Since the third quarter of 2019, there has only been one three-month window—the fourth quarter of 2019—in which the office vacancy dipped in Northwest Austin, according to the newest “Austin Market Report” by Aquila Commercial.
Overall, the total vacancy rate in the Northwest Austin market has increased from 6.7% in the third quarter of 2019 to 13.9% in the second quarter of this year.
Despite the steadily increasing vacancy rate, the price per square foot for office space in Northwest Austin is also climbing quarter over quarter, according to the new Aquila report.
Since the third quarter of 2019, the asking price per square foot of office space in the Northwest Austin market has increased by 2.44% and now sits at $44.46 per square foot.
The new Aquila report shows there are 13 office developments across the Northwest Austin market that have more than 50,000 square feet of total vacant office space available, either through direct vacancies or available sublet space.
Two more office towers in The Domain—Domain Tower 2 and Domain 2.5—are under construction and will ultimately deliver 330,000 square feet and 59,446 square feet of office space, respectively. According to the Aquila report, neither of those developments have pre-leased any office space.
The Northwest Austin market is still outpacing the office space market citywide, however. Aquila reports the citywide total office vacancy rate for the second quarter of this year was 15%.