14.8 million sqft. That’s how much office space is currently vacant in Downtown Austin, according to a report from commercial real estate firm Franklin Street. That’s ~24% of the commercial space in Austin’s Central Business District.
The “historic vacancy rate” in ATX is reportedly caused by “compressed space needs” since the pandemic, a decline in venture capital deployment, sizable sub-leases from tech companies, and more than 2.2 million sqft of new space being built in the last 18 months. Eleven of those individual vacancies exceed 50,000 sqft.
Here’s the bright side — the slowdown in leasing activity creates a favorable market for prospective tenants to move into Downtown or upgrade to newer properties. On the other hand, historic buildings are most likely to feel negative effects from a softening market.
New skyscrapers Waterline, Sixth & Guadalupe, ATX Tower, and The Republic have the most open space. Existing buildings, including 300 West Sixth, One American Center, and Austin Centre also have direct availability.
