By Carey Eskridge
Sperry Van Ness just released its "Top 10 Markets to Watch" Report for the office sector. Austin made the list. The report considers factors such as population growth, office space inventory, vacancy, and rental trends to determine the areas with the greatest potential for income growth.
About six years ago, as the tech bubble was bursting and the Frost Bank tower was under construction, I had to wonder what was going to become of downtown. It seemed like it could go either way - the streets would be empty or the newest addition to the skyline would usher in a new era. As it turns out, downtown is exploding, and if this report is correct it won't be slowing down anytime soon.
WHY AUSTIN MADE THE GRADE
According to the report, Austin has some great factors to fuel further commercial interest.
- Austin had the highest relative population growth of all the
office markets. With so much competition,
the absorption kept the vacancy rate in a steady
decline.
- The vacancy rate is at 13.4 percent. As far as I can
tell, most of construction around town, however dramatic, is mixed-use
residential and retail development.
- The report predicts that office construction won't keep up with the demand through 2008, so the vacancy rate is expected to decrease by almost one percentage point in the coming year
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