For the 3rd quarter of 2011, Austin saw incremental declines in both rental rates and vacancy across all three commercial property sectors. However, this quarter’s changes are too small to signal any significant change in the market, but instead reflect the ongoing trend of very stable conditions. If, however, we continue to see a decline in vacancy over upcoming quarters, Austin could see rents begin to ease upward.

The current steadiness of our market is a good sign; and we believe that, as commercial real estate lending loosens, continued steadiness will inspire new real estate development in the region sooner rather than later.