AUSTIN, TX—Corporate expansions have intensified, elevating jobcreation, generating demand for office space and sparking aconstruction boom. In addition to the economic driversApple's campus has brought to the market, othermajor technology firms have made announcements, such asInteractions and Visa. All of theemployment announcements have developers bullish; with the 4million square feet of office space in the metro the highest totalon record since at least 2007, says a report by Marcus& Millichap Research Services.

Nathan Smith of Austin TenantAdvisors tells GlobeSt.com: "Job growth is strong,businesses in many industries appear to be thriving, and accordingto Census data we have over 100 people moving to the Austin metroarea every day. What that means is that finding office space tolease in Austin is getting harder and harder."

Indeed, tenant demand is absorbing much of the new space thatwill become available. In fact, a majority of the nearly 2 millionsquare feet delivered has been spoken for and pre-leasing ofbuildings slated for completion is also strong. The three largestoffice buildings that opened during early last year averaged 78%full, says Marcus & Millichap. Strong net absorption isprojected to continue this year, tightening vacancy and liftingmarket rental rates.