Austin office market report

Q2 2023

Austin’s metro economy continues to perform well with a diverse, growing job market and sustained low unemployment. Despite the strong local economy, Austin’s office market fundamentals softened further with another quarter of negative absorption, causing vacancy and availability rates to rise. Layoffs, mainly within the tech sector, coupled with hybrid work, has resulted in an influx of sublease space coming on to the market during the first half of 2023. However, the long-term outlook remains positive, given the area’s strong economic and labor market fundamentals that will help tackle the near-term softening macroeconomic landscape.


Annual employment growth remains strong

Austin’s employment growth has continued to show resilience with 50,800 new jobs added over the prior 12 months. This impressive 4% annual growth rate ranks Austin as one of the top metros in the country.


Total availability rises as supply increases

Despite a quarter-over-quarter decrease of 1.7% in Austin’s direct availability, the rising trend of sublet availability persists with an increase of 11.3%. The supply of office space has outpaced leasing demand leading to a 3% increase from Q1.


Leasing activity increases from previous quarter

The leasing activity in Austin experienced a significant increase of 46% from the first quarter. This reflects a growing demand for office space in the area, which could eventually lead to positive market conditions.
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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.

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