Austin office vacancies are on the rise, and as a result, office development has stalled.
Community Impact reports Aquila Commercial shows overall office vacancies in the city have increased by nearly 2 1/2 times since mid-2020. The vacancy rate is sitting at about 33%. Company spokesman Kirk Silas says the activity is still slow, driven by remote work policies and lessened demand. The amount of square feet of empty office space grew by 1.8 million square feet since the first of the year.
While a large chunk of office space remains available, the pace of new additions is not likely to match what the city’s been seeing over the last several years. While Aquila tracked about 15 notable office projects set to wrap up through the end of 2023 or in 2024, only three major projects have firm timelines set for the following years—while dozens remain on hold or in early planning stages.
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Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.