Q2 2021 | Austin Office | Research & Forecast Commercial Real Estate Report

The ravaging effects of the pandemic on the commercial real estate market have subsided for the time being in the Lone Star State...
By: Colliers International
 
AUSTIN, Texas - Aug. 2, 2021 - PRLog -- As Austin commercial real estate continues to take strides forward, many of the subleases that proliferated in the market during the height of COVID-19 have started to dissipate at a rapid pace as a number of companies pulled their spaces in order to re-occupy. Mounting relocations/expansions from other markets have gobbled up significant portions of the remaining attractive sublease options (F45 Training, Canva, Rev and a host of other players have demonstrated this trend in just the last few months). Furthermore, with the introduction of vaccinations, many companies who were awaiting post-pandemic clarity have decided to pull the trigger in 21'Q2 rather than biding their time. It is important to note, however, that this activity has been concentrated mostly in move-in-ready space on short term leases (three years or under). This is potentially attributable to two factors: (1) companies need to make real estate decisions as employees begin phasing back into the office, and (2) there remains some hesitancy as to how the workplace will look in the immediate and long-term, driving the need for shorter-term length. As a result, tenant appetite for large build-outs on long term leases (five years or more) is very low, forcing many landlords currently sitting on delivered product or to build out specs suites and negotiate shorter-term leases in order to compete. While this type of user activity is disadvantageous for landlords in the near term, the eroding subleases will likely....Read more at www.colliers.com/austin

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Tags:Austin Office Market
Industry:Real Estate
Location:Austin - Texas - United States
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