Austin is Putting Workers in Desks
When looking at the state of the office, there are two different pictures. At the national level, there are still many empty desks. Estimates put 60% of global office employees at home in September 2021, because of the pandemic. However, when looking at Texas and Austin specifically, we get a different picture; “Austin led the country in workers at their desks in September, with just under half of employees back in the office.” Austin’s office numbers are a stark contrast to San Francisco, where only 21% of workers are currently in office. Austin’s sentiment towards the office is a case study for the rest of the nation.
Office usage could become yet another tip of the hat for companies moving to Texas. There has been a tremendous influx of companies relocating their headquarters to Texas, and one of the reasons is the warmth towards the office. Just recently, Tesla announced it would be relocating to Austin. Yet another notable company moving to Austin. Looking forward, Austin will continue to garner national attention if other states remain vacant from their offices. States reluctant to go back into the office may cause an acceleration of relocations to places like Austin, where it has advantages in areas like taxes, regulations, and cost of living.
As the office market returns to normal, Austin continues to mint deals as many large tech companies build their own offices, buy offices buildings, and lease Class A spaces. To keep up with the scorching demand for the Austin office market, developers are rapidly building, with around 6 million square feet currently under construction and over 23 million square feet proposed. Larger tech companies are also drawing in smaller companies as Austin has seen eye-popping job growth exiting the pandemic. “Through September, more than 150 companies announced the addition of 20,840 jobs in the area, according to data from the Greater Austin Chamber of Commerce. That included more than 5,500 jobs from roughly 50 companies during June, July, and August. The 20,840 announced jobs represented 94% of last year’s record of 22,114 jobs announced by companies relocating to or expanding in Austin.”
Austin continues to prove that it is the place for business. Companies relocating here left and right, the housing market exploding, and rapid job growth. Even the office, uncertain at the height of the pandemic, fought its way back in the capital city of Texas.
Austin Q4 2021 Development Pipeline
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