Austin Market Overview | 4Q 2015
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AQUILA's Quarterly Overview of the Austin Commercial Real Estate Market.
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Austin Market Overview | 4Q 2015
- 2. CITYWIDE SUBMARKET MAP Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 3. CITYWIDE PERFORMANCE VACANCY VS. RENTAL RATESNET ABSORPTIONAVAILABLE SF VS. VACANCY RATE Quarter Net Rentable Area Direct Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 42,444,966 4,815,598 167,798 11.74% $33.47 2014 Q2 42,475,999 4,647,525 6,277 11.79% $33.44 2014 Q3 42,720,370 4,373,103 377,613 11.41% $33.67 2014 Q4 42,784,115 4,068,526 420,985 10.56% $34.78 2015 Q1 43,665,210 4,612,974 383,535 11.49% $36.27 2015 Q2 44,534,490 4,795,149 585,639 11.90% $35.60 2015 Q3 44,874,380 4,650,151 766,602 10.86% $36.36 2015 Q4 45,456,083 3,747,189 1,070,732 9.64% $35.81 * Absorption includes sublease space Numbers based on CBRE statistics 0% 3% 6% 9% 12% 15% 18% 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 85% 88% 91% 94% 97% 100% 0 250,000 500,000 750,000 1,000,000 1,250,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(Sqft) Net Absorption* Direct & Sublease Occupancy Rate 5% 7% 9% 11% 13% 15% $32.00 $33.00 $34.00 $35.00 $36.00 $37.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 4. Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 6. CBD OVERALL SUBMARKET PERFORMANCE VACANCY VS. RENTAL RATESNET ABSORPTIONAVAILABLE SF VS. VACANCY RATE Quarter Net Rentable Area Direct Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 9,084,414 1,032,112 17,164 11.81% $41.45 2014 Q2 9,084,414 1,021,461 (13,728) 11.96% $40.88 2014 Q3 9,252,285 1,041,014 153,098 11.90% $41.39 2014 Q4 9,252,285 802,517 227,661 9.44% $43.13 2015 Q1 9,768,770 1,135,835 139,236 12.81% $43.83 2015 Q2 9,809,755 870,240 291,638 10.20% $41.90 2015 Q3 9,809,755 672,222 232,375 7.83% $44.17 2015 Q4 9,732,884 631,228 3,066 7.07% $43.64 * Absorption includes sublease space Numbers based on CBRE statistics 0% 2% 4% 6% 8% 10% 12% 14% 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 84% 86% 88% 90% 92% 94% 96% 98% 100% (50,000) 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate 0% 3% 6% 9% 12% 15% 18% $39.00 $40.00 $41.00 $42.00 $43.00 $44.00 $45.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 7. Quarter Net Rentable Area Direct Available SF Sublease Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 5,637,136 618,961 4,210 86,100 11.05% $44.03 2014 Q2 5,637,136 576,465 25,189 21,517 10.67% $44.81 2014 Q3 5,827,916 483,868 81,356 227,210 9.70% $45.13 2014 Q4 5,827,916 503,540 69,160 (7,476) 9.83% $46.49 2015 Q1 6,344,401 421,858 55,200 612,127 7.52% $47.28 2015 Q2 6,466,952 479,092 40,409 80,108 8.03% $47.74 2015 Q3 6,466,952 370,193 38,822 110,486 6.32% $48.70 2015 Q4 6,471,834 237,718 55,748 120,431 4.53% $52.03 * Absorption includes sublease space CBD COMPETITIVE SET PERFORMANCE NET ABSORPTIONAVAILABLE SF VS. VACANCY RATE VACANCY VS. RENTAL RATES 0% 2% 4% 6% 8% 10% 12% 14% 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 88% 89% 90% 91% 92% 93% 94% 95% 96% (100,000) 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% $43.00 $44.00 $45.00 $46.00 $47.00 $48.00 $49.00 $50.00 $51.00 $52.00 $53.