Austin office market report
Austin continues to lead the US in office job growth and provide a glimpse of the tech market’s return to office strategy post-pandemic. Job growth has surged to all-time highs, with 60,000 new office jobs added since February 2020 while leasing activity continues to be driven by the tech industry.
Increase in office job employment
Austin has added almost 75,000 new office jobs since February 2020, a 23% increase, as Austin continues to lead the nation in office employment growth.
Net absorption was primarily driven by Class A assets within Austin’s urban submarkets. As demand has remained strong, new construction starts have continued to kick-off.
Direct asking rent
Class A asking rents saw an 8.6% growth since Q4 2020 as competition for high-quality, well-located assets continues to grow.
Sublease availability saw a slight quarter-over-quarter uptick as new large blocks came to market. Despite this, sublease availability has declined by over 40% since Q4 2020 for the Austin office market while urban sublease availability has declined by almost 50%.
8.6 msf of office product is currently under development while preleasing in urban submarkets has reached 41%.
The Class A office market continues to drive new occupancy growth for the Austin market, holding a 12.9% vacancy rate, compared to 19.0% for Class B, and 15.4% for the overall market.
Your source for the latest Austin office market reports
Get in-depth office market reports and insights from commercial real estate experts in the Greater Austin area. Avison Young advisors look at Austin commercial real estate activities and the latest Austin statistics to provide you expert market research on Austin's office properties.
Explore different topics like the latest office market pricing trends and analysis of Austin's current office real estate market conditions. Gain a better understanding of Austin’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Austin's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Austin.
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