Sublease up from 1.227 M to 1.282M sf an increase of 55K sf.
From the initial report approx 100,884 sf have been leased or removed from the report.
The SW subsector continues to lead the market with 454K sf which is 36% of the market.
The Average Class A rates citywide break out as follows:
Avg. NNN = $18.60
Avg. Gross = $22.14
Avg. FS = $21.00
For a breakdown by subsector please review the ‘Rate Analysis’ tab in the spreadsheet
The next report for 3/1/2009 will be out Monday, March 2nd. Thank you again for your support.
What we have seen over the last 6 months is the slowdown in the economy brought on by the financial collapse of mortgage backed securities. As to be expected serioius layoffs and downsizing of local corporations has brought on 500K sf increase in sublease space in the Austin Market. This does not even include the Freescale campus of 282K sf which has been added to the already swollen office market with a vacancy of 18% and rising.
We should all batten down the hatches because its only going to get rougher from here. My experience with previous markets is that even the smart operators get burned because of the domino effect of failed clients, slow paid or unpaid bills, and bankruptcy.
History will tell whether we can spend our way out of this financial crisis.