New research from CommercialCafe projects that Austin’s office market will see the largest expansion this year.
According to the research, Austin is reaping the rewards of people migrating to the region throughout the last two years, mainly due to its lower cost of living and tax-friendly nature.
As a result, there is an estimated 10 million square feet of new space under construction in the city. This makes the city have the third-largest pipeline of new office space, following behind Boston and New York City.
In addition to New York City, Austin was also the only city to have multiple properties in CommercialEdge’s top 20 list. This includes the almost 1 million square foot first phase of Apple’s campus on West Parmer Lane.
Just behind the Texas hub is Nashville, which has 4.6 million square feet of office space under construction, representing 8% of existing stock. The research notes that Nashville is expected to see an even larger expansion in the future that is projected to represent 15.7% of existing stock.
“From supertall skyscrapers to sprawling campuses, the most prominent office developments estimated to wrap up this year demonstrate a decided interest in sustainability and green building practices,” the report states. “In fact, half of the 20 largest office projects are redevelopments that at least partially preserved pre-existing structures, while simultaneously employing some of the most modern green building materials and techniques, as well as integrating state-of-the-art smart building technologies.”
