Austin office market report

Q3 2025

Austin’s office market posted a significant third quarter rebound, with over 700,000 square feet (sf) of positive absorption, marking one of the strongest recent quarters. The market is led by high-profile move-ins at premium assets like The Republic. Tenants continue to favor premium space in prime locations, driving a consistent flight-to-quality trend, although decision-making remains measured amid economic headwinds. Looking ahead, steady market improvement is expected through year-end as confidence gradually builds.

+900k sf

Leasing activity remains strong in Q3

Over 900,000 sf of total lease transactions were signed in Q3. While the bulk of the leasing activity was concentrated in smaller footprints, reflecting the ongoing shift toward flexible occupancy strategies, larger commitments also played a role.

5.5%

Vacancy decreases from its peak

Vacancy rates across Austin have decreased by 5.5% since peaking in 2023. This significant improvement highlights renewed leasing momentum as the flight-to-quality trend remains ever-present.

-242k sf

Tenants expand their footprint in a recovering office market

Austin’s office market continues to see expansion driven by the ongoing flight-to-quality trend, with the delivery of The Republic highlighting strong demand for modern, premium office space.

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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.