As the US economy recovers from the COVID-19 pandemic, the Austin market is beginning to show signs of life.

1. 20Q1 20Q4 21Q1
New Supply
(in Thousands of SF)
1,336.33 83.78 893.74
Net Absorption
(in Thousands of SF)
(35.45) (555.29) (628.92)
Overall Vacancy 13.0% 17.1% 17.8%
Under
Construction
(in Thousands of SF)
5,319.76 5,916.10 5,830.25
CBD Class A Asking
Lease Rates (NNN)
$62.51 $61.02 $63.71
Overall Asking
Lease Rates (NNN)
$35.93 $44.74 $45.60
Sale
Frontera Crossing
North/Domain | 164K SF
Lease
The Grove II
West Central | 47K SF
TX Municipal Retirement System
Lease
Penn Field
South | 44K SF
F45 Training
Sale
Foundry I
East | 76K SF
Lease
Indeed Tower
CBD | 50K SF
Vinson & Elkins
YOY
FORECAST
YOY
YOY
FORECAST
YOY
FORECAST
FORECAST
Office
Austin,
TX
21Q1
Boots On the Ground
As the US economy recovers from the COVID-19 pandemic, the Austin market is beginning to show signs of life. Our team
continues to see heavy demand for both industrial and investment products, however, rebounding office activity remains the
highlight of the quarter. Over the past 60 days, office property tours have increased three-fold, long postponed leases have been
inked and discussions with C-Suite executives considering a move to the city have swelled. Additionally, many Austin companies
will likely start reoccupying their offices this summer/fall, a clear indication that the market is correcting more quickly than
initially expected.
Unemployment Rate
Market Indicators
Historic Comparison
5.3%
Austin
Unemployment
Rate
1.55%
US 10 Year
Treasury Note
6.0%
US
Unemployment
Rate
Vacancy Rate
17.8%
Net Absorption
-629K SF
Overall Class A Asking
Lease Rates (FSG)
$49.88/SF
Under
Construction
5.8M SF
Key Takeaways
• Citywide leasing activity return to normalcy: more transactions
completed during Q1 2021 vs. the last 12 months
• 300 Colorado delivers – 100% pre-leased by Parsley Energy,
however, entirety of building available for sublease
• COVID vaccine coupled with Proposition B “Homeless Camping
Ban” likely to impact market favorably
Recent Transactions
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Jan
2018
Mar
2018
May
2018
Jul
2018
Sep
2018
Nov
2018
Jan
2019
Mar
2019
May
2019
Jul
2019
Sep
2019
Nov
2019
Jan
2020
Mar
2020
May
2020
Jul
2020
Sep
2020
Nov
2020
Jan
2021
Mar
2021
Austin Texas US

2. Colliers | Austin | 21Q1 | Office Report
Office
Austin,
TX
21Q1
Sublease Environment
26%
2%
12%
4%
4%
5%
27%
1%
19%
CBD
Central & West Central
East
North / Domain
Northeast
Far Northwest
Northwest
South
Southwest
20Q1 20Q4 21Q1
CBD 139,946 662,096 791,981
Central & West Central 35,517 63,979 70,457
East 58,805 222,983 381,831
Domain 8,753 103,007 106,960
Northeast 165,160 119,636 119,636
Far Northwest 88,861 96,124 162,377
Northwest 311,828 657,467 846,869
South – 38,714 35,909
Southwest 189,722 358,329 571,151
The Market, at a Glance
As Austin began to wake up from the winter slumber and employees began to peek behind the curtains of their home office,
Winter Storm Uri swept through Texas in mid-February and put a freeze on leasing and sales activity for almost two weeks as
millions of Texans battled through the aftermath of unfamiliar weather. As evident by the Bluebonnets blooming though, Texas
remained resilient and pushed through to a warmer (and vaccinated) environment, where Austin continues to remain toward
the top of the list for institutional investments, office expansions and headquarter relocations.
More than 10 companies announced the opening of an office or headquarters relocation in Austin in Q1 of 2021, with a dozen
other investment and development firms acquiring a real estate asset in the greater Austin area. F45 Training and Tishman
Speyer are two notable new tenants and investors in Austin. The Australian-based fitness franchise F45 signed a 44,000 SF,
8-year lease in South Austin’s Penn Field offices, and New York-based Tishman Speyer made their first Austin purchase with the
acquisition of the Foundry I, a 76,000 SF office project on the Eastside. In addition to Austin’s new residents, some of our local
and established groups stretched out for some elbowroom as well. Vinson & Elkins made a pivotal move and leased 50,000 SF
in the Indeed Tower downtown, breaking away from their previous suburban location, and Texas Municipal Retirement System
signed a 47,000 SF lease at The Grove, an Endeavor project in Central Austin. While Q1 saw more completed transactions than
any other quarter in the past year, overall numbers are still lagging behind this activity with negative absorption rates and
an increasing supply of sublease space, though most of our sublease space this quarter can be attributed to Parsley Energy
(369,000 SF, 300 Colorado) and Spiceworks (49,000 SF, 3600 San Clemente).
Future Forecast
Developers and buyers continue to be bullish on Austin, and it is hard to disagree otherwise. Even with the option to work
from home likely to be a standard offering by employers moving forward, the bigger focus in Austin is not when employees are
headed back into the office, but rather who is moving here next. The Austin Chamber of Commerce is tracking a record number
of active prospects for incentive-worthy relocations and the residential real estate market is experiencing a supply-and-demand
issue, to say the least. Those are two good indicators that Austin still has some growing to do, which means pricing is likely to do
the same.

