Austin, TX Office Overview
Among Austin’s densest commercial real estate submarkets are the Downtown Austin Central Business District, Barton Hills, and Colorado Crossing office space. With a metropolitan population of just over 2 million people, the city carries the well-deserved nickname of 'Silicon Hills', describing how the Austin office market is driven by the technology, pharmaceutical, and biotechnology industries.
As of mid-2017, the Greater Austin commercial real estate market encompasses over 56 million square feet of existing 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 office space in Austin is Class A, with Class B space adding another 45% of inventory to the Austin office market.
The Downtown Business District and the SoCo District along Lady Bird Lake see some of the strongest demand for Class A office space in Austin, and are home to prestigious office properties such as Lakeshore Tower on Barton Springs Road, and the Frost Bank Tower and San Jacinto Center in Downtown Austin.
Austin, TX Commercial Inventory Breakdown
Total: 94,455,916 SF
By square footage range:
- 50k to 100k SF: 14,558,525 SF / 15.41% of total office
- 100k to 500k SF: 60,943,987 SF / 64.52% of total office
- 500k to 1M SF: 11,351,936 SF / 12.02% of total office
- > 1M SF: 7,601,468 SF / 8.05% of total office
- Class A+: 3,185,848 SF / 3.37% of total office
- Class A: 41,766,222 SF / 44.22% of total office
- Class B: 28,119,220 SF / 29.77% of total office
- Class C: 1,255,627 SF / 1.33% of total office
Austin, TX Green Office Space
While not yet ranking in the Top 30 Green Office Markets in the U.S., green office space in Austin is 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, this Downtown Austin building hosts a Whole Foods Market on the ground floor. As tenants, along with national and global investors seek out green certified office assets for their use and portfolios, the green office trend will continue to take root in Austin.
The 2017 National Green Building Adoption Index looked at commercial office 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 Austin metropolitan area.
- High Technology – Some of the largest employers and greatest users of Class A office space in Austin are technology companies such as Dell, IBM, Cisco Systems, eBay, and PayPal.
- Pharmaceutical & Health Care – Austin is ranked as the #12 center for biotech and life science companies in the U.S., with companies such as AnthroCare Corporation and Pharmaceutical Product Development calling Austin home.
- Biotechnology – Companies such as BioWare, Life Technologies, Oppenheimer Biotechnology, and XBiotech are all based in the Austin metro area.
- Corporate Offices – The demand for while collar office space in Chicago also comes from companies such as Freescale Semiconductor, National Western Life, Cirrus Logic, and Xerox, which all have significant operations in Austin.
- Total Population916,906
- Male Population(50.6 %) 463,869
- Female Population(49.4 %) 453,037
- Median Age32.70
- Average Household Income$91,811
- Median Household Income$63,717
- Median Income Under 25$27,321
- Median Income 25-44$65,661
- Median Income 45-64$75,663
- Median Income Over 65$53,690
Over its 180-year history, Austin has grown from a settlement of fewer than 1,000 people to one of the country’s most vibrant metros. Check out the timeline-mapped rise of Downtown Austin’s skyward buildings, starting with the Texas State Capitol building.
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