Market Snapshot for Austin Office Real Estate
We put together a quick snapshot of the latest key statistics for Austin office real estate. The Austin office report includes: vacancy rates, absorption rates, rental rates, and the latest property transactions. This report is updated quarterly by our commercial real estate experts.
As a means of getting some overall context for Austin’s economy overall, we provided some key highlights pulled from our compilation of Reasons to Invest in Austin Commercial Real Estate:
– Austin is the 2nd Fastest Growing GDP in the United States
– Austin has the 11th largest economy compared to other cities in the country
– Austin has been given the unofficial / official title as the Tech Hub of the South
– Austin’s population is predicted to keep growing at a huge rate; it is possible that it will surpass New York metro’s population by the end of the century!
Austin Office Real Estate Statistics: Leases, Sales, and Projects Under Construction – Q2 2024
Here’s a quick summary of the office real estate statistical highlights, latest property transactions, vacancy / lease trends, and current market activity for Austin, TX. The analysis below is derived and compiled from leasing stats, latest transactions, and projects under construction in order to further understand the overall state of the office real estate market in Austin.
Highlighted Office Real Estate Statistics Austin – Q2 2024
- Vacancy: 16.8%
- Absorption: -31,149
- Asking rate PSF: $43.87
Primary Office Real Estate Statistics in Austin – Past 12 Months
12 Month Deliveries in SF: 2M
12 Month Net Absorption in SF: 367K
Vacancy Rate: 16.8%
12 Month Rental Growth: 2.3%
Top Office Real Estate Leases in Austin – Past 12 Months
1. The Summit at Lantana – Southwest
Tenant: Advanced Micro Devices
Size: 224,734 SF
Tenant Rep Co:CBRE
Leasing Rep Co: HPI Real Estate Services
2. Tokyo Electron America – Southwest
Tenant: Tokyo Electron America
Size: 134,283 SF
Tenant Rep Co: Not Listed
Leasing Rep Co:Not Listed
3. The Summit at Lantana – Southwest
Tenant: Advanced Micro Devices Inc
Size: 98,920 SF
Tenant Rep Co: CBRE
Leasing Rep Co: HPI Real Estate Services
4. Research Park Plaza – Northwest
Tenant: Not Listed
Size: 100,751 SF
Tenant Rep Co: Not Listed
Leasing Rep Co: Not Listed
5. RiverSouth – South
Tenant: Not Listed
Size: 76,916 SF
Tenant Rep Co: HPI Real Estate Services
Leasing Rep Co: Stream Realty Partners
Office Real Estate Sales Statistics in Austin – Past 12 Months
Over the last 12 months there have been 200 total office real estate transactions in Austin with an average cap rate of 6.7%. The average price per square foot at the time of sale was $321, and the average vacancy was 12.7%.
Sales Comparables: 200
Average Cap Rate: 6.7%
Average Price/ SF: $321
Average Vacancy at Sale: 12.7%
Top Office Real Estate Sales Transactions in Austin – Q2 2024
Top Transaction Highlight in 2023: Intel Campus for $111M
1. Intel Campus – 1300 S MoPac Expy
Price: $111,000,000
Size: 424,332 SF
Price/ SF: $262
Cap Rate: Not Listed
Vacancy: 0%
2. Fifth + Tillery – 3100 East 5th St
Price: $87,250,000
Size: 182,716 SF
Price/ SF: $478
Cap Rate: Not Listed
Vacancy: 5.8%
3. The Barton – 1221 S Mopac Expy
Price: $53,300,000
Size: 173,302 SF
Price/ SF: $308
Cap Rate: Not Listed
Vacancy: 4.0%
4. 8721 Menchaca Rd
Price: $7,655,000
Size: 9,644 SF
Price/ SF: $794
Cap Rate: Not Listed
Vacancy: 0%
5. Thrive Centre Building – 12885 Research Blvd
Price: $3,659,448
Size: 25,082 SF
Price/ SF: $146
Cap Rate: Not Listed
Vacancy: 0%
Office Real Estate Projects Under Construction in Austin – Past 12 Months
At the moment there are 66 office assets / properties under construction in the Austin market representing nearly 5M square feet of new space. This represents 4.1% of the total office real estate inventory and nearly 45.8% of the total space is pre-leased.
Below the stats you’ll find the top-5 largest office projects currently under development.
Properties Currently Under Construction: 66
Total Size: 5,579,936
Percent of Inventory: 4.1%
Pre-leased: 45.8%
Top Office Real Estate Projects Under Construction Austin – Past 12 Months
1. The Republic – 401 W 4th St
Size: 816,583 SF
Completion Date: Q2 2025
Developer/ Owner: Phoenix Property Company / Travis County
Stories: 48
2. Samsung Office – 900 County Road 401
Size: 800,000 SF
Completion Date: Q2 2024
Developer/ Owner: Not Listed / Not Listed
Stories: 6
3. Waterline Tower A – 98 Red River St
Size: 640,000 SF
Completion Date: Q1 2026
Developer/ Owner: Not Listed / Lincoln Property Company
Stories: 39
4.Springdale Green Bldg B – 1017 Springdale Rd
Size: 447,800 SF
Completion Date:Q2 2024
Developer/ Owner:Not Listed / Not Listed
Stories: 6
5. Springdale Green Bldg A – 1017 Springdale Rd
Size: 385,000 SF
Completion Date: Q2 2024
Developer/ Owner: Not Listed / Jay Paul Company
Stories: 6
Data sources: GWPTX & CoStar
