Our “Boots on the Ground” view point is the voice of our experts, who have broken down the market data and compared it to what they are seeing for themselves. This is their take on what the numbers actually mean for the Austin office market.
When you look at the numbers, the office market was relatively flat in Q1 2018. Absorption was negligible, vacancy trended up slightly and rates increased. Our team believes that this “lack of activity” was based primarily on standard cyclical activity (i.e. lack of moves and deal-push over the holidays). On the ground, however, we’ve seen an uptick of activity and are tracking a large number of medium and large companies either new to Austin or making considerable expansions. Landlords have noticed this as well and it has resulted in a slight uptick of rates even though vacancy went up and absorption went down. Operating expenses saw another increase, but thankfully the jump was relatively minor in comparison to recent quarters.