Austin Market Update: Office Sector’s Growth Spurt

New product is being added here at a faster rate than anywhere in the U.S., according to CommercialEdge data.

By the end of July, Austin’s rapidly expanding office pipeline clocked in at 9.1 million square feet, representing 10.5 percent of total stock, according to CommercialEdge. On a year-over-year basis, the under-construction stock expanded by 13.5 percent.

Austin’s pipeline is still topping the U.S. list of relative stock performance, with its relative pipeline almost quadruple the national average of 2.4 percent. The metro is among the minority of cities to have increased their under-construction stock since the beginning of the year, along with Miami, Atlanta, Dallas and Orlando. Nashville (5.7 percent) is second on the list—roughly half of Austin’s figure—followed by Charlotte (5.2 percent), Boston (5 percent) and Brooklyn (5 percent).

Slated to become the metro’s tallest office building, Trammel Crow and MSD Capital LP’s 35-story, 814,081-square-foot Google tower topped out in July. The Class A high-rise broke ground in early 2019, with Google announcing its full-building commitment around the same time. Designed by famed architecture studio Pelli Clarke Pelli Architects, the project is on track for delivery in May 2022.

Tishman Speyer’s The Foundry II property was one of the metros office projects that come online in July. The two-building asset comprising 240,000 square feet represented Tishman Speyer’s debut within the Austin market back in February 2021. Developed by Cielo Property Group, both buildings were designed to meet LEED Gold standards.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.

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