Open Menu

Austin

Office Market Insight

Austin Q4 2023 Market Stats

$29.50
Avg. NNN Rent
15.7%
Vacancy Rate
281K
SF Delivered
5.8M
SF Under Construction

Download the Q4 2023 Austin Office Market Report

Sign up to get exclusive access to research and insights that detail the state of the real estate market in Austin.

Office Flight to Quality in Austin, TX

The Austin office market is currently experiencing a significant shift towards quality and innovation, as companies are redefining their workspace strategies. This trend, often referred to as “flight to quality”, is reshaping the city’s commercial real estate landscape and attracting major players seeking top-tier office spaces. In this article, we’ll shed light on how this transformation is taking shape and the implications for businesses in the region.

The Austin Business Journal shared an article discussing the growing importance of quality office spaces in Austin, citing the increased demand for innovative work environments that foster collaboration and productivity. The piece emphasizes the need for companies to invest in high-quality office spaces to attract and retain top talent. This aligns with the broader trend of employees prioritizing work-life balance and seeking workplaces that prioritize their well-being.

For example, ABJ reported on the expansion of HNTB’s Austin office and their strategic move to the Indeed Tower to invest in a high-quality workspace. HNTB, a prominent infrastructure solutions firm, has recognized the value of a premium office location, underscoring the importance of a prime workplace to accommodate growth and attract skilled professionals. Similarly, the article highlights HNTB’s commitment to providing its employees with a state-of-the-art office environment, embracing the flight to quality as a critical factor in maintaining a competitive edge.

In addition, Tokyo Electron recently signed a 98,000 SF lease at RiverSouth, moving away from their HQ campus outside of the downtown area. The decision to establish headquarters in Austin signifies the city’s prominence as a global technology hub. Tokyo Electron’s move aligns with the narrative of flight to quality, as the company aims to leverage Austin’s innovative ecosystem and provide its employees with cutting-edge workspace.

The convergence of HNTB and Tokyo Electron’s recent developments highlights Austin’s transformation into innovation, growth, and quality. The office flight to quality trend is not only reshaping the CRE landscape but also positioning Austin as a city that embraces and fosters the evolution of workspaces. With its appeal to both domestic and international corporations, Austin stands at the forefront of the evolving workplace model, solidifying its reputation as a destination for businesses seeking top-tier office spaces.

Austin Sublease Activity

Quarter Class A Office Class B Office Class C Office Total
2018 Q1 1114427 465834 22831 1603092
2018 Q2 1135173 703671 27356 1866200
2018 Q3 1158644 596011 62841 1817496
2018 Q4 1025760 685090 51813 1762663
2019 Q1 959386 616030 32816 1608232
2019 Q2 907874 659263 19732 1586869
2019 Q3 641646 632070 27772 1301488
2019 Q4 943674 657355 20145 1621174
2020 Q1 1293038 699123 20254 2012415
2020 Q2 1912374 808228 35809 2756411
2020 Q3 2295295 946767 44659 3286721
2020 Q4 3024439 1070789 48013 4143241
2021 Q1 2905258 1016242 59778 3985265
2021 Q2 2067050 823289 51786 2942421
2021 Q3 1760065 731252 38713 2530284
2021 Q4 1889479 845798 45870 2781147
2022 Q1 1468352 909732 51755 2429840
2022 Q2 1905530 888513 30219 2824263
2022 Q3 2536072 1265781 28336 3829191
2022 Q4 3331840 1437075 32726 4812712
2023 Q1 3898586 1450787 39880 5389254
2023 Q2 4436146 1478106 34539 5948791
2023 Q3 4772705 1546187 15571 6334463
2023 Q4 4317676 1505023 46824 5958357

Austin In the News

After 12 Years, Site Selection Magazine Puts Texas Back on Top of Prestigious Ranking November 2023 ABJ Austin Office Availabilities Climb, but at a Slower Pace November 2023 CoStar New Office Space Could Become a Rare Commodity As Construction Slows December 2023 CoStar Office Occupancy in Austin Above Pre-Pandemic Levels Despite Challenging Year December 2023 CoStar

 

Austin Q4 2023 Office Development Pipeline

 
.embed-container {position: relative; padding-bottom: 80%; height: 0; max-width: 100%;} .embed-container iframe, .embed-container object, .embed-container iframe{position: absolute; top: 0; left: 0; width: 100%; height: 100%;} small{position: absolute; z-index: 40; bottom: 0; margin-bottom: -15px;}

 

VIEW THE FULL Q4 2023 PIPELINE HERE

 

Austin Submarket Map

 

Back to Top