Sublet availability in Austin continues to decline
Austin’s office sublease market reached its peak availability of 7.3% in 2023, underscoring a significant level of space being released back into the market. However, demand for sublease options gradually picked up throughout 2024, with availability rates decreasing quarter-over-quarter.
By Q4 2024, the market saw a notable 13% drop from the peak, bringing the current sublease rate down to 6.4%. This steady decline signals strengthening demand for office space in Austin and a preference for move-in ready space by many occupiers.
This trend is expected to continue as more companies like Amazon, IBM, and Dell implement return to office policies, and as more sublease space gets absorbed, reoccupied, and returned to landlords. The gradual absorption of excess space points to improving market conditions and a strengthening outlook for the Austin office sector.