Austin's office market, especially in the tech sector, experienced a slowdown in the final quarter of 2022. Amideconomic concerns, quarterly leasing volume declined significantly, and the overall sublease availability increasedto 4.8 MSF which exceeds 2.0% of office inventory. Macroeconomic concerns including recession fears, highinterest rates and hybrid workplace model have decreased office demands for the tech industry.
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Savills Pulse & Perspectives: Workplace
Despite sweeping tech sector layoffs due to adjustments in over-hiringand falling short of forecasted growth, unemployment rates remainlow. For skilled labor in cloud computing, tech sales, and cybersecurity, it takes less than three months after a layoff to pivot intohigher growth sectors among mature and digitally transformedorganizations such as automotive, healthcare and logistics. A data-driven location and labor strategy across every industry remainscritical to achieving financial and growth objectives
- Amy Fobes
Portfolio Solutions Group, Savills North America