{"id":1004580405,"date":"2022-05-19T04:11:04","date_gmt":"2022-05-19T12:11:04","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004580405"},"modified":"2022-12-08T16:21:35","modified_gmt":"2022-12-09T00:21:35","slug":"austin-office-development-forged-ahead-in-q1","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/austin-office-development-forged-ahead-in-q1\/","title":{"rendered":"Austin: Office Development Forged Ahead in Q1"},"content":{"rendered":"<p><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004545005\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/phoenix-market-update-slow-and-steady-development-progress\/market-update-resized\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg\" data-orig-size=\"1200,930\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;Patricia Todoran&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1497549143&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Market-Update-resized\" data-image-description=\"&lt;p&gt;Office Sales Update Q2&lt;\/p&gt;\n\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg?w=1024\" class=\"alignright wp-image-1004545005 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg?w=300\" alt=\"\" width=\"300\" height=\"233\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg 1200w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg?resize=300,233 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg?resize=768,595 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/07\/Market-Update-resized.jpg?resize=1024,794 1024w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>As of March, Austin\u2019s office market saw the construction of nearly 10.1 million square feet of office space in the metro, representing 11.5 percent of total stock, according to CommercialEdge data.<\/p>\n<p>The Texas Capital\u2019s rapid expansion continued in the first quarter of the year. By the end of March, the office pipeline represented 11.5 percent of total stock, placing Austin ahead of all other U.S. markets for that metric. When factoring in planned stock to the under-construction pipeline, Austin\u2019s figure reaches a whopping 25.3 percent of total stock\u2014and is by far the best-performing market nationwide. Nashville is trailing the Texas Capital, with 8 percent and 15.4 percent, respectively.<\/p>\n<p>By the end of the first quarter of 2020, Austin\u2019s office pipeline consisted of 7.7 million square feet in the works. By then, the metro was already a leader with planned and under-construction stock representing 16.1 percent of total stock. The pandemic has fast-fueled this metro\u2019s remarkable expansion.<\/p>\n<h2>First quarter highlights<\/h2>\n<p>As expected, there were several notable events within the development sector during the first quarter of 2022:<\/p>\n<ul>\n<li>\n<div id=\"attachment_1004571612\" style=\"width: 310px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/03\/Kilroy_Austin_Domain_building.jpg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1004571612\" data-attachment-id=\"1004571612\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/kilroy-buys-austin-site-for-19-story-office-tower\/kilroy_austin_domain_building\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/03\/Kilroy_Austin_Domain_building.jpg\" data-orig-size=\"803,620\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Kilroy_Austin_Domain_building\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Image courtesy of Kilroy Realty Corp.&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/03\/Kilroy_Austin_Domain_building.jpg?w=803\" class=\"wp-image-1004571612 size-medium\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/03\/Kilroy_Austin_Domain_building.jpg?w=300\" alt=\"\" width=\"300\" height=\"232\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/03\/Kilroy_Austin_Domain_building.jpg 803w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/03\/Kilroy_Austin_Domain_building.jpg?resize=300,232 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/03\/Kilroy_Austin_Domain_building.jpg?resize=768,593 768w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><p id=\"caption-attachment-1004571612\" class=\"wp-caption-text\">Image courtesy of Kilroy Realty Corp.<\/p><\/div>\n<p>In early February, <strong>Inspire Development<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/2b-mixed-use-campus-in-austin-breaks-ground\/\">broke ground on Pearson Ranch<\/a>, a $2 billion mixed-use project in Northwest Austin;<\/li>\n<li>In March, <strong>Tishman Speyer<\/strong> and <strong>Ryan Cos.<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/tishman-speyer-ryan-cos-kick-off-austin-high-rise-project\/\">commenced construction on 321 West<\/a>, a 561,000-square-foot mixed-use tower in the CBD;<\/li>\n<li>Los Angeles-based <strong>Kilroy Realty Corp.<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/kilroy-buys-austin-site-for-19-story-office-tower\/\">picked up a 2.9-acre site<\/a> in the Domain submarket for $40 million, where it plans to develop a 19-story, roughly 493,000-square-foot office tower.<\/li>\n<\/ul>\n<p>By the end of March, Austin\u2019s office vacancy clocked in at 15.9 percent, down 10 basis points since the same period in 2021 and way up since March 2020, when it reached 7.4 percent. The average listing rate increased continuously since 2020, hitting $43.3 per square foot in March 2022.<\/p>\n<p>Landlords completed several office leases in the first three months of the year:<\/p>\n<ul>\n<li>Social media giant <strong>TikTok Inc.<\/strong> signed a <a href=\"https:\/\/www.commercialsearch.com\/news\/tiktok-inks-major-lease-in-austin\/\">125,000-square-foot sublease<\/a> at 300 Colorado in the CBD;<\/li>\n<li><strong>PacTrust<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/pactrust-lands-new-tenants-at-north-austin-complex\/\">inked two new leases<\/a> at its Braker Pointe I &amp; II office complex in Austin North, totaling 180,563 square feet;<\/li>\n<li><strong>The Austin Stone Community <\/strong>Church <a href=\"https:\/\/www.commercialsearch.com\/news\/aquila-signs-new-tenant-at-austin-campus\/\">signed a 37,362-square-foot lease<\/a> at Highland Tech Center.<\/li>\n<\/ul>\n<p><em><a href=\"https:\/\/www.commercialedge.com\/\">CommercialEdge<\/a>&nbsp;covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report&nbsp;<a href=\"https:\/\/www.commercialedge.com\/blog\/national-office-report\/\">here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Several significant developments were added to the market&#8217;s office pipeline in recent months.<\/p>\n","protected":false},"author":739,"featured_media":1004545005,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1578,21784,21782,21742,21747],"tags":[51047,50674],"class_list":["post-1004580405","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-austin","category-brokerage","category-development","category-latest","category-office","tag-marketupdate","tag-commercialedge"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO 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