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Austin\u2019s office market continued to send mixed signals through July. Investment activity remained strong, placing the metro among the top 10 U.S. markets by sales volume, while average listing rates stayed ahead of nearly all peer metros, Yardi Matrix data shows.<\/p>\n\n\n\n
At the same time, the metro\u2019s vacancy rate improved sharply year-over-year but remained among the highest nationally. Development activity also stayed elevated, with Austin\u2019s underway pipeline outpacing the national average.<\/p>\n\n\n\n
In terms of office conversions, Austin\u2019s policy environment is being shaped less by local incentives and more by broader state-level land-use reform. Texas SB 840 gives many commercial and office properties a clearer path to residential or mixed-use redevelopment while limiting certain local requirements, including impact fees. The city is still assessing how the law interacts with its downtown zoning and density bonus rules. Even so, conversions are likely to remain selective in the near term, as much of Austin\u2019s office inventory is newer and less suited to residential reuse.<\/p>\n\n\n\n