Austin office market report

Q1 2022

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.

5.5+msf

Under construction

Over 5.0 msf of office product is currently under development while availability, particularly within the CBD, dwindles which is sparking new groundbreaking announcements as landlords work to keep up with demand.

 

40k+ sf

Net absorption

Overall net absorption remained positive, but relatively limited as many of the large tech leasing deals signed in recent months have yet to commence.

 

$31.17psf

Direct asking rent

Asking rents within Austin’s tech submarkets, CBD, Domain, East side, and just across the river have reached all time highs with asking rates ranging from the mid-to high-$40s NNN in East Austin and up to the mid-$50s NNN in downtown.

 

3.1%

Sublease availability

Sublease availability has reached an all-time low for the market, reaching 3.1% in Q1 2022, compared to 5.5% in Q4 2020. 

 

15.1%

Direct vacancy

Vacancy continues to face downward pressure as net new demand from large tech groups and organic growth results in new occupancy across the office market.

 

1.0+ msf

Investment sales in Q1 2022

Austin continues to draw interest from investors outside of the market as landlords eye future growth.

 

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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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