Austin office quarterly absorption, asking rates hit historic highs

​​​​AUSTIN – As the first half of the year closes out, the Austin office market registered a historic high in absorption levels, surpassing 1.1 million sf of positive net demand.

According to CBRE, that absorption was largely driven by tenants occupying preleased space in newly constructed buildings.

With resounding tenant demand and ever-increasing operational costs, the citywide average asking rent rose to $37.79 per sf, another historic high.

​The increase in asking rents this quarter was softer than previously seen, which could suggest that rents are starting to level out throughout the market.

Vacancy fell 30 basis points to 9 percent. Preleasing activity in new product has remained strong, with more than half of the development pipeline having been taken.