The overall vacancy rate is at 12.1%, up from Q3 2020 at 11.6%, and a year ago at 9.4%.
Vacancy at 12.1%. The overall vacancy rate is at 12.1%, up from Q3 2020 at 11.6%, and a year ago at 9.4%. The increase in vacancy is due in part to 2.3 million sq. ft. delivered to the market so far in 2020, of which 22% is vacant. In addition, there is 7.3 million sq. ft. currently under construction, with 55% of that space available for lease. The vacancy rate for Class A properties is at 14.0%, up from Q3 2020 at 13.4%, although up more significantly from October 2019 at 10.2%. The Austin office market has recorded net absorption (move-ins minus move-outs) of negative 376,000 sq. ft., down from positive 936,000 sq. ft. at this time in 2019. The asking price for office properties is currently at an average annual rate of $38.44 per sq. ft., up from this time last year at $37.08 per sq. ft., due primarily to the new product added to the market.
Everi Games signs full-building lease. Everi Games Holding doubled the amount of space at its Austin headquarters, inking a deal to extend its full-building lease within the Wild Basin Atrium Park for 5 years. Everi renewed its lease at Building B, a 51,000-sq.-ft., two-story office building at 206 Wild Basin Road. It is home to the gaming division of Everi Holdings, a Las Vegas-based company that produces slot machines and other games.
Available sublease space doubles. The coronavirus pandemic and subsequent work-from-home directives have reduced demand for office space. As a result, the Austin office market has been flooded with competing sublease space hitting the market, with the current total at 3.6 million sq. ft. of available sublease space up 136% since the end of last year at 1.5 million sq. ft.
Director of Research
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