Nationwide, Austin had the biggest year-over-year spike in office vacancy through April, rising 590 basis points and hitting 22.0 percent. Most similar-growth Sun Belt peer markets saw a decrease of their vacancy rates since the same period in 2022, including Charlotte (-270 basis points), Nashville (-60 basis points) and Houston (-330 basis points), while Phoenix ‘s rate grew by 320 basis points.

Ironically, Commercial Edge reports the metro still leads the nation when it comes to office development on a percentage-of-stock basis. Planned and under construction projects represented a significant 24.7 percent of total inventory, trailed by Nashville (13.6 percent), Seattle (13.0 percent) and San Francisco (13.0 percent).

The two largest office projects under construction as of April broke ground last year. Lincoln Property Co., Phoenix Property Co. and DivcoWest are constructing The Republic, a 48-story, 833,000-square-foot tower in downtown Austin.