Before last year, Austin boasted one of the strongest office markets in the nation with incredible job growth, rent growth, and hefty supply pipelines. In fact, Austin saw the lowest job losses last year than any other market. Various tech companies are headquartered in Austin, including IBM, Dell, Apple, Facebook, and Oracle. Austin’s growing tech sector has helped cushion any pandemic-related constraints, appearing virtually unaffected by the economic slowdown after seeing correlated increases in demand for IT services. For example, Microsoft Teams reached 115 million daily active users by October 2020. The University of Texas, located in the heart of Austin, was ranked second by U.S. News and World Report, just behind a university in Beijing, for Science, Technology, Engineer, and Mathematics (STEM) graduates. Further, Austin’s population grew nearly 30 percent from 2010 through 2019, outperforming Raleigh, the second-fastest-growing market, by more than 6.5 percent. The latest headlines in Austin report Oracle designating its new headquarters in the one million square foot office in East Riverside and Tesla’s new Gigafactory in East Austin. As of December, Austin has the most considerable office development activity of any other major market as a percent of inventory. In the last year, Austin added three million square feet to the office market, increasing the vacancy rate to 14.2 percent. The market’s relative affordability, strong population growth, and expanding talent and labor pool offer plenty of incentive for relocating companies that will likely feed into demand for office space.
In this report, you will find:
- Austin Population Trends and Economic Demographics
- New Office Development
- Occupancy and Rent Trends
- Office Sale Comparables