Integra Realty Resources: State of the Market
The lack of significant new retail construction will continue to keep current vacancies low and rents increasing for the foreseeable future, says Integra Realty Resources senior managing director Randy Williams. He is also seeing small new strip centers with national tenants selling at a premium over this time last year, often at prices substantially higher than replacement cost. In the multifamily sector, the strongest market continues to be the Central Business District and Central submarkets, with the majority of new development achieving a stable occupancy within a year or less. Absorption remains strong in submarkets outside of these districts, with consistent occupancy levels averaging 94%, a 1% drop from the previous year’s averages. Tech companies are still driving the majority of office demand in Austin. Most new construction is taking place in Southwest, Northwest and CBD submarkets, and many of the new buildings will come on line substantially pre-leased. For more info on our Bisnow partner, click here.