3. Colliers | Austin | 21Q1 | Office Report
Office
Austin,
TX
21Q1
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00 Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
CBD Citywide Vacancy Rate
Notable Completions
Jan ‘21
Jan ‘21 Apr ‘21
Apr ‘21
(1,500,000)
(1,000,000)
(500,000)
0
500,000
1,000,000
1,500,000
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Deliveries Net Absorption
Bouldin Creek
167,130 SF | South
Unico Properties
Austin Continuum
254,806 SF | North
Southwest Value Partners
ShadySide
64,674 SF | East
Saxum Real Estate
Seven Oaks West
130,152 SF | Southwest
Miller Global Properties
Eastlake at Tillery
172,423 SF | East
Cypress Real Estate Advisors
300 Colorado
353,938 SF | CBD
Cousins Properties
(1,500,000)
(1,000,000)
(500,000)
0
500,000
1,000,000
1,500,000
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Deliveries Net Absorption
Supply & Absorption
Pandemic challenges forced many to shutter their doors
during the past year, and several brand-name institutions
(Google, Indeed, Facebook, etc.) found themselves
potentially over-committed on projects not yet under
construction. As a result. sublease space of +3.0M SF
flooded into the market, causing consecutive quarters of
negative absorption (Q1 2020 absorption of -630K SF).
With the introduction of a COVID vaccine, however, Austin
can expect a rebound in leasing activity and an upwards
trend in absorption levels, which should help relieve the
pressure from future development projects (+5.8M SF
under construction). Furthermore, Tesla’s Gigafactory
served as a de facto “Vote of Confidence”, spurring
additional commercial interest in the city.
Direct Lease Rates
A citywide asking rate of $45.60/SF comes in a slight step
above Q4 2020’s rate of $44.74/SF, largely due to rising
OpEx expenses. Although rental rates have remained
steady Quarter over quarter, Landlords aren’t hesitant to
use flexible concession packages and reduced lease-terms
in order to secure tenants. An influx of newly constructed
space with significant availability (as of Q1 2021), projects
under construction are ±40% leased) will pressure building
owners even further, however, a revitalization of leasing
activity should allow rates to remain steady during the
remainder of 2021.

