Annual Growth Rate Moves Closer to National Rate

Scoblick says construction projects are getting filled before completion.

AUSTIN, TX—The growth rate of Austin’s office-using employment has trended well above the national average for the past decade. However, the annual growth rate has now dipped below 4% as it moves ever closer to the national rate, according to Savills Studley‘s second quarter market report. Slower hiring and tenuous tech investors have reduced demand from the tech industry for Austin office space. However, rental rates remain at all-time highs and availability rates remain low given the lack of additional supply into the market.

John Scoblick, corporate managing director at Savills Studley, tells GlobeSt.com: “In the first quarter, there was increased availability of space but this was an anomaly. There are increasing rates while vacancy is still low. Construction projects are getting filled before completion. Everything is still hitting on all cylinders. However, even though we have good talent from the University of Texas and our low cost of living is attractive, the talent pool is getting thin.”