Workers Returning to Austin Offices, Average Rents Up
Leasing volume increased in the first quarter by 44% to 2.1 million square feet compared to 1.5 million feet this same time last year. The space availability at the end of the second quarter of 2022 sat at 18.6%.
A quarterly NAI market survey reports that the Texas capital has already drawn 38 corporate expansions or relocations in the first half of this year. A highlight from Q2 2022 was a 114,000 square foot lease signed by streaming television startup, Atmosphere. It took six times more space in the Bouldin Creek office building than it had at its office on Congress Avenue. Also, Snapchat signed a lease for two floors at 405 Colorado St for 38,000 square feet.
Austin’s full-service average asking rents are at $41.54 per square foot, up 4.5% from this time last year. The asking rate average for Class A space is $47.07 while Class B is averaging $33.35 per square foot.
Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.