Austin office market report

Q1 2025

The Austin office market is seeing a strong resurgence, driven by robust leasing activity and a decline in vacancy for the first time in almost two years. Positive absorption has been largely fueled by sublease space being taken off the market, reflecting an uptick in demand. Mid-size office spaces remain the most in demand, as companies adjust to hybrid work models. Additionally, capital markets activity has strengthened, with sales volumes rising 85% year-over-year, signaling renewed investor confidence. These trends point to a solid recovery in Austin’s office sector, with increasing demand and growing market momentum.

+1.3 msf

Leasing activity ends the year positively

At the start of 2025, 1.3 million square feet of office space was leased, with BigCommerce, NinjaOne, and Spectrum among the key tenants, accounting for 165,619 square feet. This momentum suggests businesses are still committing to office space, reflecting confidence in the market’s long-term stability.

+195,000 sf

Sublet absorption realizes positive gains

Absorption became positive, largely due to the commencement of leases by PayPal, Four Hands, and Quantic Wenzel, as well as the addition of sublease space. The positive absorption indicates a healthy demand for space, supported by notable lease agreements and sublease activity.

-0.2%

Vacancy decreases throughout 2024

Vacancy decreased for the first time since 2022, falling 0.2% year-over-year, indicating a shift towards market stabilization. The decline in vacancy suggests a positive trend toward a more balanced and stable market.

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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.