Austin, TX Office Overview
Among Austin's densest commercial real estate submarkets are the Downtown Central Business District, Barton Hills, and Colorado Crossing. With a metropolitan population of just over 2 million people, the city carries the well-deserved nickname of 'Silicon Hills', describing the importance of technology, pharmaceutical, and biotechnology industries to its development.
As of mid-2017, the Greater Austin market encompasses over 56 million square feet of office space, in properties larger than 50,000 square feet. As the capital of Texas and the fourth-most populous city in the State, the commercial real estate market in Austin sees robust demand for office space from the numerous technology companies headquartered in the metro area.
Austin, TX Office Inventory Description
Austin is considered a major center for the high-tech industry and is also home to Whole Foods’ world headquarters. With a gross metropolitan product of over $117 billion annually, the demand for office employment is strong. Over 54% of the inventory is made up of Class A buildings, with Class B space adding another 45%.
The Downtown Business District and the SoCo District along Lady Bird Lake see some of the strongest demand for Class A workspaces, and are home to prestigious properties such as Lakeshore Tower on Barton Springs Road, and the Frost Bank Tower and San Jacinto Center.
Austin, TX Commercial Inventory Breakdown
Total: 110,573,239 SF
By square footage range:
- 50k to 100k SF: 16,118,681 SF / 14.58% of total office
- 100k to 500k SF: 67,435,698 SF / 60.99% of total office
- 500k to 1M SF: 17,349,474 SF / 15.69% of total office
- > 1M SF: 9,669,386 SF / 8.74% of total office
- Class A+: 6,411,322 SF / 5.8% of total office
- Class A: 44,206,940 SF / 39.98% of total office
- Class B: 30,261,267 SF / 27.37% of total office
- Class C: 1,741,155 SF / 1.57% of total office
Top 10 Largest Office Buildings
|Office building||Address||Sqft||Year built|
|Apple West Parmer Lane Campus||6900 West Parmer Lane, 78727||2,000,000||2022|
|Domain on Riverside - Phase IV - Offices||1600 Wickersham Lane, 78741||1,950,000||n/a|
|Broadmoor Austin - Redevelopment||11501 Burnet Road, 78758||1,570,000||n/a|
|305 South Congress - Office Tower 2||305 South Congress Avenue, 78704||1,500,000||n/a|
|3M Austin Center||6801 River Place Blvd, 78726||1,500,000||1988|
|6 x Guadalupe||400 West 6th Street, 78701||1,149,386||2022|
|Domain on Riverside - Phase V - Offices||4700 East Riverside Drive, 78741||911,925||n/a|
|7700 Parmer||7700 West Parmer Lane, 78729||911,574||2000|
|ATX Tower West||201 East Fourth Street, 78701||899,000||n/a|
|The Republic||401 West 4th Street, 78701||820,410||n/a|
Most Recently-Built Office Buildings
|Office building||Address||Sqft||Year built|
|Third + Shoal||607 West 3rd Street, 78703||345,000||2019|
|Parmer 3.3||13011 McCallen Pass, 78753||204,000||2019|
|Office at Saltillo||901 East 5th Street, 78702||180,892||2019|
|Four Points Centre - Building III||11120 Four Points Drive, 78726||164,818||2019|
|SXSW Center||1400 Lavaca Street, 78701||147,627||2019|
|1801 East 6th||1801 East 6th Street, 78702||134,368||2019|
|901 East 6th||901 East 6th Street, 78702||129,444||2019|
|Rollingwood Center III||2500 Bee Cave Road, 78746||128,500||2019|
|Parmer 3.4||13011 McCallen Pass, 78753||116,000||2019|
|2010 East 6th Street||2010 East 6th Street, 78702||114,000||2019|
Austin, TX Green Office Space
While not yet ranking in the Top 30 Green Office Markets in the U.S., green workspaces are on the rise, with more than a dozen projects scattered throughout the metropolitan area.
The Whole Foods Office Tower on Domain Drive in Austin is a prime example of a LEED-certified building. With over 280,000 square feet of space on eight floors, the building hosts a Whole Foods Market on the ground floor. With both national and global investors seek out energy-efficient assets for their use and portfolios, this trend for low-emission green properties will likely continue its growth in Austin.
The 2017 National Green Building Adoption Index looked at commercial properties in 30 major U.S. markets and found that, including EPA Energy Star-labeled buildings, the percentage of green certification has increased from under 5% in 2005 to 38% as of mid-2017.
Austin, TX's Top Office-Using Sectors
While currently a major high tech center, Austin is also emerging as a hub for the pharmaceutical and biotechnology industries. These three business sectors combined create a major demand for Class A office space in the area.
- High Technology – companies such as Dell, IBM, Cisco Systems, eBay, and PayPal.
- Pharmaceutical & Health Care – ranked as the #12 center for biotech and life science companies in the U.S., the city hosts companies such as AnthroCare Corporation and Pharmaceutical Product Development.
- Biotechnology – companies such as BioWare, Life Technologies, Oppenheimer Biotechnology, and XBiotech.
- Corporate Offices – for companies such as Freescale Semiconductor, National Western Life, Cirrus Logic, and Xerox, which all have significant operations in Austin.
- Total Population935,755
- Male Population(50.7 %) 474,247
- Female Population(49.3 %) 461,508
- Median Age33.00
- Average Household Income$97,331
- Median Household Income$67,462
- Median Income Under 25$29,632
- Median Income 25-44$69,543
- Median Income 45-64$79,728
- Median Income Over 65$55,687
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