Austin Office Rent Price & Sales Report

2020 Office Space Rent & Sales

  • $42.69 2020 Avg. Asking Rent
  • 4.49 % Y-o-Y Avg. Asking Rent Change
  • 10.80 % 2020 Office Vacancy Rate
  • $215.3M2020 Total Office Sales
  • $281.07Avg. Sale Price/Sqft

Austin office price per square foot in 2020 was $42.69 on average. This marked a +4.49 % change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 10.80 % across all asset classes combined. The 7 transactions that closed here throughout 2020 amounted to a total sale volume of $215.3M. Austin office space commanded an average sale price per square foot of $281.07.

Average Rent by Office Class

2020 Average Office Rent per Square Foot

  • Austin Class A Office Space$52.13
  • Austin Class B Office Space$34.53
  • Austin Class C Office Space$28.21
  • Texas Class A Office Space$35.41
  • Texas Class B Office Space$23.36
  • Texas Class C Office Space$16.89

Austin, TX Office Asking Rents by Class

Average office rent in Austin rested at $42.69 per square foot in 2020. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Austin averaged $52.13 per square foot. Across all submarkets, class B office space recorded an average asking rent of $34.53 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $28.21 per square foot, on average. Comparably, statewide Texas average office rents by class in 2020 were: $35.41 per square foot for class A office space; $23.36 per square foot for class B office space; $16.89 per square foot for class C office space.

2020 Office Vacancy Rates in Austin

Submarket Asking Rents Vacancy Rates
East $60.78 18.09 %
Downtown $60.26 9.74 %
South $47.50 14.05 %
West Central $42.47 16.76 %
Southwest $37.95 8.68 %
North $36.29 5.30 %
Northwest $35.80 12.29 %
Southeast $35.70 6.65 %
Central $34.17 9.71 %
Cedar Park $30.30 16.57 %
Northeast $21.59 17.16 %
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Austin market was 10.80 % in 2020. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Austin was 5.30 % in the North submarket, while the highest office vacancy in the market was 18.09 %, recorded in East.

Office Spaces for Rent in Texas

Austin Office Sale Price per Sqft

  • $281.072020 Avg. Price per Sqft
  • -39.46 %Y-o-Y Avg. PpSF Change
  • $215.3M2020 Office Sales Volume
  • 72020 Number of Transactions

Austin, TX Sale Price per Sqft Trend

  • Austin Avg. Sale Price per Sqft in 2020$281.07
  • Texas Avg. Sale Price per Sqft in 2020$216.82
Austin office space cost in 2020 marked a -39.46 % change compared to the previous year. The sale price for office space in Austin averaged $281.07 per square foot in 2020, across all market subdivisions and asset classes. Conversely, the statewide Texas average office sale price during the same time period was $216.82 per square foot.

2020 Office Sales Volume

  • Austin, TX Total Office Sales Volume in 2020 $215.3M
  • Austin, TX Total Number of Office Sales Closed in 2020 7
A total of 7 deals closed on the Austin office market in 2020, adding up to a yearly sales volume of $215.3M. Notably, the largest transaction on the market saw Parmer 3.3 change hands for $110,812,000 on 2/14/2020.

Largest Austin Office Sales in 2020

Property name Address Date Price
Parmer 3.3 13011 McCallen Pass 2/14/2020 $110,812,000
Founders Building 6937 North Interstate 35 4/7/2020 $20,000,000
8317 Cross Park 8317 Cross Park Drive 1/16/2020 $17,600,000
Executive Plaza 14205 North Mopac Expwy 3/24/2020 $14,764,000
14050 Summit Drive 14050 Summit Drive 1/6/2020 $7,661,000
Data provided by Commercial Edge

2020 Office Construction in Austin, TX

  • Austin, TX Total Sqft completed in 2020 2,832,282
  • Austin, TX Total Sqft under construction in 2021 4,605,752

During 2020, 2,832,282 square feet of new office space were delivered across the market. At the close of 2020, the Austin office inventory included 23 buildings equal to or larger than 25,000 square feet, which comprised 2,832,282 square feet of office space. Looking forward, development activity throughout 2021 is estimated to add 4,605,752 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Austin
Office building Address Sqft Completed
Indeed Tower 200 West 6th Street, 78701 708,438 2021
The Quincy 93 Red River Street, 78701 396,889 2021
300 Colorado 300 Colorado Street, 78701 368,798 2021
RiverSouth 401 South 1st Street, 78704 350,611 2021
Domain Tower II 10721 Domain Drive, 78758 339,265 2021
Mueller Office Campus - Austin Energy HQ 4815 Mueller Blvd, 78723 274,282 2021
Austin Continuum I 14231 Tandem Blvd, 78728 254,806 2021
Alpha Building @ Mueller Business District 1900 Aldrich Street, 78723 236,428 2021
Eastbound 3232 East Cesar Chavez Street, 78702 233,577 2021
1836 San Jacinto Blvd 1836 San Jacinto Blvd, 78701 225,247 2021

Worth noting among recent office completions on the Austin market is Indeed Tower, which is currently the largest new office development in the city, at 708,438 square feet.

Data provided by Commercial Edge

See reports for nearby markets

This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2020 through December 31st 2020. Construction pipeline data represented herein is valid as of April 2021. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market 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.