Austin’s office market suffered last year
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Loading... - christine rhoda
- 08 Mar 2023
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Net absorption in the state capital plunged over 200 percent in Q4 2022
Despite Texas leading the nation in the back-to-office movement, office markets in major metros of the Lone Star State are not immune to the chill sweeping the sector from Manhattan to Los Angeles, though Houston fared the best of the three last year.
Net absorption in the fourth quarter dropped dramatically year over year in Dallas and Austin, plunging from positive figures into negative territory. In Dallas, the drop since the end of 2021 was nearly 130 percent, ending 2022 at -266,000 square feet. In Austin, the fall was even steeper — over 208 percent, to finish the year at -499,000 square feet.
Only Houston saw a rise in net absorption — over 34 percent — but that still left the Bayou City with the lowest net absorption figure of all at -647,000 square feet.
Vacancy rates dropped slightly in Houston and Dallas, but in Austin, it went up by 2 percent, and the rate in all three cities remains above 20 percent.
Earlier last year, the big news in the Austin office market was that it was one of the hottest in the country — not only in terms of demand and rents, but construction as well.
In April 2022, asking rents went as high as $53 per square foot, according to a CBRE report — the first time rates hit more than $50 since the company began tracking Austin office rents in 1989. Read More…
