A large-scale project that delivered in the Hays County submarket this quarter pushed the annual total of new developments to a historic high of almost 1.9 million sq. ft. Over the past three years, approximately 5.4 million sq. ft. of new projects were delivered to the market
Despite slackening market fundamentals, developers still seem bullish on the Austin market. The under construction pipeline ticked back above 1.0 million sq. ft. with 37% preleased.
Citywide average asking rents continued to decline from their historic highs in Q1 2019, falling to $9.80 per sq. ft. in Q4 2019. Flex/R&D rates rose $0.26 quarter-over-quarter to $13.36 per sq. ft., while warehouse rates fell from $7.97 last quarter to $7.79 per sq. ft.
Unemployment in the Austin metropolitan area fell to 2.7% in October 2019, well below the state average of 3.4% and the national average of 3.5%.