Austin office market report
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.
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.
Overall net absorption remained positive, but relatively limited as many of the large tech leasing deals signed in recent months have yet to commence.
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.
Sublease availability has reached an all-time low for the market, reaching 3.1% in Q1 2022, compared to 5.5% in Q4 2020.
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.
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.
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