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Texas  + Austin  + Office  | 
Avison Young office survey shows dip in Austin market indicators

Despite Job Growth, Austin’s Office Outlook Dims

Despite Austin’s annual robust job growth rate of 4.8%, a recent Avison Young survey reports, Austin’s office market fundamentals have softened with its second straight quarter of negative absorption and largest occupancy loss since the onset of the pandemic. Leasing activity has also cooled down mainly due to the national economic headwinds prompting many companies to delay making long-term real estate space commitments.

Vacancy rates surpassed the 20% mark with the bulk of the occupancy losses resulting from companies reducing their footprint and placing sublet space on the market.

The sublet available space climbed to post-pandemic highs. Sublease space offerings rose by 395k sf in Q1 2023 and have climbed nearly 2.8 msf over the prior 12 months as companies fully assess their space needs due to a growing hybrid work policy and potential economic slowdown.


Inside The Story

About Mike Boyd

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.

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