4. Colliers | Austin | 21Q1 | Office Report
Office
Austin,
TX
21Q1
Upcoming Projects
Citywide Construction
52%
35%
5%
5%
3%
CBD
East
Far Northwest
Southwest
Central
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
Q2
2021
Q3
2021
Q4
2021
2022
2023
Leased Under Construction
405 Colorado
CBD
18% Leased
2Q '21
206,946
Indeed Tower
CBD
61% Leased
2Q '21
669,130
Austin Energy HQ
East
TBD
2Q '21
275,000
Domain Tower 2
North
TBD
3Q '21
330,000
405 Colorado
CBD
18% Leased
2Q '21
206,946
Indeed Tower
CBD
61% Leased
2Q '21
669,130
Austin Energy HQ
East
TBD
2Q '21
275,000
Domain Tower 2
North
TBD
3Q '21
330,000
RiverSouth
South
TBD
3Q '21
350,661
Indeed Tower
CBD
61% Leased
2Q '21
669,130
Austin Energy HQ
East
TBD
2Q '21
275,000
Domain Tower 2
North
TBD
3Q '21
330,000
RiverSouth
South
TBD
3Q '21
350,661
Block 185
CBD
100%
2022
796,525
Indeed Tower
CBD
61% Leased
2Q '21
669,130
Austin Energy HQ
East
TBD
2Q '21
275,000
Domain Tower 2
North
TBD
3Q '21
330,000
RiverSouth
South
TBD
3Q '21
350,661
Block 185
CBD
100%
2022
796,525
Austin Energy HQ
East
TBD
2Q '21
275,000
Domain Tower 2
North
TBD
3Q '21
330,000
RiverSouth
South
TBD
3Q '21
350,661
Block 185
CBD
100%
2022
796,525
Domain Tower 2
North
TBD
3Q '21
330,000
RiverSouth
South
TBD
3Q '21
350,661
Block 185
CBD
100%
2022
796,525
405 Colorado St.
Brandywine Realty
Trust
206,946 SF | CBD
Q2 2021 Delivery
14% Leased
Domain Tower 2
Stonelake Capital
Partners
330,000 SF | North
Q3 2021 Delivery
1% Leased
RiverSouth
Stream Realty
Partners
350,661 SF | South
Q3 2021 Delivery
22% Leased
Block 185
Trammel Crow
Company
796,525 SF | CBD
2023 Delivery
100% Leased
Austin Energy HQ
Catellus
Development Corp
275,000 SF | East
Q2 2021 Delivery
100% Leased
Indeed Tower
Trammell Crow
Company
669,130 SF | CBD
Q2 2021 Delivery
76% Leased
Q2 2021 Expected Deliveries

5. Copyright © 2021 Colliers
The information contained herein has been obtained from sources
deemed reliable. While every reasonable effort has been made to
ensure its accuracy, we cannot guarantee it. No responsibility is
assumed for any inaccuracies. Readers are encouraged to consult
their professional advisors prior to acting on any of the material
contained in this report.
FOR MORE INFORMATION
John O’Sullivan
Research Associate
Austin
+1 512 539 3012
john.o’sullivan@colliers.com
David Bremer
Managing Director
Austin
+1 512 539 3014
david.bremer@colliers.com
Submarket Existing Inventory (SF) Direct Vacancy (SF) Sublease Vacancy (SF) Overall Vacancy Rate
Quarterly Net
Absorption (SF)
Weighted Average
Asking Rate
Downtown
CBD 11,924,009 1,178,408 791,981 16.5% 65,505 $61.22
TOTAL 11,924,009 1,178,408 791,981 16.5% 65,505 $61.22
Market Total
CBD 11,924,009 1,178,408 791,981 16.5% 65,505 $61.22
Suburban 45,776,585 5,984,110 2,340,461 18.2% (694,425) $41.32
TOTAL 57,700,594 7,162,518 3,132,442 17.8% (628,920) $45.60
Suburban
Central & West Central 2,973,144 339,313 70,457 13.8% 34,312 $47.22
East 1,852,922 512,473 381,831 48.3% 15,568 $56.01
North / Domain 4,364,772 582,802 106,960 15.8% (98,679) $39.56
Northeast 2,649,981 573,504 119,636 26.2% (96,630) $36.52
Far Northwest 4,264,803 536,436 162,377 16.4% (61,936) $40.02
Northwest 12,903,660 1,544,639 846,869 18.5% (334,935) $38.02
Round Rock 1,439,707 145,510 37,271 12.7% (6,184) $34.18
South 1,769,268 474,287 35,909 28.8% 17,253 $51.40
Southeast 2,177,582 258,619 8,000 12.2% (6,531) $34.89
Southwest 11,380,746 1,016,527 571,151 14.0% (156,663) $43.96
TOTAL 45,776,585 5,984,110 2,340,461 18.2% (694,425) $41.32
Austin | Q1 2021 | Office | Market Statistics