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 8. CBD OFFICE RENTAL RATE PROJECTIONS $15 $20 $25 $30 $35 $40 $45 $50 $55 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 FullServiceRentalRates($) Historic Rental Rate AQUILA Model 3% Job Growth 1% Job Growth 1% Job Growth 3% Job Growth Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 9. CBD OFFICE VACANCY RATE PROJECTIONS 7.5 8.0 8.5 9.0 9.5 10.0 10.5 11.0 0% 5% 10% 15% 20% 25% 30% 35% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 MarketSize(MillionsofSF) TotalVacancyRate(%) Market Size Historic Vacancy Rate AQUILA Model 3% Job Growth 1% Job Growth 5th + Colorado NorthShore Shoal Creek Walk 500 W 2nd 1% Job Growth 3% Job Growth Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 10. CBD COMPETITIVE SET BUILDING LIST Building Name Net Rentable Area Direct Available SF Sublease Available SF Asking Rental Rate Estimated OpEx 100 Congress 411,536 20,182 ↓ 2,177 ↑ $37.00 $20.84 ↑ 300 West 6th 454,225 1,421 0 ↓ $36.00 $21.75 ↑ 301 Congress 418,338 17,934 ↓ 0 $35.00 ↑ $17.95 400 West 15th 281,196 8,627 21,224 ↑ $24.50 $15.92 501 Congress 122,551 18,922 0 $32.00 $21.27 ↑ 515 Congress 263,058 7,568 ↓ 4,415 ↑ $32.00 $18.05 ↑ 600 Congress Ave. 503,951 13,187 ↓ 0 $33.00 $15.80 816 Congress 434,081 24,118 ↑ 0 $29.00 $17.59 ↑ Austin Centre 326,335 14,471 ↓ 10,874 ↑ $28.00 $17.65 ↑ Capitol Center 164,044 7,920 ↓ 7,245 ↑ $28.00 $19.51 ↑ Capitol Tower 172,837 0 0 $29.00 $16.52 ↑ Chase Tower 389,503 16,711 0 $31.00 $19.84 ↑ Colorado Tower 373,334 0 0 $34.00 $16.83 ↑ Frost Bank Tower 535,078 0 ↓ 0 $38.00 $21.75 ↑ IBC Bank Plaza 194,749 0 4,900 ↑ $30.00 $21.00 ↑ Lavaca Plaza 118,635 0 0 $32.50 ↑ $21.74 ↑ Littlefield Building 109,779 30,424 1,800 ↑ $29.00 $15.96 ↑ One Congress Plaza 518,385 44,055 ↓ 3,113 ↑ $40.00 ↑ $17.77 ↑ San Jacinto Center 406,279 0 ↓ 0 $40.00 ↑ $18.75 ↑ Scarbrough Building 130,789 12,178 0 $32.00 ↑ $17.96 ↑ Seaholm 143,151 0 0 $28.00 $12.00 Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 11. CBD DEVELOPMENTS & AVAILABILITY Building % Preleased Total SF Est. Delivery 500 W 2nd 42% 489,404 SF 1Q 2017 5th + Colorado 28% 179,000 SF 1Q 2016 NorthShore 100% 23,592 SF 1Q 2016 801 Barton Springs 0% 90,500 SF 2Q 2017 Shoal Creek Walk 42% 218,432 SF 3Q 2017 Building Units/Rooms Est. Delivery 5th & West 154 Units 4Q 2017 Aloft & Element 422 Rooms 3Q 2017 Fairmont 1,066 Rooms 3Q 2017 Hotel Indigo/Holiday Inn Express 300 Rooms 2Q 2016 Hyatt House Hotel 190 Rooms 4Q 2016 NorthShore 436 Units 1Q 2017 The Austin Proper 250 Rooms, 120 Units 2Q 2017 The Independent 370 Units 3Q 2018 Building Size/Units Use 405 Colorado TBD Office 604 W 6th Street 31,035 SF Office Austin American Statesman TBD Office Novare/Post Office TBD Office Rainey Gateway 355,000 SF Office Third + Shoal 338,279 SF Office Waller Creek Center 325,000 SF Office 70 Rainey 164 Units Multifamily Green Water Residential Tower TBD Multifamily Hotel Zaza/Gables 226 Units, 160 Rooms Hotel/Multifamily Building Available SF Max. Contiguous One Congress Plaza 44,055 SF 31,037 SF Perry Brooks Tower 1,409 (direct) + 28,000 SF (sublease) 22,400 SF (sublease)
- 12. CBD AVAILABILITY SKYLINE Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 14. VACANCY VS. RENTAL RATESNET ABSORPTIONAVAILABLE SF VS. VACANCY RATE NORTHWEST OVERALL SUBMARKET PERFORMANCE Quarter Net Rentable Area Direct Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 16,747,039 1,635,834 102,128 10.21% $29.20 2014 Q2 16,697,337 1,493,813 (12,658) 10.02% $29.89 2014 Q3 16,697,337 1,566,544 (103,939) 10.64% $30.65 2014 Q4 16,817,337 1,540,054 137,486 10.46% $30.83 2015 Q1 17,154,310 1,879,975 98,887 11.65% $32.06 2015 Q2 17,269,310 1,819,734 116,457 11.56% $32.74 2015 Q3 17,269,310 1,665,124 276,295 9.96% $33.26 2015 Q4 17,535,625 1,283,335 410,012 8.99% $34.14 * Absorption includes sublease space Numbers based on CBRE statistics 0% 3% 6% 9% 12% 15% 0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 5% 7% 9% 11% 13% 15% $25.00 $27.00 $29.00 $31.00 $33.00 $35.