The final year of the last decade saw a record influx of delivered construction to the Austin office market. Twelve new projects delivered in Q4 2019 totaling 1.03 million sq. ft., bringing the yearly total to 3.1 million sq. ft. .
While absorption fell flat in Q4 2019, the annual absorption of 2.1 million sq. ft. was a mere 7,000 sq. ft. shy of setting a new record.
The Austin office market grew by leaps and bounds in 2019, expanding from 51.5 million sq. ft. of product in Q1 2019 to 54.6 million sq. ft. in Q4 2019.
In a rare instance for the Austin office market, the citywide full service gross asking rate remained $38.89 per sq. ft., carrying over from Q3 2019.
Vacancy increased 80 basis points from 9.9% in Q3 2019 to 10.7% in Q4 2019; this movement was driven by both flight to quality from older product types and the delivery of 12 new buildings that were 72% preleased.
Unemployment fell to 2.7% in October 2019, well below both the Texas average of 3.4% and the national average of 3.5%.