Austin office market report

Q1 2024

The Austin office market has started the year with consistent activity, with 1.2 million square feet (msf) of space transacted, largely fueled by the high demand for smaller office spaces. Although Q1 saw negative absorption, ongoing leasing activity and substantial move-ins have contributed to market stabilization. Nevertheless, availability and vacancy rates are anticipated to climb as 4 million square feet of space is presently under development, prompting tenants to evaluate their future office space needs.
1.2 msf

Smaller leases lead transactions 

Since the beginning of the year, 1.2 million square feet (msf) of office space has been leased, with a continued preference for smaller deals. Spaces ranging from 1,000 to 5,000 square feet led in transaction volume in Q1.

-39k sf

Net absorption ends negative

Although the overall space absorption showed a negative trend (-39,651 square feet) in Q1, a substantial move-in by Amazon (332,865 square feet) in North Austin contributed significantly to maintaining market stability. Despite an overall negative absorption of -39,651 square feet in Q1, a substantial 332,865 square foot move-in by Amazon in North Austin helped significantly maintain market stability.

5.7 msf

Availability surpasses vacancy

Despite the total availability rate currently being 610 basis points higher than vacancy rates, ongoing leasing activity has assisted in stabilizing vacancy levels. However, there are expectations of further increases due to new developments coming online.

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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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