Industrial The Austin multi-tenant, non-manufacturing industrial market had a strong year in 2006, though not as strong as in 2005. The vacancy rate was 12.7% at the end of 2006 after a 110 basis point decline. The average asking rent ended the year at $5.60 psf, and the average effective rent at $5.22 psf, after gains of 2.8% and 3.4% respectively in 2006.

Retail The Austin neighborhood and community shopping center market is growing along with the area’s population. The vacancy rate for the fourth quarter of 2006 is 8.1%, down 10 basis points from the prior quarter but up 30 basis points from the fourth quarter of 2004, Reis reports. The average asking rent rose 3.4% to $19.07 psf, and the average effective rent increased 2.9% to $17.28 psf, in 2006. The fourth quarter gains are 0.8% and 1.0%, respectively.

Office Austin’s multi-tenant office market had a huge rent gain in 2006, although negative net absorption slowed things down in the fourth quarter. The vacancy rate was 14.7% at the end of 2006, Reis reports, up 40 basis points from the prior quarter on negative net absorption but down 180 basis points year-over-year. The average asking rent rose 10.3% to $22.06 psf, while the average effective rent rose 12.8% to $19.02 psf in 2006. The fourth quarter gains of 1.7% and 1.6% respectively, however, were the weakest of the year.

Multi-Family The Austin multi-family sector is stable, with moderate vacancy and slow rent gains coming off tech-bust declines. The vacancy rate is 7.2% for the fourth quarter of 2006, Reis reports, up 10 basis points from the prior quarter but down 40 year-over-year. The average asking rent rose 2.9% to $790 per month while the average effective rent increased 3.7% to $709 per month in 2006. The fourth quarter gains are 0.3% to and 0.7%, respectively.