Austin Office Report – Winter 2020
- Feb 27, 2020
Growth in Austin’s office sector is bolstered by sustained tenant demand and a robust development pipeline determined to match the ongoing corporate expansions and relocations. PwC and the Urban Land Institute’s Emerging Trends report ranked Austin the top market for overall real estate investment prospects for 2020.
Austin gained 10,100 office-using jobs through October, up 4.3 percent year-over-year, and according to the Texas Workforce Commission, the metro’s unemployment rate stood at 2.5 percent as of November, 100 basis points below the national rate. A tight labor market is expected to make hiring more difficult for employers, but Austin continues to work as a magnet, drawing in companies and residents alike. Data from the city demographer forecast that Austin’s population is set to surpass 1 million residents in 2020.
As of November, some 7.2 million square feet was under construction in Austin, equal to 10.6 percent of total inventory. The bulk (90 percent) of the pipeline underway is slated for delivery over the next three years. Trammell Crow’s Block 185 is the largest development in the metro, slated for delivery in 2022. Total investment volume in Austin amounted to $1.2 billion last year through November, as solid investor interest and quality office product keeps momentum going.