Make 2009 a Better Year than Anyone is Expecting
By Michael Kennedy, SIOR, President, Commercial Texas
Happy New Year 2009!
Today is the first day to make 2009 a better year than anyone is expecting!
Looking at 2008 here in Austin is to recognize that supply and demand do matter – and that no market is immune to economic conditions in a global economy.
The market has changed from a Landlord to a Tenant’s market.
In 2008, Austin added significant supply to the Industrial and Office supply while below average absorption demonstrated the lack of demand. Sublease space is over 1 million square feet in the office market.
Job growth in Austin has stalled. By Austin standards, 2009 projections of 15% job growth over 2008 is like going backwards.
Austin is experiencing all the symptoms that have occurred around the nation and now the world. It’s a lack of clarity and confidence in the future. Until confidence returns, no one wants to commit.
Positives are that Austin continues to have an employment base of government and education. This provides a certain “floor” to employment. Austin still enjoys a quality of life that appeals to all Texans and many others around the nation and globe.
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