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Lease Term

The industry average for lease terms is usually around 3-5 years

Austin Office Space for Rent

Office Space for Rent In Austin, TX

Well-known as the “Live Music Capital of the World,” Austin, TX, has also become one of the premier destinations for startups. Since the 1990s, a massive influx of investment and talent into the region has led to a tech boom that has garnered the Texas capital a new nickname: “Silicon Hills.”

Many tech Fortune 500 companies have chosen to lease Austin office space, including 3M, Dell, IBM, Intel, Oracle, and Texas Instruments. Even tech giants Google, Apple, and Amazon have set up shop in the city. The city is also attracting pharmaceutical and biotech firms to the area.

The city is young, with an average age of around 31, and much of that youth results from the higher education institutions located here. The University of Texas, Texas Health and Science University, and The Art Institute of Austin all call Austin home. Thousands of graduates from the computer science and engineering programs remain in Austin, contributing to the technology and defense industry sectors.

Austin is eccentric and diverse, and that spirit of “Keep Austin Weird” has become a draw for small independent businesses and progressive tech companies alike.

Austin Office Space—Lease Data & Trends

Despite the effects of the pandemic on business and the economy, leasing activity in Austin has continued to grow. Corporate relocations and business expansions have spurred growth, with vacancies trending downward.

Large lease transactions occurred recently, including Meta, Facebook’s parent company, which leased nearly 600,000 square feet of Austin commercial office space in one of the most significant developments downtown. Other key lease transactions include new office space leases from Amazon and Cloudflare.

Overall, the Austin metro area is home to more than 62 million square feet of office space inventory, with Class A space accounting for more than 40 million square feet of that space. New construction consists exclusively of Class A assets.

How much does office space cost in Austin, Texas?

On average, the cost for commercial office space for lease in Austin, Texas is around $51 per square foot per year as of Q1 2022. Prices may vary depending on the location of the property, its proximity to transportation, amenities, food, and entertainment, as well as the building’s overall rating.

Lease prices vary significantly by submarket, with a significant divide between Downtown and Suburban office options. In exchange for all the comfort and amenities of being downtown, office space in the Austin Central Business District tends to lease for 50% more than those in the suburbs. Outside of Downtown Austin, commercial tenants can expect to pay an average of $50 per square foot for Class A office space and $36 per square foot for Class B. The eastern suburbs generally have the lowest asking rents.

Austin submarket Overall average asking rent (sf/yr)* Class A average asking rent (sf/yr)* Class B average asking rent*
Downtown Austin (CBD) $66 $67 $53
Central Austin $42 $56 $34
East Austin $56 $59 $46
North Austin $40 $41 $33
Northeast Austin $36 $39 $31
Northwest Austin $47 $51 $35
Round Rock $34 $37 $33
South Austin $57 $64 $37
Southeast Austin $34 $36 $32
Southwest Austin $48 $51 $39
Austin Totals $51 $55 $38

*Source: JLL

What Our Brokers Say About Commercial Office Space in Austin

In addition to Austin’s friendly environment for tech businesses, the city also provides convenient access for companies and industries. Its position makes Austin very accessible for overland and air transportation of goods, and access to shipping ports along the Gulf of Mexico lies well within reach via the highway.

Austin has a diverse range of submarkets with nearby residential diversity, providing ample space for talent to live and work well within the city. The state capital, local and federal buildings are all centrally located in the Downtown area, as are many other government and administrative offices.

The university systems within the city provide not only a diversity of newly educated talent but plenty of potential patrons for new businesses moving into any of the large or small office spaces for rent in Austin, TX.

Types of Office Space in Austin, TX

Private office space for rent in Austin

As job growth brings more companies to Austin to set up satellite offices, some choose to permanently relocate to the Texas capital instead. The Downtown area remains one of the most popular locations, whether you need an executive office suite in Austin or an entire floor of space to house your company.

Other popular destinations for incoming companies and industries include the Northwest/ Far Northwest and the Southwest submarkets.

