Office Rental Market
- $40.86 2019 Avg. Asking Rent
- 6.60 % 2019 Avg. Vacancy Rate
- 2,040,689 2019 Office Completions (Sqft)
- 11,940,360 2020 Estimated Pipeline (Sqft)
Average Office Asking Rents by Class
2019 Average Office Rent per Square Foot
- Austin Class A Office Buildings$49.45
- Austin Class B Office Buildings$31.23
- Austin Class C Office Buildings$25.40
- TX Class A Office Buildings$34.48
- TX Class B Office Buildings$23.32
- TX Class C Office Buildings$16.03
Austin, TX Office Asking Rents by Class
Office asking rents vary across the Austin office market depending on several factors, one of which is property class. While rents for Class A office buildings in Austin averaged $49.45 per square foot in 2019, Class B office properties garnered average rental rates of $31.23 per square foot. Rental rates for Class C office property in Austin averaged $25.40 per square foot. On a statewide level, Class B office space rents averaged $23.32 per square foot, while rents for Class A office space across Texas averaged $34.48 per square foot. On average, Class C office properties in Texas commanded rents of $16.03 per square foot.
2019 OFFICE VACANCY RATES
| Submarket | Asking Rents | Vacancy Rates |
|---|---|---|
| Downtown | $62.03 | 3.50 % |
| East | $59.38 | 2.56 % |
| South | $50.46 | 4.65 % |
| West Central | $42.57 | 2.40 % |
| Southwest | $38.67 | 6.83 % |
| Northwest | $36.43 | 7.06 % |
| North | $35.75 | 5.20 % |
| Southeast | $34.78 | 6.67 % |
| Central | $31.24 | 4.91 % |
| Cedar Park | $29.44 | 8.11 % |
| Northeast | $20.87 | 15.20 % |
- The lowest office vacancy rate in 2019 in Austin was 2.40 % in the West Central submarket, where asking rents averaged $42.57.
- The highest office vacancy rate in 2019 in Austin was 15.20 % in the Northeast submarket, where asking rents averaged $20.87.
OFFICE CONSTRUCTION IN Austin, TX
- Austin, TX Total Sqft completed in 2019 2,040,689
- Austin, TX Total Sqft under construction in 2020 11,940,360
| Building name | Address | Total Sqft | Year built |
|---|---|---|---|
| 3M Austin Center | 6801 River Place Blvd, 78726 | 1,500,000 | 1988 |
| 7700 Parmer | 7700 West Parmer Lane, 78729 | 911,574 | 2000 |
| The Summit at Lantana | 7171 Southwest Pkwy, 78735 | 812,350 | 2006 |
| Dell Parmer South Campus - PS2 & PS3 | 701 East Parmer Lane, 78753 | 709,789 | 2001 |
| National Instruments Corporate Headquarters | 11500 North Mopac Expwy, 78759 | 624,856 | 2001 |
| Austin Centre | 701 Brazos Street, 78701 | 598,187 | 1986 |
| Oracle - Waterfront Campus | 2300 Oracle Way, 78710 | 560,000 | 2018 |
| Frost Bank Tower | 401 Congress Avenue, 78701 | 535,078 | 2003 |
| One Eleven | 111 Congress Avenue, 78701 | 518,385 | 1987 |
| One American Center | 600 Congress Avenue, 78701 | 503,951 | 1982 |
| Office building | Address | Sqft | Completed |
|---|---|---|---|
| Oracle Campus Phase II | 2300 Oracle Way, 78741 | 420,000 | 2020 |
| 300 Colorado | 300 Colorado Street, 78701 | 368,798 | 2020 |
| Domain 12 | 3110 Esperanza Crossing, 78758 | 320,102 | 2020 |
| Domain 10 | 11815 Alterra Pkwy, 78758 | 300,000 | 2020 |
| Austin Continuum | 14231 Tandem Blvd, 78728 | 254,806 | 2020 |
| SHI Austin HQ @ Garza Ranch | 3828 Pecana Trail, 78745 | 250,000 | 2020 |
| Highland 3 | 523 East Highland Blvd, 78752 | 250,000 | 2020 |
| Parmer 4.1 | 13013 McCallen Pass, 78753 | 196,268 | 2020 |
| The Grove - Office Building 1 | 4301 Bull Creek Road, 78731 | 185,000 | 2020 |
| Paloma Ridge - Building C | 13620 North FM 620, 78717 | 165,714 | 2020 |
Office Spaces for Rent in Texas
AUSTIN OFFICE SALES TRENDS
- $423.202019 Avg. Price per Sqft
- 107.70 %Y-o-Y Avg. PpSF Change
- $1.4B2019 Office Sales Volume
- 262019 Number of Transactions
In 2019, office sales in Austin averaged $423.20 per square foot. This marked a 107.70 % increase in office price per square foot, compared to the previous year. A total of 26 office sales closed on the Austin office market in 2019, amounting to a total sales volume of $1.4B.
Average Office Sale Price per Sqft
Austin, TX Sales Trends
- Austin Price per Sqft$423.20
- Texas Price per Sqft$253.24
Office Sales - Trend and Volume
- Austin, TX Total Office Sales Volume in 2019 $1.4B
- Austin, TX Total Number of Office Sales Closed in 2019 26
Largest Austin Office Sales in 2019
| Property name | Address | Date | Price |
|---|---|---|---|
| Chase Tower | 221 West 6th Street | 8/16/2019 | $241,000,000 |
| Third + Shoal | 607 West 3rd Street | 6/11/2019 | $203,571,000 |
| Domain Tower | 10721 Domain Drive | 8/2/2019 | $194,000,000 |
| Research Park Plaza I & II | 12401 Research Blvd | 6/28/2019 | $123,500,000 |
| Seton Family of Hospitals Administration Offices | 1345 Philomena Street | 12/30/2019 | $119,657,000 |
The Austin office market contains an inventory of 76,547,310 square feet of office space, in 1,199 buildings that are equal to or larger than 25,000 square feet.
This market trends report is based on analysis of city-level data. Averages were calculated based on values dated January 1st 2019 through December 31st 2019. Construction pipeline data shown is valid as of April 2020. The information on this page was compiled using data provided by our sister company, CommercialEdge – a market intelligence solution which offers comprehensive knowledge on all Austin commercial properties sized 25,000 square feet or larger.
While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.