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate 85% 86% 87% 88% 89% 90% 91% 92% (200,000) (100,000) 0 100,000 200,000 300,000 400,000 500,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 15. Quarter Net Rentable Area Direct Available SF Sublease Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 12,293,184 1,050,027 135,810 56,257 9.65% $31.21 2014 Q2 12,242,690 1,030,332 246,257 (141,246) 10.43% $31.61 2014 Q3 12,389,252 911,833 321,739 189,579 9.96% $32.12 2014 Q4 12,845,611 1,197,426 320,587 171,918 11.82% $32.93 2015 Q1 12,931,909 992,203 292,334 319,774 9.93% $33.39 2015 Q2 13,120,924 897,208 284,035 292,309 9.00% $33.83 2015 Q3 13,310,232 1,129,335 287,248 (46,032) 10.64% $33.55 2015 Q4 13,831,583 1,135,749 235,206 566,979 9.91% $34.30 * Absorption includes sublease space NORTHWEST COMPETITIVE SET PERFORMANCE NET ABSORPTIONAVAILABLE SF VS. VACANCY RATE VACANCY VS. RENTAL RATES 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 0% 3% 6% 9% 12% 15% $30.00 $31.00 $32.00 $33.00 $34.00 $35.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate 87% 88% 89% 90% 91% 92% 93% 94% 95% 96% (200,000) (100,000) 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 16. Quarter Net Rentable Area Direct Available SF Sublease Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 6,106,452 433,079 55,206 (18,356) 8.00% $32.55 2014 Q2 6,106,452 476,360 109,332 (97,407) 9.59% $33.04 2014 Q3 6,253,014 401,651 157,535 173,068 8.94% $33.66 2014 Q4 6,474,987 445,544 121,157 214,458 8.75% $34.38 2015 Q1 6,553,774 447,850 71,595 126,043 7.93% $34.46 2015 Q2 6,742,789 389,248 63,891 255,321 6.72% $34.77 2015 Q3 6,719,697 407,169 76,078 (53,200) 7.19% $34.38 2015 Q4 6,938,611 322,314 93,200 286,647 5.99% $34.82 * Absorption includes sublease space ARBORETUM MICROMARKET PERFORMANCE NET ABSORPTIONAVAILABLE SF VS. VACANCY RATE VACANCY VS. RENTAL RATES 0% 2% 4% 6% 8% 10% 12% 14% 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 86% 87% 88% 89% 90% 91% 92% 93% 94% 95% (150,000) (100,000) (50,000) 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate 4% 5% 6% 7% 8% 9% 10% $32.00 $32.50 $33.00 $33.50 $34.00 $34.50 $35.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 17. Quarter Net Rentable Area Direct Available SF Sublease Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 2,453,857 276,447 29,559 8,688 12.47% $31.43 2014 Q2 2,453,857 241,923 46,956 17,127 11.77% $31.95 2014 Q3 2,453,857 211,437 92,007 (14,565) 12.37% $32.28 2014 Q4 2,688,442 389,788 127,233 21,008 19.23% $33.10 2015 Q1 2,690,750 207,238 179,538 132,553 14.37% $34.17 2015 Q2 2,690,750 181,807 152,245 52,724 12.41% $34.45 2015 Q3 2,690,750 193,874 135,899 4,279 12.26% $34.55 2015 Q4 2,690,835 173,907 79,703 76,248 9.42% $35.16 * Absorption includes sublease space SHEPHERD MOUNTAIN MICROMARKET PERFORMANCE NET ABSORPTIONAVAILABLE SF VS. VACANCY RATE VACANCY VS. RENTAL RATES 0% 4% 8% 12% 16% 20% 24% 0 100,000 200,000 300,000 400,000 500,000 600,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 75% 77% 79% 81% 83% 85% 87% 89% 91% 93% (40,000) (20,000) 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate 0% 4% 8% 12% 16% 20% 24% $30.00 $31.00 $32.00 $33.00 $34.00 $35.00 $36.