Flexible office space for rent in Austin

There are many types of flexible office space available in Austin for entrepreneurs, remote workers, and even enterprises with the need for flexible and/or temporary space. Temporary meeting room space can be found in and around the city, including at hotels & conference centers and through real estate companies specializing in office space in Austin. Executive office space is available in many of the finest buildings throughout Downtown Austin and the surrounding submarkets.

In terms of coworking, the coworking scene in Austin is as diverse as the people who live and work here. Currently, there are 50+ shared space and coworking options in Austin, with availabilities ranging from hot desks to private offices.

Top Commercial Buildings For Rent in Austin

515 Congress Avenue (Bank of America Center): Located in Downtown Austin, this 26-floor office building features retail space, a bank, and a deli on the ground floor.

900 Congress Avenue: Ideally situated in the downtown area, this property offers many different sizes of commercial office space for lease, including executive office suites in the downtown area.

6011 West Courtyard Drive: Located in Austin’s Far Northwest submarket, this Austin commercial office for lease is well-positioned near the downtown area and the University of Texas campus.

Get to Know Austin, TX

Austin is a very young city, with an average age of 30-35 among its 850,000 residents. One reason for this is the presence of the University of Texas, which calls the city home, as well as the rush of startups and small businesses in the area.

Austin is a mecca for entertainment and culture, with ample parks and waterfront views as additional perks. The population is diverse, as is the dining, from Asian bistros to traditional Tex-Mex favorites, and of course, BBQ joints are everywhere.

Why Rent Office Space in Austin, TX?

Austin, TX consistently ranks highly as an address for employers and clients. Austin has a positive reputation for business growth, and an address there indicates your company is taking itself seriously. It’s also a great location to entertain clients and create a happy, friendly environment for employees.

Having an Austin office space, especially in the Downtown area, provides convenient access to a variety of entertainment and dining venues and transportation.

Best Austin Neighborhoods to Rent Office Space

Downtown Austin

Located on the north bank of the Colorado River, Downtown Austin (which is the city’s Central Business District) is bordered by Lamar Boulevard, Martin Luther King, Jr. Boulevard, Interstate 35, and Lady Bird Lake. The University of Texas at Austin campus is in the northern part of the district. Downtown is the main center of business, government, and technology in Austin. Fortune 500 companies in the area include Google, Facebook, Indeed, and Deloitte, while well-known startups include Distractify, Bigcommerce, StitchFix, and HomeAway. The Red Line runs to the Downtown CapMetro Station. The CBD tends to have the highest rental rents in town.

Central Austin

The Central Austin submarket includes the Hancock, North University, Heritage, and West Campus neighborhoods as well as part of The Drag. Only minutes away from Downtown, Central Austin is home to the Seton Medical Center, St.David’s Medical Center, and the headquarters of Texas Perinatal Group, making this submarket ideal for companies in the medical and biotech industries. The University of Texas is also located in Central Austin. The Interregional Highway is the main thoroughfare for drivers in Central Austin, and the district is just a short drive from the MoPac Expressway. The MetroRapid rapid transit bus service runs on Guadalupe Street in The Drag.

North Central

Just north of Downtown, North Central Austin contains the smaller neighborhoods of Allandale, Brentwood, Crestview, Highland, North Shoal Creek, and Wooten. The area provides excellent office space options for the legal, real estate, insurance, and business industries at some of the lowest rents in Austin. North Central also attracts a variety of companies in the technology sector, including medical animation and digital marketing company Swift Kick Media, mobile app developer Phunware, virtual reality game developer Foundry, and artificial intelligence company MythicAI. The area has plenty of public transit options and local bus routes, and drivers can access North Central via the Interregional Highway, MoPac, or US-183.

