Austin, the Texas State Capital, has over the past half-dozen years been one of the fastest growing cities in the nation. Austin residents enjoy a higher quality of life than most cities of its size, and the city has been named as one of the “Best Places to Live“ by Money Magazine in 2006.
Austin is a center of major high-tech companies, and has attracted a large number of small independent firms that have, in addition to the larger companies, created a steady and strong demand for Austin commercial real estate. Commercial real estate developers in Austin are focusing big time on mixed-use projects, and condo hi-rises; the Four Season Residences and the Villagio Austin mixed-use project being prime examples.
Austin Office Space
Rapid expansion and high population growth within Austin’s business community has outpaced the ability of developers to provide sufficient Austin office space to meet the demand. Downtown redevelopment projects and other projects currently in the works will lessen the competition for vacant space, but the demand is expected to remain strong throughout 2008 and well into the following year.
Austin Industrial and Warehouse Space
The 2007 leasing figures for Austin industrial and warehouse space reflect a basically healthy market, with research and development flex properties and warehouse/distribution leading the demand. Austin’s overall industrial space availability in other areas was equal to the demand, reflected by a 7.4 percent vacancy rate at the end of the fourth quarter. Recent industrial space asking rents per square foot/year average from $6.87 to $7.94.