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 18. Quarter Net Rentable Area Direct Available SF Sublease Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 3,732,875 340,501 51,045 65,925 10.49% $28.88 2014 Q2 3,682,381 312,049 89,969 (60,966) 10.92% $29.02 2014 Q3 3,682,381 298,745 72,197 31,076 10.07% $29.40 2014 Q4 3,682,182 362,094 72,197 (63,548) 11.79% $30.26 2015 Q1 3,687,385 337,115 41,201 61,178 10.26% $30.93 2015 Q2 3,687,385 326,153 67,899 (15,736) 10.69% $31.66 2015 Q3 3,899,785 528,292 75,271 2,889 15.48% $31.42 2015 Q4 4,202,137 639,528 62,303 204,084 16.70% $32.77 * Absorption includes sublease space FAR NORTHWEST MICROMARKET PERFORMANCE NET ABSORPTIONAVAILABLE SF VS. VACANCY RATE VACANCY VS. RENTAL RATES 0% 3% 6% 9% 12% 15% 18% 21% 24% 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 0% 3% 6% 9% 12% 15% 18% 21% 24% $26.00 $27.00 $28.00 $29.00 $30.00 $31.00 $32.00 $33.00 $34.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate 80% 82% 84% 86% 88% 90% 92% 94% (100,000) (50,000) 0 50,000 100,000 150,000 200,000 250,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 19. NORTHWEST OFFICE RENTAL RATE PROJECTIONS $15 $20 $25 $30 $35 $40 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 FullServiceRentalRates($) Historic Rental Rate AQUILA Model 3% Job Growth 1% Job Growth 1% Job Growth 3% Job Growth Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 20. NORTHWEST OFFICE VACANCY RATE PROJECTIONS 10.0 11.7 13.3 15.0 16.7 18.3 20.0 0% 5% 10% 15% 20% 25% 30% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 MarketSize(MillionsofSF) TotalVacancyRate(%) Market Size Historic Vacancy Rate AQUILA Model 3% Job Growth 1% Job Growth Domain 1 905 & 906 Broadmoor Domain 5 Braker Pointe III Domain 8 1% Job Growth 3% Job Growth Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 21. *Already existing—coming to market 2Q 2016 †Already existing—coming to market 3Q 2016 Building Total SF % Preleased Estimated Delivery Status 1 Domain 1 124,571 0% 1Q 2016 Under Construction 2 Domain 5 74,787 0% 2Q 2016 Under Construction 3 905 & 906 Broadmoor* 345,000 0% 2Q 2016 Coming to Market 4 Braker Point III†195,230 0% 3Q 2016 Coming to Market 5 Domain 8 291,000 0% 3Q 2017 Under Construction Building Total SF % Preleased Estimated Delivery Status 6 10721 Domain Dr. 308,000 0% Planned Planned 7 Amber Oaks Phase I 90,300 0% Planned Planned 8 Amber Oaks Phase II 90,300 0% Planned Planned 9 Amber Oaks Phase III 45,000 0% Planned Planned 10 Aspen Lake Three 128,700 0% Planned Planned 11 Four Points Centre Bldg 3 250,000 0% Planned Planned 12 Four Points Centre Bldg 4 80,000 0% Planned Planned 13 Paloma Ridge C 112,500 0% Planned Planned NORTHWEST OFFICE DEVELOPMENTS Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 22. Building Direct Available SF Sublease Available SF Total Available SF 1 7700 Parmer - Bldg B 31,500 - 31,500 2 7700 Parmer - Bldg C 23,693 - 23,693 3 Amber Oaks F 79,732 - 79,732 4 Amber Oaks J 6,245 33,147 39,392 5 Atrium Office Centre 20,340 - 20,340 6 Domain 3 - 20,816 20,816 7 Lakewood Center I - 45,020 45,020 8 Paloma Ridge A 106,200 - 106,200 9 Paloma Ridge B 106,200 - 106,200 10 Park Central I 15,375 23,326 38,701 11 Park Centre Bldg. 3 57,562 - 57,562 12 Prominent Pointe I 28,979 - 28,979 13 Research Park Number Five 39,237 - 39,237 14 Research Park Place 8 33,518 - 33,518 15 Research Park Plaza V 121,229 121,229 16 Research Tech Center Bldg 2 22,295 22,295 17 Riata Corporate Park Bldg 4 93,737 - 93,737 18 Riata Corporate Park Bldg 5 23,783 - 23,783 19 River Place Corp Park Bldg VII - 21,477 21,477 20 The Park at 8300 N. MoPac 6,911 31,958 38,869 21 Travesia Corporate Park 1-3 33,555 33,945 67,500 22 UFCU Plaza 28,695 - 28,695 Availabilities of 20,000 sf ± NORTHWEST LARGE OFFICE AVAILABILITY
