Austin office market report

Q4 2024


In 2024, the Austin office market showcased its resilience, steadily recovering from the challenges of the pandemic. With net absorption totaling 657,828 square feet (sf) for the year, much of the progress was driven by consistent sublet absorption. Vacancy rates experienced a modest decline, further reflecting the market's upward trajectory. Strong leasing activity was a key contributor, as major tenants secured space, signaling growing confidence in Austin’s office landscape. These combined trends highlight Austin’s enduring appeal for businesses and position the city’s office market for further growth in the coming year.
4.5 msf

Leasing activity ends the year positively

During 2024, 4.5 msf of office space was leased, with prominent agreements from IBM and PayPal serving as key milestones. These significant transactions underscore a resurgence in market activity and reflect a renewed commitment from leading companies to prioritize in-person work environments.

713,000 sf

Sublet absorption realizes positive gains

Throughout 2024, Austin saw 713,678 sf of sublet space absorbed, marking a consistent quarterly lead over direct absorption. This underscores the city’s responsiveness to shifting market conditions and the ongoing reduction of sublet inventory.

40 bps

Vacancy decreases throughout 2024

Austin's vacancy rates have fallen by 40 basis points since early 2024, reflecting a promising market trend. This improvement is driven by strong absorption, active leasing, and significant transactions that signal a turnaround in the office sector.

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.

The dashboard was delivered through AVANT by Avison Young: leveraging real-time data and analytics to make cities and location-based decisions more transparent and efficient. Learn more about AVANT.

Get the latest Austin office market reports right in your inbox