Although Austin’s housing market has managed to remain strong when compared to other markets throughout the country, the city has seen a little trouble when it comes to the office space market. In fact, many landlords have been looking at the possibility of having to lower rent in order to draw in and retain tenants. While this may be good news for businesses looking to save some money on office rental, it is not particularly good for landlords.
Fortunately, some experts believe that Austin may be on its way to bouncing back from its minor stumble. In fact, the Austin Business Journal reports that vacancies within the central business district went from 16.1% in the first quarter to 15.5% in the second quarter. In addition, the average rent for downtown office space still rose by $1.29 in the last quarter and is now averaging $31.29 per foot.
"That's good, healthy growth for downtown," said Ford Alexander, who is a partner with Oxford Commercial. "The tendency is when you're downtown, you want to stay downtown. And that's what we're seeing, expansion of those tenants."