Figures

Austin Office Market Figures Q4 2022

January 17, 2023

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  • Positive direct net demand in newly constructed office buildings caused overall vacancy to dip 40 basis points (bps) quarter-over-quarter, from 19.3% in Q3 2022 to 18.9% in Q4 2022.

  • Sublease availabilities across the Austin office market continued to incline in the second half of 2022, with 975,554 sq. ft. of sublease space added to the market this quarter.
  • Average asking rates among all classes continued to trend upward to $47.62 per sq. ft. in Q4 2022, reflecting a $0.31 quarter-over-quarter increase and a $1.16 increase since Q1 2022.
  • One project totaling 19,200 sq. ft. delivered this quarter in the Far Northwest submarket.
  • Premium office product continued to hit the construction pipeline, with two buildings totaling 218,699 sq. ft. breaking ground in Q4 2022.
  • Austin continued to lead the top metros in the nation in return-to-work efforts with an average building occupancy rate of 65.9% as of December 7, 2022, according to Kastle Systems’ weekly Back to Work Barometer.