• As 2018 draws to a close, absorption levels in the office market completely rebounded from the flat first half of the year, surpassing 1.3 million sq. ft. of positive net demand for the year. 

  • As vacancy slipped below 10% and citywide average asking rates climbed to a new historic high, developers demonstrated their continued faith in Austin by kicking off an additional 500,000 sq. ft. of new construction.

  • End of year absorption activity registered 723,773 sq. ft. of positive net demand, bringing the annual total to 1,380,173 sq. ft.; this is the 5th year in a row that Austin has seen yearly absorption crest 1 million sq. ft.

  • Vacancy rates decreased 50 basis point from 10.2% in Q3 2018 to 9.6% in Q4 2018. 

  • The Full-Service Gross asking rate for Q4 2018 was $36.64 per sq. ft., a new record high for the Austin market.

  • Tenant demand remains robust leading into 2019, with more than 9 million sq. ft. of tenant demand currently in the market.