Commercial Real Estate:
Austin, Texas Sees Increased Demand
Commercial Real Estate Figures Are Good For
The Market ... Not So Good For Tenants
The Commercial real estate market is seeing good numbers in general nationwide. But, like all market, for every upside there is a downside. What's good for the goose might not be as good for the gander. For instance, demand for commercial real estate space is up in Austin, Texas. That is good news for builders, developers, brokers, investors, etc. It's not as good news for tenants as their choices narrow and their rents increase.
Here's a report from Casey James of KXAN Austin News, the NBC affiliate in the area.
Austin office space inventory shrinks
Casey James - "Chris Oddo of Don Cox Commercial Real Estate said the burgeoning demand is driving up leasing prices. In 2011, office space were renting for $126 a square foot. This year, the same space is going for $180." ... KXAN Austin News
Commercial Real Estate Space Available For Rent Dwindles
As Former Renters Purchase
The good side of this story is that much of the commercial real estate space inventory that is disappearing is actually being purchased by former renters. When they see their rents climbing because of high demand, many are figuring out that with market conditions as they are ... with prices to purchase and interest rates so low ... they could be doing better by purchasing their space instead of renting.
Sound familiar? It seems a situation that many of us remember seeing in the housing market is now taking place in the commercial real estate market in various parts of the country.
Commercial Real Estate