Austin Office Market
| Average Asking Rent (Price/SF) | $40.40 |
| Vacancy Rate (%) | 17.5% |
| Net Absorption (SF) | 150,401 |
The Austin office market closed the second quarter of 2022 with consistent metrics overall. Rental rates continue their upward trend, while vacancy is steadily elevated at 17.5%. The Austin market is experiencing unprecedented development as construction started on over 3 million square feet of space in the second quarter of 2022. Annualized investment volume was about 77% lower in the second quarter of 2022 at $308.0 million. Year to date, investment volume in the Austin market totals $1.07 billion. A recent report from The Wall Street Journal and Moody’s Analytics ranks Austin as the strongest job market in the nation, fueled by low unemployment, job growth and wage growth.
Download Austin Office Market Report 2Q22Austin Industrial Market
| Average Asking Rent (Price/SF) | $12.27 |
| Vacancy Rate (%) | 3.8% |
| Net Absorption (SF) | 1,443,503 |
Robust development has pushed Austin’s industrial market to the number-three spot, behind Dallas and Houston, for industrial space under construction among the nation’s major markets. The Austin market’s unprecedented levels of development and record-low vacancy rates have carried through to the second quarter of 2022. For the quarter, the market realized 1.4 million square feet of positive absorption. Completions outpaced absorption by almost 600,000 square feet as 2.0 million square feet of space delivered. Vacancy rose incrementally to 3.8% but maintains an overall downward trend since 2020. Year-over-year, the vacancy rate has decreased by 220 basis points. Demand from ecommerce and tech manufacturing, along with new building stock, continues to drive rental rates higher. In the second quarter of 2022, the average industrial rental rate climbed to $12.27/SF, an increase of 5.8% in the past 12 months.
Download Austin Industrial Market Report 2Q22