The Austin Commercial Real Estate Market

Austin, Texas leads the charge as one of the US' fastest-growing economies, making it ripe for commercial real estate interests.

The state capital of Texas has witnessed a tide of growth from workers and businesses, especially in the technology sector. Commercial real estate investors and tenants have flocked to Austin's promising economy and favorable investment returns as the city grows. Crexi's CRE marketplace connects interested parties to hundreds of available Austin commercial properties, providing them with the best tech tools to analyze and invest.

Austin brokers and those representing Austin listings can harness Crexi's powerful technology suite to manage leads and deftly navigate properties from list to close. To date, Crexi has empowered brokers to transact over $6150 billion in commercial assets, representing more than $7 trillion in property value.

Crexi supports Austin, Round Rock, Georgetown, Lakeway, Buda, and the surrounding communities as the nation's fastest-growing online CRE platform.

The State of Austin Commercial Real Estate 

Located in the heart of Central Texas, Austin is the state's capital and a vibrant hub for economic development, cultural richness, and technological innovation. Encompassing six counties with Austin at its core, the area is recognized for its rapid population growth and robust job market. 

The Austin area's economy is a powerhouse fueled by a mix of traditional industries and modern sectors. It has become a critical center for technology, with numerous startups and established tech companies calling it home, earning it the nickname "Silicon Hills." 

Beyond tech, the region boasts healthcare, education, and manufacturing strengths, contributing to its diverse economic landscape. The economy is coupled with a rich cultural scene, from legendary live music and festivals to renowned culinary offerings, making Austin a place to work, invest, live, and play. 

The commercial real estate market in Austin is also incredibly active, with developers responding to the area's growth, making it an attractive spot for investors and newcomers seeking opportunities in a thriving community.

Austin Regional Breakdown

The Austin metropolitan area has been experiencing a remarkable population growth trend, distinguishing itself as one of the fastest-growing regions in the United States. This surge is largely driven by an influx of individuals and families attracted by the area's economic prosperity, diverse cultural landscape, and high quality of life, earning the nickname "millennial magnet."

• Austin is home to nearly 975,000 in the city and more than 2.4 million in the metropolitan area.
• The median age is 35.9, which is about 90% of the figure in the US.
• The population of Austin has grown by 23% since 2010, a rate faster than that of the state of Texas, according to the United States Census Bureau.
• The six-county metro area comprises Burnett, Williamson, Travis, Hays, Bastrop, and Caldwell counties.
• Per capita income is $53,527, about 1.3 times the amount in the US, based on data on CensusReporter.org.
• The median household income in Austin is $94,604, a figure about 25% higher than in the US.

Austin Job Market 

Austin's economy is a robust blend of industry sectors, with a significant emphasis on technological innovation and creative enterprises. The city has become an attractive hub for major technology companies, such as Dell, IBM, Tesla, and Apple, which have established significant operations in the area, contributing to the city's reputation as a tech epicenter. 

Additionally, Austin's status as a cultural and educational center, home to the University of Texas at Austin, fosters a unique synergy between academia and industry, driving research, development, and employment opportunities. The local government has actively supported this economic diversity through initiatives to encourage startup growth and attract investment in green energy and digital media.

• Austin-Round Rock MSA gross domestic product is over $222 billion, growing by nearly 60% since 2010, according to the St. Louis Federal Reserve (FRED).
• Austin is the 7th best-performing metro for job growth, adding over 40,000 jobs in the past 12 months.
• The unemployment rate in Austin is 3.4%.
• Austin's key industries include advanced manufacturing, automotive, clean technology, financial services, life sciences, and space technology.
• Some of Austin's major employers are Amazon Fulfillment Centers, Apple, Austin Independent School District, Dell Technologies, H-E-B, Samsung Austin Semiconductor, and the State of Texas.
• Austin is ranked as the 5th best place to find a job by WalletHub, based on factors such as job opportunities, employment growth, and monthly average starting salary.
• Tesla continues to expand its footprint in Central Texas, and two major downtown office buildings - ATX Tower and 415 Colorado - are expected to be delivered in 2024.
• Austin has also topped the list for headquarters relocations in the United States, according to a recent report by CBRE.
• Over 52% of residents hold a bachelor's degree or higher, a rate about 1.5 times more than in the US.
•  The Austin area is home to major institutions of higher education, including The University of Texas at Austin, Texas State University in nearby San Marcos, and Austin Community College.
• The metro area transportation network includes major interstates I-35 and US Highway 183, Austin-Bergstrom International Airport (AUS), and Capital Metro for public transit.

Austin Industrial Market

The Austin industrial market is in a significant expansion phase, marked by a noticeable influx of new developments. While this growth has increased the overall vacancy rate, the market has maintained sustained positive absorption and robust leasing activity, reflecting strong demand. 

