Q2 2023 Austin Office Market Report

At the end of the second quarter, vacancy in the overall Austin office market remains high at about 24 percent, or about 6.6 million square feet. While Austin remains anattractive city for companies due to the abundance of talent and tax advantages, lease commitments have continued to decline.

From 2017 to 2019, the Austin office market saw a total of 34 leases over 100,000 square feet, but only one lease over the past 12 months has been of that size. It’s safe to say that Austin is a tenant’s market, as landlords are struggling and have been flexible in offering incentives. Office leases signed in the first quarter of 2023 totaled 985,000 square feet, a 60 percent decline from the 2.4 million-square feet average of the past 10 years.

Demand within CBD Class A office space have slowed as many projects near completion.The city is expected to deliver over 3 million square feet, which is the third highest since 2015 within the CBD, North Austin and The Domain submarkets. Over the next year, we are still optimistic that Austin will be one of the first cities to bounce back.

Download the full report to learn more.