Buoyed by expected job growth of 5.6 percent, Austin reigns as the country’s No. 1 office market for 2022, according to a new report.
The report, published by commercial real estate services provider Marcus & Millichap, cites Austin’s position as a magnet for tech employers as one of the reasons for the bullish outlook regarding this year’s local office market.
Marcus & Millichap anticipates net absorption this year of more than 4 million square feet of office space in the Austin area. That would bring the region’s two-year net absorption total to more than 9 million square feet of office space, Marcus & Millichap says.
Net absorption refers to the amount of square feet that became occupied during a certain period, subtracted by the amount of square feet vacated during that period.
Of course, tech companies are spurring much of this activity. Office tenants in the tech sector are drawn to Austin for several reasons, such as a relatively low cost of doing business, an abundance of skilled workers, and opportunities to collaborate with related businesses, according to the report.
“This trend is not novel for the [Austin] market. However, location preferences are shifting,” the report says. Click to read more at www.austin.culturemap.com.