Market overview (Cushman & Wakefield Q4 2023 Austin Industrial Report) 

• Inventory: 87,302,851 SF
• Vacancy rate: 9.1%
• Absorption: 3,946,925 SF (in 2023)
• Key leases by tenant: Tesla, HBPO, US Farathane
• Deliveries: 6,854,468
• Under construction: 11,360,331 SF 
• Largest submarkets: Southeast, North, Far Northeast, Northeast

Crexi Insights

These are the most recent Austin industrial lease and sales trends from Crexi Insights (as of April 2024):

For Lease (active)

• Asking rate/SqFt (median): $18 per year
• Median SqFt/listing: 8,675
• Days on market: 207
• Total listings on Crexi: 199 spaces

For Sale (active)

• Median asking price: $1.77 million
• Price/SqFt: $258
• Asking cap rate: 3.7%
• Days on market: 268
• Total listings on Crexi: 23

Sales Comps (past 12 months)

• Median sold price: $1.68 million
• Sold price/SqFt: $253
• Total sales volume: $192 million
• Sold cap rate: 5.5%
• Median SqFt sold/transaction: 6,355
• Total SqFt sold: 471,000 
• Days on market (median): 241

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Austin Office Market

The Austin office market is undergoing a period of adjustment. Despite a modest uptick in absorption rates towards the end of 2023 and a focus on smaller leasing transactions, challenges such as rising vacancy rates and a substantial sublease inventory persist. However, there's a silver lining as businesses adapt. They show a preference for optimizing costs by selecting older Class A or high-quality Class B spaces, alongside an increasing willingness to negotiate concessions and tenant improvements.

Market overview (Colliers Q4 2023 Austin Office Market Report)

• Inventory: 87,547,529 SF
• Vacancy rate: 27.4%
• Net absorption: -1,727,192 SF (in 2023)
• Deliveries: 1,985,708 SF
• Under construction: 5,178,484 SF
• Key leases by tenant: Advanced Micro Devices, Tokyo Electron, Infinitum, Box
• Largest submarkets: Central Business District, Northwest, Southwest

Crexi Insights

Detailed information on the most recent Austin office market sales and leasing trends is provided by Crexi Insights, as of April 2024.

For Lease (active)

• Asking rate/SqFt (median): $28 per year
• Median SqFt/listing: 3,213 SF
• Days on market: 290
• Total listings on Crexi: 1,208 spaces

For Sale (active)

• Median asking price: $1.77 million
• Price/SqFt: $495 
• Asking cap rate: 6.0%
• Days on market: 174
• Total listings on Crexi: 95

Sales Comps (past 12 months)

• Median sold price: $1.52 million
• Sold price/SqFt: $397
• Total sales volume: $197 million
• Sold cap rate: 5.5%
• Median SqFt sold/transaction: 4,576 SF
• Days on market (median): 360

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Austin Retail Market

The Austin retail market is experiencing a vibrant phase, buoyed by continuous population growth and robust demand, leading to the tenth consecutive quarter of positive net absorption. With 56 new projects adding nearly two million square feet of retail space under construction and an impressive annual net absorption rate not seen since 2015, the market is adjusting dynamically to accommodate the expanding needs of its residents.

Market overview (Partners Real Estate Q3 2023) 

• Inventory: 102,951,567 SF
• Vacancy rate: 3.2%
• Net absorption: 1,626,299 SF (in 2023)
• Deliveries: 1,778,396 SF (through Q3 2023)
• Under construction: 2,421,949 SF
• Largest submarkets: South, Hays County, Cedar Park, Northwest

Crexi Insights

Retail lease and sales trends from Crexi Insights (as of April 2024):

For Lease (active)

• Asking rate/SqFt (median): $28 per year
• Median SqFt/listing: 2,154 SF
• Days on market: 243
• Total listings on Crexi: 495 spaces

For Sale (active)

• Median asking price: $3.25 million
• Price/SqFt: $531
• Asking cap rate: 6.0%
• Days on market: 163
• Total listings on Crexi: 77 

Sales Comps (past 12 months)

• Median sold price: $1.62 million
• Sold price/SqFt: $362
• Total sales volume: $249 million
• Sold cap rate: 5.5%
• Median SqFt sold/transaction: 4,467 SF
• Days on market (median): 289

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Austin Multifamily Market

The Austin multifamily market is riding a wave of robust demand fueled by a youthful demographic and an influx of new residents drawn to the city's dynamic mix of affordability, job opportunities, and quality amenities, particularly in the Georgetown/Leander and Pflugerville submarkets. Despite facing challenges such as an oversupply, with a record-high annual completion of units in 2023 and even more on the horizon for 2024, Austin's multifamily sector doubled its demand from the previous year.

Market overview (Colliers Q4 2023 Austin Multifamily Market Report)

• Total housing units: 1,048,041
• Multi-unit inventory: 336,472 units
• Vacancy rate: 5.9%
• Average rent per unit: $1,593
• Absorption: 36,316
• Units delivered: 33,768
• Under construction: 39,060 units
• Largest submarkets: Northwest Austin, North Austin, Pflugerville, Midtown Austin

Crexi Insights

Here are the most recent Austin multifamily Insights from Crexi (as of April 2024):

For Sale (active)

• Median asking price: $1.62 million
• Price/SqFt: $396
• Price/Unit: $300,000
• Asking cap rate: 4.9%
• Days on market: 109
• Total listings on Crexi: 40

Sales Comps (past 12 months)

• Median sold price: $608,000
• Sold price/SqFt: $240
• Sold price/unit: $272,000
• Total sales volume: $1.08 billion
• Sold cap rate: 5.5%
• Total SqFt sold: 5.67 million
• Days on market (median): 462

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Get more in-depth Austin market data with Crexi Intelligence.