Austin leasing activity suggests urban and suburban growth - United States
Austin leasing activity suggests urban and suburban growth
Leasing activity over the past few years suggests occupier demand remains strongest in urban environments, namely the CBD , East Austin, and The Domain, reinforced by a flight to quality trend, while the suburbs have exhibited steady activity due to a higher inventory of smaller blocks and closer proximity to employees.
Since 2020, CBD leads with a total of 1.5 million sf leased, while the East follows closely behind having leased of total nearly 900k sf. The northern Austin submarkets, comprising of North/Domain, Northwest, and Northeast follow the same positive trajectory having leased a combined 1.2 million sf during the same period.
Recent development and leasing activity confirms certain submarkets with urban characteristics have captured a larger share of the activity greater than 20k sf as companies are drawn to high quality spaces with superior amenities and walkability that appeal to the modern employee.