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Austin\u2019s office market opened 2026 with mixed signals. Transaction activity remained muted through the first two months of the year, while vacancy stayed elevated\u2014even after a meaningful year-over-year decline\u2014keeping fundamentals under pressure relative to most peer metros.<\/p>\n\n\n\n
At the same time, development metrics continued to stand out. Austin maintained a comparatively active construction pipeline and a sizable share of projects in planning, even as deliveries were limited early in the year. Asking rents remained well above the national average, and the metro\u2019s coworking footprint continued to expand modestly, positioning flex space as a growing slice of its office inventory.<\/p>\n\n\n\n
Additionally, in 2025 Austin leaned on state-level policy changes to address its elevated office availability. One key measure, Texas SB 840, is intended to speed housing production by allowing office and retail properties to be converted into mixed-use or residential without lengthy rezoning processes. Still, because much of Austin\u2019s inventory is relatively new, conversion activity\u2014and the near-term pipeline it could generate\u2014may remain limited.<\/p>\n\n\n\n