The Austin office market experienced another period of negative absorption, registering (839,994) of net demand. Vacancy increased quarter-over-quarter by 240 basis points (bps) to 16.7% and availability increased by 360 bps to 22.9%.
Average Full-Service Gross asking rates largely remained flat in Q4 2020, due to revised OPEX estimates for the year.
Sublease space continues to spike due to a combination of business closures and space need reconsiderations.
The trend of slowing development activity continued into Q4 2020 with the overall pipeline falling to below 6.0 million sq. ft. for the first time since Q2 2019. Preleasing activity has declined as well, falling to 36%.