Austin office market report

Q4 2023

Austin's office market finished 2023 on a positive note, absorbing 507,000 square feet in Q4 showing signs of entering a recovery. Vacancy declined for the first time in 18 months, mainly due to increased leasing momentum in smaller spaces, showcasing the market's resilience. Tenant occupancy remains stable, with the professional, scientific, and technical services sectors leading. These positive indicators underscore the dynamic and evolving nature of Austin's office market as companies reimagine workspaces and adapt to changing work patterns and economic conditions.
1.7 msf

Smaller leases lead YTD transactions 

Smaller leases accounted for a larger share of demand for office spaces, specifically in the range of 1k-5k square feet, totaling an impressive 1.7 million square feet. Furthermore, the momentum extends to leases encompassing 5k-10k square feet, with a notable 983,000 square feet of office space being leased since the commencement of the year. 

+507k

Net absorption turns positive in Q4 

Austin's office market marked a positive turn with an absorption of 507,000 square feet in the fourth quarter, indicating promising signs of recovery. A noteworthy contributor to this positive absorption involved Amazon and the University of Texas at Austin, collectively occupying 190,000 square feet of space. 

-0.53%

Vacancy showing signs of recovery 

The vacancy rate experienced a decline of 0.53% from the third quarter, concluding the year at a level just below 25%. Despite the persistent challenge of high vacancy rates, there has been an upswing in leasing activity, suggesting a positive trajectory towards improving the overall market’s occupancy in 2024.

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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.

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