Nationwide, Austin saw the highest year-over-year increase in office vacancy through April, with a 590 basis point jump to 22.0 percent. Other Sun Belt peer markets experienced decreases since the same period in 2022, such as Charlotte (-270 basis points), Nashville (-60 basis points) and Houston (-330 basis points), while Phoenix’s rate grew by 320 basis points.
Interestingly enough, Commercial Edge reveals that Austin is still leading the nation when it comes to office development on a percentage-of-stock scale; planned and under construction projects accounted for 24.7 percent of total inventory – more than any other market including Nashville (13.6 percent), Seattle (13.0 percent) and San Francisco (13%.
The two largest office projects currently under construction broke ground last year: The Republic – an 833,000 square foot 48 story tower developed by Lincoln Property Co., Phoenix Property Co., DivcoWest located downtown Austin .
