AUSTIN, Texas — Amid continued job growth in Central Texas, the Austin-area office market ended 2018 on a high note, with rents for top-tier space climbing to a record high, the latest figures show.
Local office brokers say they expect the trend to continue in 2019 if the economy continues to perform well.
Rents for Class A space averaged $41.09 per square foot per year, commercial real estate services firm Cushman & Wakefield Austin said in its fourth-quarter report. That’s the highest on record for top-tier space and up from $39.09 at the end of 2017, according to Cushman & Wakefield, which tracks the local office market.
Class A space was 90.6 percent full as of the end of 2018, a tick up from 90.2 percent at the end of 2017, Cushman & Wakefield found.
“Even with the recent uncertainty over the national economy due to an unstable stock market and concerns over foreign trade, office leasing activity, construction and development activity all remain robust with vacancy rates at a healthy level and asking rates at record highs,” said Jeff Graves, director of research for Cushman & Wakefield Austin.
For more on this story, visit the Austin American-Statesman.