- 24. VACANCY VS. RENTAL RATESNET ABSORPTIONAVAILABLE SF VS. VACANCY RATE Quarter Net Rentable Area Direct Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 9,382,293 703,789 (22,457) 8.66% $31.19 2014 Q2 9,382,293 853,812 (150,296) 10.26% $30.72 2014 Q3 9,458,793 653,880 164,619 9.24% $31.38 2014 Q4 9,418,793 640,998 42,081 8.41% $34.87 2015 Q1 9,446,430 589,875 66,172 7.98% $34.35 2015 Q2 10,109,725 1,070,609 182,561 12.21% $33.76 2015 Q3 10,257,625 1,192,565 121,673 12.29% $35.03 2015 Q4 10,484,922 769,552 460,460 9.80% $35.85 * Absorption includes sublease space Numbers based on CBRE statistics 0% 2% 4% 6% 8% 10% 12% 14% 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 86% 87% 88% 89% 90% 91% 92% 93% (200,000) (100,000) 0 100,000 200,000 300,000 400,000 500,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate 0% 4% 8% 12% 16% 20% $28.00 $30.00 $32.00 $34.00 $36.00 $38.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate SOUTHWEST OVERALL SUBMARKET PERFORMANCE Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 25. Quarter Net Rentable Area Direct Available SF Sublease Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 7,102,874 480,177 202,095 (37,795) 9.61% $34.71 2014 Q2 7,102,874 387,913 208,978 85,381 8.40% $35.06 2014 Q3 7,102,874 294,587 169,604 132,700 6.54% $35.47 2014 Q4 7,102,547 386,333 182,477 (104,946) 8.01% $36.07 2015 Q1 7,100,750 399,919 188,613 (21,519) 8.29% $36.98 2015 Q2 7,782,464 428,605 213,812 627,829 8.25% $37.55 2015 Q3 7,949,325 353,625 264,345 191,308 7.77% $37.61 2015 Q4 8,158,872 634,326 246,492 (53,301) 10.80% $38.15 * Absorption includes sublease space SOUTHWEST COMPETITIVE SET PERFORMANCE VACANCY VS. RENTAL RATESNET ABSORPTIONAVAILABLE SF VS. VACANCY RATE 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 86% 87% 88% 89% 90% 91% 92% 93% 94% 95% (200,000) (100,000) 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate 6% 7% 8% 9% 10% 11% 12% $33.00 $34.00 $35.00 $36.00 $37.00 $38.00 $39.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 26. Quarter Net Rentable Area Direct Available SF Sublease Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 2,712,851 209,356 143,888 (89,075) 13.02% $37.18 2014 Q2 2,712,851 191,624 165,931 (4,311) 13.18% $37.40 2014 Q3 2,712,851 174,207 126,557 56,791 11.09% $37.59 2014 Q4 2,713,137 158,703 124,248 18,099 10.43% $38.03 2015 Q1 2,711,340 143,863 125,110 12,181 9.92% $39.26 2015 Q2 2,925,937 110,815 101,710 271,045 7.26% $39.49 2015 Q3 2,925,937 105,532 175,528 (68,535) 9.61% $39.84 2015 Q4 2,925,937 149,170 165,733 (33,843) 10.76% $40.59 * Absorption includes sublease space NEAR SOUTHWEST MICROMARKET PERFORMANCE VACANCY VS. RENTAL RATESNET ABSORPTIONAVAILABLE SF VS. VACANCY RATE 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 85% 86% 87% 88% 89% 90% 91% 92% 93% 94% (150,000) (100,000) (50,000) 0 50,000 100,000 150,000 200,000 250,000 300,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate 5% 7% 9% 11% 13% 15% 17% $35.00 $36.00 $37.00 $38.00 $39.00 $40.00 $41.