Uber and Lyft made their triumphant return, a major acquisition of Austin-based Whole Foods was announced and the city approved its first economic incentive agreement in years for Merck to build an IT facility. All in all, Austin had a good second quarter and it doesn’t stop at the news headlines. More than 275,000 square feet delivered this quarter, all of which are on the south side of the market. These buildings are Yeti’s build to suit project Lantana Ridge I & II (175,000 s.f. – Southwest), Galleria Oaks II (74,532 s.f. – Southwest) and 2301 E Riverside (29,205 s.f. – Southeast). There is still almost 1.9 million square feet under construction around the market, 32 percent of which has already been pre-leased.
Tenants in the market are still extremely active, with more than 12 million square feet of active requirements throughout the city. While a majority of this demand continues to focus on the CBD, Northwest and Southwest submarkets, many tenants have set their sights on smaller, secondary submarkets such as the East, South and North. These submarkets offer discounted asking rates and less competition for space while still being within close proximity to the urban core. Technology-related tenants are the most active, accounting for nearly one third of all active tenants in the market.
JLL is pleased to present its Q2 2017 Austin Office Market Reports. To view the reports, please click on the links below.
Austin Office Market Report
Austin Construction Summary