--- title: "Austin Class A Office Market" description: "Sunbelt tech capital with significant 2022-2025 trophy delivery." canonical: https://classa.info/cities/austin pageType: city lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > Austin Class A office rents around $60/sqft/yr, with 27.8% vacancy and 18 months of typical rent-free on a 10-year term. ## TL;DR - Downtown trophy deliveries 2022-2025 added significant new supply. - Headline vacancy elevated; deal velocity remains strong on flexible terms. - Concessions are among the most generous in the US — 18+ months free on a 10-year deal. - No Texas state income tax continues to drive HQ moves. # Austin Class A Office Market *Sunbelt tech capital with significant 2022-2025 trophy delivery.* ## TL;DR - Downtown trophy deliveries 2022-2025 added significant new supply. - Headline vacancy elevated; deal velocity remains strong on flexible terms. - Concessions are among the most generous in the US — 18+ months free on a 10-year deal. - No Texas state income tax continues to drive HQ moves. ## Overview Austin's [Class A](/glossary/class-a) market re-rated dramatically through 2018-2022 on tech in-migration and is now absorbing a wave of speculative trophy delivery. Downtown trophy supply is meaningful; concessions have widened materially. Tesla, Oracle, Indeed, and a deep VC-backed startup ecosystem anchor demand. ## Market snapshot | Class A rent | 60 USD/sqft/yr (60 USD)| | Vacancy | 27.8%| | Typical lease length | 10 years| | Typical rent-free | 18 months| Composite of Q1 2026 broker market reports for Austin. ## Lease norms Modified-gross structures with opex pass-throughs. 7-10 year terms common; trophy can push to 12-15. Free rent of 14-22 months and TI of $100-$150/sqft typical. ## Transit & access Capital Metro bus + MetroRail (single Red Line). Project Connect light rail in early planning. Heavy car dependency outside the central core; downtown trophy tenants increasingly emphasize walkable amenity. ## Tax 21% federal corporate income tax. No Texas state income tax. Texas franchise tax of 0.75%. Property tax burden is elevated — model carefully into occupancy cost. ## Talent Deep tech engineering talent base anchored by UT Austin and a decade of in-migration. Strong concentrations in semiconductors (Tesla, Samsung, NXP), software, and gaming. ## Notable Class A buildings - **Indeed Tower** [](https://www.google.com/maps/search/?api=1&query=Indeed%20Tower%2C%20200%20West%206th%20Street%2C%20Austin%2C%20TX%2078701%2C%20Downtown%2C%20Austin%2C%20United%20States&query_place_id=ChIJ1X877JO1RIYRsrTXBnuPDYA) · Downtown — 36-story trophy delivery anchored by Indeed. - **The Republic** [](https://www.google.com/maps/search/?api=1&query=The%20Republic%2C%20401%20W%204th%20Street%2C%20Austin%2C%20TX%2078701%2C%20Downtown%2C%20Austin%2C%20United%20States&query_place_id=ChIJUW0yBLu1RIYRT4yZx5ytIwo) · Downtown — Trophy delivery anchored by Sidley Austin. - **6 X Guadalupe** [](https://www.google.com/maps/search/?api=1&query=6%20X%20Guadalupe%2C%20400%20W%206th%20Street%2C%20Austin%2C%20TX%2078701%2C%20Downtown%2C%20Austin%2C%20United%20States&query_place_id=ChIJI6cYEty1RIYRa-16l39iLHI) · Downtown — Mixed-use Class AA tower with Google Austin satellite. - **Block 185 (Google)** [](https://www.google.com/maps/search/?api=1&query=Block%20185%20(Google)%2C%20601%20W%202nd%20Street%2C%20Austin%2C%20TX%2078701%2C%20Downtown%2C%20Austin%2C%20United%20States&query_place_id=ChIJAb2vO8G1RIYReAPDMl4LnKI) · Downtown — Google-anchored trophy. - **Domain Tower 2** [](https://www.google.com/maps/search/?api=1&query=Domain%20Tower%202%2C%2011801%20Domain%20Boulevard%2C%20Austin%2C%20TX%2078758%2C%20Domain%2C%20Austin%2C%20United%20States&query_place_id=ChIJrWhaHHXMRIYReI1_LETPe5E) · Domain — Centerpiece of the Domain mixed-use suburban trophy node. ## Class A submarkets in Austin - [**Downtown**](/cities/austin/downtown) — Austin's trophy core. (trophy) - [**Domain**](/cities/austin/domain) — Premier suburban mixed-use trophy. (prime) - [**East Austin**](/cities/austin/east-austin) — Creative and tech repositioning frontier. (prime) - [**South Congress (SoCo)**](/cities/austin/south-congress-soco) — Boutique creative HQ market. (prime) - [**Mueller**](/cities/austin/mueller) — Master-planned Class A campus. (established) ## Austin deep-dives - [Rents and incentives](/cities/austin/topics/rents-and-incentives) — What does Class A rent cost and what concessions are typical? - [Sublease market](/cities/austin/topics/sublease-market) — How deep is [sublease](/topics/sublease-strategy)">sublease availability and how does it price? - [ESG and LEED stock](/cities/austin/topics/esg-and-leed) — How much certified stock exists and what premium does it command? - [Transit and commute](/cities/austin/topics/transit-and-commute) — Which submarkets have the strongest transit access? - [Talent and salaries](/cities/austin/topics/talent-and-salaries) — What does the white-collar talent pool look like and how is it priced? - [Fit-out