The latest office survey from Newmark for the third quarter of 2023 reveals positive trends in the Texas office markets. In Austin, annual full-service asking rental rates have increased by 3.4% to an average of $41 per square foot (SF). However, occupancy has decreased slightly to 22%. The construction pipeline has also seen a slight decrease with just over five million SF currently in progress. Leasing activity is at its lowest point in 16 years.
In Dallas, annual full-service asking rental rates have reached a historical high of $29.49/SF with a year-over-year increase of 2%. Despite this growth, occupancy has declined for the fourth consecutive quarter and now stands at 24.3%. The under-construction pipeline remains steady with nearly three million SF currently being built.
Houston’s office market also saw an increase in annual full-service asking rental rates which reached an all-time high of $30.24/SF – up by .5% compared to last year’s figures.Occupancy levels rose as well but still remain historically high at25%. The under-construction pipeline remains stable while leasing activity reflects significant decreases both year-over-year and quarter-over-quarter.
This report highlights that Texas continues to be a strong market for commercial real estate investors and businesses looking for new opportunities.The post on Connect CRE discusses these positive developments without mentioning any specific organizations or initiatives.
