Central Texas’ strong job growth, which was at a 4.1 percent annual rate in May, continues to fuel demand for office space in a tightening market where several new projects are under construction. Those projects will add more than 1.3 million square feet of space this year. Regional economic development officials are working with more than 100 companies that are scouting Central Texas for possible expansion or relocation.

The Austin-area office market continued its healthy run in the second quarter, with rents for top-tier space hitting their highest level since early 2001, according to Oxford Commercial. Though vacancies for first-class space rose from the previous quarter, when they reached their lowest level in six years, they were still down from the same year-ago quarter. Rents for Class A space averaged $29.52 per square foot in second quarter 2007, up 23 percent from $23.92 a year ago. Those companies include several that could bring between 500 and 1,000 employees, said Dave Porter, senior vice president of economic development for the Greater Austin Chamber of Commerce.