Austin office market report

Q2 2025

Mid-year results for Austin’s office market highlight a transitional phase. While leasing remains active, ongoing vacancy and absorption pressures show the market has not yet reached full balance. Tenants are prioritizing premium space in top-tier locations, though decision-making has slowed as companies navigate economic headwinds. This cautious optimism is shaping a more deliberate market pace. Looking ahead, the foundation is being laid for steady improvement through year-end.

2.2 msf

Leasing activity positive in first half of 2025

More than 2 million square feet of office leases have been signed over the past six months, with the second quarter accounting for over 922,000 square feet. Brokers report an increase in deal activity, though many transactions are taking longer to close.

33.4%

Flight to quality evident: Class A sublease levels significantly down

Class A and B assets have seen significant reductions in sublet availability since their peak in 2023. Specifically, class A sublet space is down 33.4% while class B has declined by 24%. This trend highlights a strong tenant preference for higher-quality, well-located office space.

-216k sf

Signs of stabilization despite negative absorption

Despite negative absorption in the second quarter, Austin’s office market is showing hopeful signs of stabilization. Mid-sized deal momentum suggests a potential second-half turnaround.

DOWNLOAD AUSTIN OFFICE MARKET REPORT

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.