https://www.bizjournals.com/austin/n...arket-can.html
Interesting factoids from ABJ, regarding downtown office occupancies.
Quote:
The [JLL Skyline] report looks deeply — and graphically — into downtown trophy buildings bigger than 200,000 square feet, and it outlines where space is available.
There’s not much. Even though the 18-story 5th+Colorado tower delivered coveted new office space last year, it’s not large enough to warrant a position in the Skyline Report. However, that delivery of 179,846 square feet likely impacted the occupancy figures a tad. According to the 2017 Skyline Report embedded above, the direct vacancy rate is up from last year’s low of 4.1 percent.
“That’s just a matter of timing,” said Jeff Coddington, senior vice president of JLL Capital Markets. “Space in downtown is highly desired and the direct vacancy will go down again.”
Rents continue a mind-boggling ascent with an average asking rate of $58.81 per square foot, up from $53.67 per square foot last year.
There’s another $4 to $7 per square foot added to that accounting for escalating operating costs and rapidly rising property taxes.
“Some (tenants) are waving white flags,” Coddington said.
But for every tenant that’s ready to move to cheaper digs there are four or five lined up to take their space.
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As we've been talking about a new round of taller towers downtown, I'd been wondering whether where we are from a demand standpoint. Does the market really want that much more commercial/office space? Has that been one of the secret factors keeping our towers so limited in height?
Turns out not so much.