East Austin

Shaped like a triangle, East Austin is bordered by the Interregional Highway on the west, Airport Boulevard on the east, and the Colorado River to the south. Underneath the hipster surface of rapidly multiplying restaurants and boutiques exists a tight-knit community with many local Austin offices and headquarters. East Austin’s artsy, laid-back character continues to attract new residents, making it one of the fastest-growing neighborhoods in Austin. Support Ninja, Cultivate PR, and Rocksauce all rent office space in East Austin, along with many real estate developers, channel data management groups, and policy developers.

Northwest Austin

The Northwest Austin submarket tends to have lower rental rates for private office space in Austin due to its distance from downtown. The Northwest is becoming a hub for tech companies, including Google and Oracle, so it is poised to become very competitive.

Northeast Austin

Office space in Northeast Austin rents has relatively cheap rents compared to other submarkets, which makes the area very appealing for young startups that want proximity to Downtown while paying meaningfully less per square foot. Dell Children’s Medical Center of Central Texas is located in Northeast Austin, as well as the Thinkery children’s museum and many elementary schools, creating an ideal neighborhood for companies with a focus on childhood education or medicine. Taking the bus is one of the easiest ways to get around Northeast Austin, and drivers have access to major roadways including I-35, Highway 183, and Highway 130.

South Central

South Central lies below downtown, across Lady Bird Lake. South Congress Avenue (“SoCo”), South First Street (“SoFi”), and South Lamar Boulevard (“SoLa”) are the most popular corridors in the area and have the highest concentrations of mixed-use developments. Industries with corporate offices in South Central include hospitality, beverage production, technology and information, and more. Ten buses serve the area, as well as the MetroRapid bus along both South Lamar Boulevard and South Congress Avenue.

Southeast Austin

Southeast Austin is home to both Texas Health and Human Services and Texas Workforce Solutions. The district is composed of smaller neighborhoods like Colorado Crossing, McKinney, and Franklin Park. Vital Farms and Pirch have headquarters in the area, which is also favored by the production, supply, and distribution industries. The Austin-Bergstrom International Airport lies just across from Southeast Austin on the other side of South Highway 183.

Southwest Austin

One of the more expensive submarkets, Southwest Austin office space is the ideal location for companies in the energy, medical, and technology industries who don’t want to pay Downtown prices but still want to invest meaningfully in their office space. Its proximity to some of the city’s most beautiful scenery allows it to command higher rental rates than the Northwest. Its accessibility to affluent neighborhoods also increases its appeal.

The area is home to Intel’s corporate campus and Whole Foods’ global office. The district is contained above the intersection of South MoPac Expressway and South Capital of Texas Highway.

Round Rock

Companies who don’t mind a little extra distance from Downtown Austin will find themselves in excellent company among Round Rock tenants such as Dell, Emerson Automation Solutions, and Trellis Company. Major industries in the area include clean energy, manufacturing, life sciences, and software development. The district is located above the intersection of US-45 and I-35. Four bus routes provide transportation within Round Rock and connect to multiple CapMetro routes heading into Austin.

Getting to, From, and Around Austin

Heavy traffic can be a nuisance, especially at rush hour, but the majority of Austinites still prefer to drive to work over any other form of transportation. I-35 and the MoPac Expressway are the two main traffic arteries heading running north to south, with US-183 crossing through the north side of Austin and Ben White Boulevard running east to west through the southern side.

Austin’s Capital Metro system is often referred to as CapMetro. CapMetro operates over 50 bus routes in the area, as well as MetroExpress commuter buses, MetroRapid rapid bus services, and the MetroRail with nine stations between Leander and Downtown Austin. Park & Ride lots help connect the outer suburbs to Austin’s Central Business District, as well as Amtrak and intercity buses.

The individual neighborhoods are very walkable, especially Downtown Austin. Austinites who live within walking distance to work can take scenic routes through the numerous parks that are scattered throughout the city. Austin is also very bike-friendly, and Austin “B-cycle” kiosks are located throughout Downtown.

Austin-Bergstrom International Airport is located about 10 miles east of Downtown and has about 300 flights per day, both incoming and outgoing. Southwest Airlines, American Airlines, and United Airlines have the most passenger traffic.


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