Availability levels off some, asking rents face upward pressure
Availability in Austin is holding fairly flat, with the overall availability rate declining just 20 basis points over the year to 11.9%. Class A availability saw a slightly larger drop, declining 80 basis points year-over-year to end Q1 at 12.1%. In Austin’s CBD submarket, availability dipped below 10.0% for the first time in four years, declining 120 basis points year-over-year to 9.1%. Asking rents are trending upwards on the whole, with overall rents increasing 2.5% year-overyear to $36.64 per square foot (psf). Class A rents increased 3.6% over the year to $41.87 psf. As tech and coworking tenants continue to drive demand – and pay above-market rents for top-quality space – asking rents are expected to face continued upward pressure.