Austin a 'Rich Bidding Environment,' According to Latest Savills Studley Report
Austin’s office lease activity plummeted 15.2%, according to Savills Studley’s Q4 2015 report. But it's not from softness in the market. The firm attributes the drop to the metro's rich bidding environment and rising costs of doing business. Preemptive strikes on space and a dramatic upturn in off-market deals show that while space is very limited, it's still in very high demand. Because of this, Austin landlords are extending leasing flexibility to only the most creditworthy tenants.
The region’s asking rent increased 1.2% for the quarter and jumped 9% year-over-year, with Class-A asking rent escalating .6% and 8.9%, respectively.
Moving forward, the biggest threat to Austin’s dominant economic growth is its transportation infrastructure. If the booming city wants to continue its growth, it must improve mass transit and roadways.
Pictured above are Savills Studley's Mark Russell, Alecia Burdick and John Scoblick at The Capital Factory's recent Op Shop event.