Office, Industrial Rents Spike
Class-A and -B office rental rates in Austin are up more than 30% in the last 10 years (Class-A from $21/SF to $34/SF gross and Class-B from $17/SF to $24/SF), says NAI Houston partner Griff Bandy. Over this same 10-year span, Class-A and -B office inventory experienced more than 1.5M SF positively absorbed on average each of those 10 years, says Griff (here with his son). But wait, there's more: more than 3M SF of office space is under construction, too. He's also bullish on San Antonio, where industrial rental rates are at all-time highs as well. In San Antonio, the industrial sector is burning up the market in support of the Eagle Ford Shale play. Griff is also the partner-in-charge leading the launch of NAI Global into Austin and San Antonio, where NAI is looking to hire market leaders/partners in both cities.