costs](/cities/austin/topics/fit-out-costs) — What does a Class A [fit-out](/topics/fit-out-capex)">fit-out cost per square foot? - [Flex vs lease](/cities/austin/topics/flex-vs-lease) — When does premium [coworking](/topics/lease-vs-flex) beat a traditional lease? - [Taxes and incentives](/cities/austin/topics/taxes-and-incentives) — What corporate, occupancy, and property taxes apply? - [Neighborhoods overview](/cities/austin/topics/neighborhoods-overview) — Which Class A submarkets exist and how do they compare? - [Notable buildings](/cities/austin/topics/notable-buildings) — Which trophy assets define the market? - [Class A vs Class B](/cities/austin/topics/class-a-vs-class-b) — What is the spread between Class A and [Class B](/glossary/class-b) and why? - [Leasing conventions](/cities/austin/topics/leasing-conventions) — What lease structures, terms, and concessions are normal? - [Expansion checklist](/cities/austin/topics/expansion-checklist) — What is the operational checklist for opening here? - [Relocation guide](/cities/austin/topics/relocation-guide) — How do you move into this market from another city? - [Frequently asked questions](/cities/austin/topics/faq) — Quick answers to the questions occupiers ask most. - [Operating expenses](/cities/austin/topics/operating-expenses) — What service charges, OpEx, and pass-throughs apply on top of rent? - [Growth and availability](/cities/austin/topics/growth-and-availability) — How tight is current availability and what does the pipeline look like? - [Sustainability pathways](/cities/austin/topics/sustainability-pathways) — How do tenants land net-zero or science-based-target leases here? - [Hybrid work policy](/cities/austin/topics/hybrid-work-policy) — How are hybrid policies shaping office demand here? - [Security and redundancy](/cities/austin/topics/security-and-redundancy) — What security, power, and connectivity redundancy are standard? - [Lab and R&D space](/cities/austin/topics/lab-and-r-and-d) — What does R&D-grade or wet-lab space look like in this market? - [Brand experience](/cities/austin/topics/brand-experience) — How do trophy buildings function as brand experiences and showpieces? - [Fund strategy and flag](/cities/austin/topics/fund-strategy-and-flag) — Which submarkets carry the strongest investor flag for funds? - [Exit and renewal](/cities/austin/topics/exit-and-renewal) — How do you handle a Class A [renewal](/topics/lease-renewal-strategy) or exit cleanly here? - [Market cycle position](/cities/austin/topics/market-cycle-position) — Where is this Class A market in its cycle right now? ## Austin — frequently compared - [**Austin vs Boston**](/compare/austin-vs-boston) — Americas HQ shortlist: Austin vs Boston. - [**Austin vs Chicago**](/compare/austin-vs-chicago) — Americas HQ shortlist: Austin vs Chicago. - [**Austin vs Los Angeles**](/compare/austin-vs-los-angeles) — Americas HQ shortlist: Austin vs Los Angeles. - [**Austin vs Miami**](/compare/austin-vs-miami) — Americas HQ shortlist: Austin vs Miami. - [**Austin vs New York**](/compare/austin-vs-new-york) — Americas HQ shortlist: Austin vs New York. - [**Austin vs San Francisco**](/compare/austin-vs-san-francisco) — Americas HQ shortlist: Austin vs San Francisco. ## Frequently asked questions ****How much new trophy supply was delivered 2022-2025?**** : Downtown alone received 4M+ sqft of new Class A trophy delivery, much of it speculative. Absorption has lagged delivery, driving the elevated vacancy reading. ****Is the rent re-rating from the 2018-2022 era sustainable?**** : Trophy rents have softened modestly from 2022 peaks but remain materially above the pre-2018 baseline. Stabilization at $58-$65/sqft trophy is the working assumption. ****What is the Domain submarket?**** : Domain is Austin's premier suburban mixed-use trophy market — Apple, Indeed, Facebook satellites, plus deep retail and residential. ## Editorial provenance Reviewed by [**Miriam Hollander**](/about/authors/miriam-hollander) — Lead market analyst. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) ## Related topics - [**Class A Lease Negotiation**](/topics/class-a-lease-negotiation) — How to negotiate a Class A office lease — the playbook from LOI to signed deal. - [**Hybrid Workplace Strategy**](/topics/hybrid-workplace-strategy) — How to size, structure, and lease a Class A office for a hybrid workforce. - [**ESG / LEED for Tenants**](/topics/esg-leed-tenants) — How tenants evaluate, negotiate, and report on ESG performance in a Class A office lease. - [**Cross-border Expansion**](/topics/cross-border-expansion) — How to run a coordinated Class A office search across multiple geographies. - [**Fit-out Capex**](/topics/fit-out-capex) — How to budget, sequence, and govern Class A office fit-out capex. - [**Lease vs Flex**](/topics/lease-vs-flex) — When premium flex (coworking, managed office) beats a conventional Class A lease — and vice versa. --- Citation: Source: Class A Atlas (https://classa.info/cities/austin), updated 2026-04-15T00:00:00.000Z.