RENTS AND VACANCY RATES RISE

AUSTIN (Austin American-Statesman) – Rents for top-tier office space reached their highest level since early 2001, while vacancies also rose from the previous quarter, when they had reached their lowest level in six years, according to Oxford Commercial.

Rents for Class-A space averaged $29.52 per square foot (psf) in this year’s second quarter, up 23 percent from $23.92 a year ago, while vacancy dropped to 11 percent from 15.9 percent during that same time.

Rents for all types of office space continued their two-year climb to the average of $24.68 psf.

The overall vacancy rate stood at 13.6 percent, up from the previous quarter’s 11.8 percent but still down from 17.4 percent in mid-2006. The vacancy rate increase was the first after three consecutive quarterly declines.

Central Texas’ strong job growth, which was at a 4.1 percent annual rate in May, continues to drive demand for office space. Projects currently underway will add more than 1.3 million square feet this year.