Austin’s office market continues to expand at an unprecedented pace, led by significant corporate expansions and hiring coupled with significant organic growth, according to Colliers International. Technology companies continue to be the primary driver of Austin growth.
The city has eight major technology companies: Apple, Applied Materials, Dell, IBM, Indeed, Google, NXP and Samsung.
Austin’s office market recorded 1.4 million of square feet of leasing activity in second quarter 2019. Major transactions in the quarter included Visa leasing all of Research Park Plaza Building I (12401 Research Blvd.), Apple taking 115,000 square feet at Parmer 3.4 (13011 McCallen Pass) and the Texas Department of State Health Services renewing its lease at the Exchange Building (8407 Wall St.).
The strong demand has kept the office market extremely tight and has continued to push rental rates upward. Austin is set to deliver a huge amount of new office space in the next three years, and much of this space is pre-leased in advance of delivery. Occupancy levels will rise in the short term until some of the new projects start to deliver.
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