Job Growth Fuels Market for Austin Office Space
published on June 29, 2012
As Austin’s current rate of job growth is making office space tight, it’s likely a co-worker might take your Swingline stapler, or employees may find their desks moved four times in one year. There’s no need to set the building on fire, though. Demand for office space is fueling new construction and expansions to larger campuses for many corporations.
In the past months, the residential real estate market isn’t the only enterprise seeing an uptick in sales and growth. The office market is feeling renewed vigor as employers seek to house their new hires. Oxford Commercial, a company that tracks the office market, reports that an influx of new businesses and expansions of existing businesses is causing occupancy and rent rates to rise in Austin. The growth is especially notable in Downtown Austin and Southwest Austin, which could be among the first areas to see major office construction in Central Texas since the recession in the near future.
“The rise in demand for office space is good news for all of Austin,” said Austin Realtor Brian Talley. “It’s indicative of our high employment rates and a strong economy and results in a stronger housing market as more people move here for work or are elevated to higher paying positions that make home ownership attainable.”
Rental rates of Class A office space, the Austin luxury home of office space, were up almost 80% from the beginning of 2011, with an 85% occupancy rate. In February, Austin generated 25,800 new jobs, according to the Texas Workforce Commission, with many of them at the professional level, specifically technology firms, fueling the demand for office space. Some of the companies propelling growth include local firms Bazaarvoice and Spiceworks, as well as national brands Apple, VM Ware, Legal Zoom, and Facebook.
Southwest Austin has shown the most improvement since the downturn of 2008, now with an occupancy level at 92%. Downtown office rentals also have strengthened alongside the construction of new condos, high rise apartments, and entertainment venues, which can influence a company’s decision to locate downtown. If you are new to Austin because of job relocation, an Austin Realtor can help start an Austin home search that can land you next to the best window in the city, one where you can see squirrels that are married.
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