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 27. Quarter Net Rentable Area Direct Available SF Sublease Available SF Net Absorption* Direct & Sublease Vacancy Rate Average Class A Full Service Rental Rate 2014 Q1 4,390,023 270,821 58,207 51,280 7.49% $33.19 2014 Q2 4,390,023 196,289 43,047 89,692 5.45% $33.62 2014 Q3 4,390,023 120,380 43,047 75,909 3.72% $34.16 2014 Q4 4,389,410 227,630 58,229 (123,045) 6.51% $34.86 2015 Q1 4,389,410 256,056 63,503 (33,700) 7.28% $35.57 2015 Q2 4,856,527 317,790 112,102 356,784 8.85% $36.39 2015 Q3 5,023,388 248,093 88,817 259,843 6.71% $36.31 2015 Q4 5,232,935 485,156 80,759 (19,458) 10.81% $36.75 * Absorption includes sublease space FAR SOUTHWEST MICROMARKET PERFORMANCE VACANCY VS. RENTAL RATESNET ABSORPTIONAVAILABLE SF VS. VACANCY RATE 0% 2% 4% 6% 8% 10% 12% 0 100,000 200,000 300,000 400,000 500,000 600,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate Availability(SF) Direct Available SF Sublease Available SF Direct & Sublease Vacancy Rate 88% 90% 92% 94% 96% 98% 100% (200,000) (100,000) 0 100,000 200,000 300,000 400,000 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 OccupancyRate Absorption(SF) Net Absorption* Direct & Sublease Occupancy Rate 0% 3% 6% 9% 12% 15% $32.00 $33.00 $34.00 $35.00 $36.00 $37.00 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 VacancyRate RentalRate Average Class A Full Service Rental Rate Direct & Sublease Vacancy Rate Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 28. $15 $20 $25 $30 $35 $40 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 FullServiceRentalRates($) Historic Rental Rate AQUILA Model 3% Job Growth 1% Job Growth 1% Job Growth 3% Job Growth SOUTHWEST OFFICE RENTAL RATE PROJECTIONS Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 29. 5.0 6.4 7.8 9.2 10.6 12.0 0% 5% 10% 15% 20% 25% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 MarketSize(MillionsofSF) TotalVacancyRate(%) Market Size Historic Vacancy Rate AQUILA Model 3% Job Growth 1% Job Growth 1% Job Growth 3% Job Growth SOUTHWEST OFFICE VACANCY RATE PROJECTIONS Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 30. Building Total SF % Preleased Estimated Delivery Status 1 The Backyard - Buildings B, J, & H 171,450 0% Planned Planned 2 Lantana Ridge I 87,500 0% Planned Planned 3 Lantana Ridge II 87,500 0% Planned Planned 4 Regency Park 90,000 0% Planned Planned 5 Rollingwood Center III 107,000 0% Planned Planned 6 The Terrace 3 203,130 0% Planned Planned 7 The Terrace 4 285,663 0% Planned Planned 8 The Terrace 5 218,809 0% Planned Planned SOUTHWEST OFFICE DEVELOPMENTS Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 31. Building Direct Available SF Sublease Available SF Total Available SF 1 3900 San Clemente 135,366 135,366 2 Encino Trace II 130,070 - 130,070 3 Rollingwood Center I & II 7,878 110,108 117,986 4 The Summit 1-5 52,939 - 52,939 5 3700 San Clemente 51,934 51,934 6 The Park on Barton Creek 1 - 42,527 42,527 7 The Park on Barton Creek 2 38,900 38,900 8 Rialto II 1,588 36,421 38,009 9 CityView Center - 24,478 24,478 10 Parkway at Oak Hill 1 & II 23,644 23,644 11 The Terrace 6 22,771 - 22,771 12 Barton Skyway II 21,435 - 21,435 Availabilities of 20,000 sf ± SOUTHWEST LARGE OFFICE AVAILABILITY Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 32. SOUTHWEST AVAILABILITY SKYLINE Read the full 4Q Austin Market Report at aquilacommercial.com/reports
- 33. Read the full 4Q Austin Market Report at aquilacommercial.com/reports Questions? Contact Clayton Schleimer at schleimer@aquilacommercial.com Find us on social media: f t l 1717 W. 6th Street, Suite 400 Austin, TX 78703 aquilacommercial.com