Austin experienced another quarter of negative market fundamentals as vacancy continued to increase. The sublease market continued to expand, increasing more than 400,000 sq. ft. quarter-over-quarter to 1.65 million sq. ft.
Average Full-Service Gross asking rates increased to $39.36 per sq. ft., driven largely by increased OPEX averages throughout the market.
Vacancy throughout the metro increased 150 basis points, from 12.8% in Q2 2020 to 14.3% in Q3 2020.
The effects of the current economic conditions have spread to the development pipeline as new construction activity appears to have halted. There are 29 projects, totaling approximately 6.1 million sq. ft., currently under construction.