Availability of commercial office space in Round Rock tends to increase in 2021


City Center 2 at 551 I-35, Round Rock will provide 125,000 square feet of Class A office space upon completion. (Community Impact Newspaper / Brooke Sjoberg)

Although the direct availability rate of commercial office space in Round Rock rose to 9.3% in the first quarter of 2021, the city remains one of the most sought after in the Greater Austin area.

That’s according to a market report from Austin-based commercial real estate and brokerage firm Aquila.

This figure is up slightly from 9.2% in the fourth quarter of 2020. A year earlier, in the first quarter of 2020, the rate was 8.5%.

Aquila’s Austin Office Market report uses the city limits of Round Rock to define its office real estate market. It was released in early May and shows the availability rate was the second lowest in the region compared to 14 other regional markets in the Austin area. It is just behind the Mueller submarket region, which had a 0% uptime rate in the first quarter.

For sublet office space, the availability rate in the first quarter of 2021 was 3.5%, down slightly from 3.8% in the fourth quarter of 2020. This rate represents the availability of office space. sublet offices in which a tenant rents the office space. they rent from one owner to another tenant. In the first quarter of 2020, this rate was 0.9%.

Aquila uses an availability rate to denote office space available for purchase or rental, which the report justifies by considering that a vacant office is always available, but that an available office is not always vacant. because landlords can start renting office space while an existing tenant is occupying it.

The figures represent offices ready to be let, not under construction. There are several office developments under construction in Round Rock, such as The Center at Gattis at 2261 Gattis School Road, which will have 30,000 square feet of office space, according to developer BlueAcre Development.

Another office building underway is City Center 2 at 551 I-35, which will provide 125,000 square feet of Class A office space.

In the Aquila report, Taylor McHargue, senior partner, said the Round Rock area may experience increased development once the majority of Austin area employees return to work, as “traffic in Austin will be worse than ever “.

Aquila market research expert Kirk Silas said Round Rock could become an attractive option for businesses once Class A or high-end offices become available, due to their affordability.

“Whether they’re already in Austin, or maybe even tenants who are coming to Austin for the first time or trying to expand their presence in Austin, I think these [spaces under construction] could give some really interesting opportunities for the space which can be a little more affordable there, ”said Silas.

One of the major Class A office space projects will be the District, which was approved for first reading by Round Rock City Council on June 10. Silas said the district is expected to offer 3 million square feet of office space when complete, and it will be similar in size to The Domain in northwest Austin.

Silas said companies looking to acquire office space in the Austin area may choose outlying cities such as Round Rock to conduct their business activities to avoid heavy traffic in the downtown area.

“We really think the Austin fringes and suburbs are probably going to be where we’ll start to see additional growth over the next few years,” Silas said.

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