Availability remains high as leasing pulls back from previous year

The Austin office market saw an increase in leasing activity in Q4 2023, with leasing activity increasing to 15 million square feet (msf) for the quarter. This increase is attributed to several large leases being signed including Advanced Micro Devices renewing for nearly 444,000 square feet which accounted for 34% of total leasing activity. While leasing activity increased to end the year, total leasing activity in 2023 of 3.7 million square feet msf) was down from 5.3 msf reported in 2022. The slowdown in leasing from the technology sector has caused overall office space demand to remain low relative to a year ago. In addition, availability continues to remain high at 27.795, up 450 basis points (bps) from a year ago. With another 5.0 msf of office space currently under construction, of which the majority is speculative, availability levels is expected te increase over the near term.

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