Austin Office Market Shows Signs of Life

Avison Young has released its Third Quarter 2023 Office Market Report for Austin. The report notes that Austin’s office market faced a challenging quarter with significant occupancy losses, however, leasing velocity has improved with an uptick in demand for smaller office spaces. 

Leasing activity has acclimated to the combination of economic uncertainty and the growing prevalence of hybrid work arrangements. Due to these conditions, office space ranging from 1,000 to 10,000 square feet has become popular amongst tenants, with a total of 1.7 million sf transacted year-to-date. 

These mixed indicators reflect the complex dynamics and evolving nature of Austin’s office market in response to changing work patterns and economic conditions.

Avison Young’s Carl Condon noted, “Vacancy has reached a level where we’re beginning to see pressure on rates, resulting in the creation of opportunities for larger tenants. It’s an ideal time for users to come back to the office.