Austin’s Office Market Demand Grows as Tech Starts Reopening, NAI Report says
The Austin office market is showing signs of demand improvement, as leasing volume increased in the first quarter by 44% to 2.1 million square feet compared to this time last year at 1.5 million square feet, according to NAI Partners Austin 1Q 2022 report. Additionally, Q1 2022 marks the 11th consecutive quarter that delivered supply (636,000 SF) outpaced demand (represented by net absorption at 577,000 square feet).
As Covid-19 fears decrease, many large technology companies are preparing to welcome employees back to the office, or have already done so, the report said.
NAI’s 1Q report shows that Net absorption closed the first quarter at positive 577,000 square feet. This was a significant turnaround compared to this time last year at negative 149,000 square feet. The vacancy rate is 14.4%, up from 13.5% this time last year and unchanged quarter over quarter. The overall vacancy rate in the CBD is 14.1%, and the availability rate is 16.2%. A wider margin tracks for Class A space in the overall market at 14.0% vacancy, compared to 19.2% availability.
- ◦Economy