Tenants leased just under 900,000 sf, falling below 1.0 million square feet (msf) and the third consecutive quarter with a decrease. Deal volume totaled nearly 6.0 msf in 2018.
CLASS A AVAILABILITY RISES
Following a sharp decline in the third quarter, the region’s Class A availability rate rose by 50 basis points to 13.6%. The overall availability rate jumped by 70 basis points to 13.2% and has spiked by 130 basis points compared to year-end 2017.
Class A asking rent for the entire region rose by 2.9% to $40.86. Class B and C asking rent averaged $30.39, a 7.9% spike from a quarter ago.
Office property sales during the first eleven months of 2018 totaled $1.2 billion, a 38% decrease compared to the same period of 2017.
"Apple’s $1-billion HQ2 expansion overshadowed any sting associated with being bypassed by Amazon. Austin was already Apple’s second-largest outpost domestically, the innovator will more than double its workforce and solidify its position as Austin's top employer."Brad Hauser, Research Director