• The Austin office market experienced another period of negative absorption, registering (802,393) of net demand. Vacancy increased quarter-over-quarter to 19.1% and availability increased to 24.9%.  

  • Average Full-Service Gross asking rates increased to $40.57 per sq. ft., driven due to an increase in both OPEX and NNN asking rates.

  • Despite the rising vacancy rates and negative absorption, the Austin office market is poised for a strong rebound as numerous companies have announced intentions to relocate to the Capitol or expand their current footprints. 

  • The trend of slowing development activity continued into Q1 2021 with the overall pipeline falling to 5.28 million sq. ft., down from a high of 6.9 million sq. ft. in Q1 2020.