Wrapping up the fourth quarter of 2020, Austin felt the effects of the prolonged pandemic. Employment fell nearly 1.5% year-over-year, losing approximately 16,000 jobs. A continually-increasing amount of sublet space added to the vast number of vacant space throughout the market. On a positive note, 2020 saw a stream of large, innovative companies heading to Austin to take advantage of Texas’ tax-friendly and pro-business stance – Tesla, Google and Oracle to name a few. This growth will add new jobs in 2021 and drive the economic recovery to Central Texas.
Turning the corner on the pandemic and looking forward to 2021, Austin is set to be the hottest market in the country. A deep tenant-driven market took root during the pandemic that will not last as more headquarters relocate, hiring resumes and business gets back to normal. Rates have stayed flat, but the opportunity to negotiate concessions has come to the forefront. The advantage of being able to drive down your net effective costs with landlords will dissipate as we get further into 2021. This window to reenter the market at 2020 prices will not last long. Put yourself in a position of strength. Work with an advisor who challenges the norm to ensure your business remains future-fit.
Check out Vestian’s Q4 2020 Austin Market Report
Chad brings deep transactional experience in Austin-based Industrial and Office Tenant Representation. His passion is working with cool, creative companies and finding innovative solutions to their space needs. Chad works through and supports his clients’ core business goals and translates them into clear and successful CRE objectives. Chad has assisted his clients in Lease and Cost Reduction, Lease Analysis, Relocation Planning, Comprehensive Portfolio Analysis, Restructures and Renewals. Chad has a proven track record of making sure that every square foot is employed in delivering value to his clients.