The amount of construction underway in Austin’s office market has dropped by almost half since last year — but it's still a large percentage of the total space in the city.
Some 5.9 million square feet of office space was underway in April, according to a June 27 CommercialEdge report. That's down from the 10.3 million registered in April 2022. It's also less than the 1.7 million square feet since the beginning of 2023.
Nevertheless, the Austin metro continues leads the nation when it comes to office development on a percentage-of-stock basis, according to CommercialEdge data. Planned and under-construction projects represented 24.7 percent of total inventory tallied in the study. Nashville took second place with 13.6 percent, and Seattle and San Francisco both had 13.0 percent.
Nineteen properties in the office market sold between January and April of 2023, with transaction of assets totaling roughly $183 million Prices averaged at $224.8 per square foot, down from last year’s average of $271 per square foot for the same period, and deal volume was also lower than in the same period in 2022, when office transactions totaled to $237 million.
Austin had roughly 1.7 million square feet of coworking space—1.8 percent of total rentable office space. The national average was 1.7 percent.