According to the document: - Office activity has picked up significantly in the past quarter, with demand focused on newer Class A space in the CBD, South Central, and East areas of Austin. This has driven up rental rates in these core areas. - Sublease space has received significant attention, with many subleases being occupied or nearing lease documentation. This allows tenants to avoid long construction timelines and realize substantial cost savings versus building out their own space. - Overall vacancy remained at 19.3% as net absorption was negative, but delivery of new supply also slowed, suggesting continued strong demand. Rental rates across Austin increased slightly but remained flat in suburban areas.

1. 21Q4 22Q1
New Supply 224,343 455,057
Net Absorption 494,482 (9,873)
Overall Vacancy 19.3% 19.3%
Under
Construction
4,395,000 4,179,834
CBD Class A Asking
Lease Rates (FSG)
$66.34 $66.96
Overall Asking
Lease Rates (FSG)
$47.19 $47.31
Sublease
300 Colorado St
CBD | 149,346 SF
TikTok
Sale
Domain Tower
North/Domain | 309,88 SF
Buyer | The Carlyle Group
Sale
Mueller Business District - Alpha
East | 265,000 SF
Buyer | Teacher Retirement
System Investments
Lease
Bouldin Creek
South | 114,413 SF
Atmosphere
Lease
Parmer Business Park
Northeast |58,716 SF
BSL Consulting LLC
YOY
FORECAST
YOY
YOY
FORECAST
YOY
FORECAST
FORECAST
Office
Austin,
TX
22Q1
Boots On the Ground
Activity has picked up tremendously over the past quarter, with a continued emphasis on newer product in the city core. There
has been a feeding frenzy for Class A product in the CBD, South Central and East areas of Austin, which has resulted in
increasing rental rates in those areas. While much of this is due to out-of-town tech users entering or expanding in the market
(Tiktok, Snapchat, Miro, etc.) Austin tech companies are also joining the mix. Subleases have garnered a ton of attention, and
many have been subleased or are currently at documentation. We believe the primary reasons for this are (i) The ability to
avoid a 9-12 month design and construction process, and (ii) Tremendous cost savings associated with...(continued on next page)
Unemployment Rate
Market Indicators
Historic Comparison
3.3%
Austin
Unemployment
Rate
2.398%
US 10 Year
Treasury Note
3.9%
US
Unemployment
Rate
Vacancy Rate
19.3%
Net Absorption
-98K SF
Overall Class A Asking
Lease Rates (FSG)
$53.17/SF
Under
Construction
4.1M SF
Key Takeaways
• Entry of new Subleases are slowing, and we are starting to see
great demand and activity for core subleases (CBD, East, Central,
and South).
• Rates in the core continue to rise while suburban locations remain
stagnant.
• Construction remains expensive and timelines are again extending
due to design capacity, permit process, and supply constraints on
materials.
Recent Transactions
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18Q2
18Q3
18Q4
18Q4
19Q1
19Q2
19Q2
19Q3
19Q4
19Q4
20Q1
20Q2
20Q2
20Q3
20Q4
20Q4
21Q1
21Q2
21Q3
22Q1
Austin Texas US

2. Colliers | Austin | 22Q1 | Office Report
Office
Austin,
TX
22Q1
Sublease Environment
34%
6%
3%
5%
1%
3%
21%
1%
2%
0%
24%
0% CBD
Central
East
North/Domain
Northeast
Far Northwest
Northwest
Round Rock
South
Southeast
Southwest
West Central
21Q1 21Q4 22Q1
CBD 791,981 745,866 601,019
Central 44,409 10,987 97,713
East 89,234 87,000 47,395
North/Domain 105,071 57,068 79,114
Northeast 119,636 74,130 23,048
Far Northwest 56,124 42,232 48,560
Northwest 516,968 376,622 369,006
Round Rock 17,271 14,475 14,475
South 35,909 21,599 28,301
Southeast 8,000 42,273 8,000
Southwest 354,202 314,520 421,162
West Central 21,048 0 2,903
TOTAL 2,159,853 1,786,772 1,740,696
Boots on the Ground continued
The Market, at a Glance
Austin remains one of the top performing markets in the country in just about every product type. Our updated “office deals in
the market” list is extraordinarily robust. If half of those companies lease space, we’re in for a couple big-performing quarters.
Industrial remains on fire, with most users having to take down space before its built. Capital markets transactions in general are
improving but still not to a typical level. Forward selling (the concept of selling an approved project prior to breaking ground) is
still active on industrial product, however pricing has moved down slightly due to increased cost of capital. Demand for leased
product is still pushing very low cap rates, however.
Future Forecast
We’re tempted to copy and paste last quarter’s commentary, “It’s going to stay busy”. We believe demand is going to continue to
increase. That may not be reflected in the immediate forthcoming vacancy rates due to new product being classified as delivered,
however that’s to be expected. Average rates are likely to remain somewhat flat (core rates going up, but suburban markets
remaining flat or in some instances, slightly decreasing). Sublease vacancy is likely to immediately trend down due to current “at
sublease” deals, but then potentially go up as we are aware of multiple mid/large opportunities coming to the market in the
25K-80K RSF range. However, we’d consider the majority of these spaces as prime opportunities which will likely get subleased
reasonably quickly.
construction and furniture vs. traditional spaces. We believe this success will lead to more traditional landlords either white
boxing or spec’ing out tired spaces for marketability. This activity has also been the catalyst for multiple new downtown projects
breaking ground, ranging from 100K to over 700K RSF. Most of these buildings won’t deliver until 2024/2025 therefore conditions
should remain somewhat favorable for Landlords in the short term.
Many suburban markets remained depressed resulting in higher vacancy and lower effective rates, but activity is picking up.
At some point many companies will be forced to consider product alternative to the core, due to pricing, parking or availability,
which will likely be the catalyst for a resurgence of suburban markets.

