ft. of vacant space delivered to the market so far in 2020—37.9% of the total 1.6 million sq. ft. completed.
Vacancy at 10.0%. The overall vacancy is at 10.0%, up from this time last year at 8.6%, due in part to the 609,000 sq. ft. of vacant space delivered to the market so far in 2020—37.9% of the total 1.6 million sq. ft. completed. Of the 7.7 million sq. ft. currently under construction, 55.3% of that space is available for lease. The vacancy rate for Class A properties is at 11.8%, up from 7.5% this time last year. The Austin office market has recorded net absorption (move-ins minus move-outs) of 852,000 sq. ft., down slightly from 1 million sq. ft. in 2019. The asking price for office properties is currently at an average annual rate of $39.08 per sq. ft., up from this time last year at $35.85 per sq. ft., due primarily to the new product added to the market.
Paloma Ridge wraps up. The third and final building at the Paloma Ridge office park in the Lakeline area of Northwest Austin is completed. About half of the three-story, 165,714-sq.-ft. building is preleased to tenants including Hewlett Packard Enterprise, LPL Financial, and ZVRS. Hewlett Packard and LPL Financial have started buildout of their spaces.
Austin economic indicators. The Federal Reserve Bank of Dallas reported the Austin economy continued to contract in April due to the impacts of COVID-19. Austin’s unemployment rate climbed to 11.5% in April, the highest level since the data series began in 1990. The unemployment rate in Texas (12.8%) and the U.S. (14.7%) also reached historical heights. Initial claims for unemployment began to slow, marking the third consecutive week of declines
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