3. Colliers | Austin | 22Q1 | Office Report
Office
Austin,
TX
22Q1
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
16.0%
17.0%
18.0%
19.0%
20.0%
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
CBD Citywide Total Vacancy
Notable Q1 2022 Completions
(1,000,000)
(500,000)
0
500,000
1,000,000
1,500,000
2,000,000
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Deliveries Net Absorption
RiverSouth
350,611 SF | South
Stream Realty Partners, LP
Domain Tower 2
332,200 SF | North/Domain
Stonelake Capital Partners
Return to Work
As traffic accurately indicates, companies are beginning to
reoccupy offices at a rapid pace. Austin occupancy levels
began spiking in March and we’ve seen multiple reports
stating that Austin leads the nation in employees returning
to the office. Professional services lead the pack, however,
tech is slowly beginning to join the trend. Approximately
half of the subleases on the market are based on those
companies determining that they will never fully reoccupy
and prefer a flex model moving forward. We are also
seeing many clients leasing space and finishing them out
for flex work, which often includes more meeting and
lounge space combined with less dense stationary seating.
Direct Lease Rates
Overall, rates continue to rise primarily bolstered by new
Class A product delivering to the market. This is typical as
new buildings range from asking rates of $36.00-
$43.00 NNN in suburban submarkets while closer to
$46.00-$50.00 NNN in the CBD and surrounding. The
asking price delta is partially based on demand, however
construction pricing has a definitive impact. Higher land
prices combined with more expensive construction (i.e.
below grade parking can run $40K per space to build)
forces higher rates. Class B buildings, along with most
suburban buildings (other than the Domain) have
remained somewhat flat in terms of asking rates.

4. Colliers | Austin | 22Q1 | Office Report
Office
Austin,
TX
22Q1
Upcoming Projects
Citywide Construction
25%
75%
East
CBD
Q2 2022 Expected Deliveries
Uptown ATX - Block A
Brandywine Realty Trust
374,739 SF | North/Domain
Q3 2023 Delivery
2% Leased
Centro - Northern
Riverside Resources
165,337 SF | East
Q2 2022 Delivery
0% Leased
Victory Plaza
Undisclosed
91,548 SF | Central
Q3 2022 Delivery
0% Leased
1515
Undisclosed
71,632 SF |East
Q4 2022 Delivery
0% Leased
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
Q2
2022
2022
2023
Leased Expected Deliveries

5. Copyright © 2022 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
Kaitlin Holm
Marketing & Research Coordinator
Austin
+1 512 539 3021
kaitlin.holm@colliers.com
David Bremer, SIOR
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 13,535,540 1,847,470 601,019 18.1% 122,074 $62.91
TOTAL 13,535,540 1,847,470 601,019 18.1% 122,074 $62.91
Market Total
CBD 13,535,540 1,847,470 601,019 18.1% 122,074 $62.91
Suburban 53,205,918 8,950,432 1,139,677 19.0% (131,947) $43.94
TOTAL 66,741,458 10,797,902 1,740,696 19.3% (9,873) $47.31
Suburban
Central 2,724,629 479,863 97,713 21.2% 6,975 $48.91
East 3,643,084 1,003,279 47,395 28.8% 241,376 $57.61
North/Domain 7,712,526 934,941 79,114 13.1% (79,005) $41.14
Northeast 3,009,446 564,885 23,048 19.5% (14,397) $36.74
Far Northwest 3,743,465 289,806 48,560 9.0% (116,000) $40.91
Northwest 13,395,344 2,915,852 369,006 24.5% 31,367 $39.19
Round Rock 1,555,699 52,729 14,475 4.3% (111,600) $35.92
South 2,788,502 671,926 28,301 25.1% 151,051 $51.87
Southeast 3,320,175 445,903 8,000 13.7% (83,163) $35.16
Southwest 10,461,446 1,530,206 421,162 18.7% (173,151) $44.95
West Central 851,602 61,042 2,903 7.5% 14,600 $50.17
TOTAL 53,205,918 8,950,432 1,139,677 19.0% (131,947) $43.94
Austin | Q1 2022 | Office | Market Statistics