TAKEAWAYS
- As the COVID-19 delta variant accelerated, some major companies such as Amazon, Apple, and Wells Fargo, pushed initial return-to-office plans from post-Labor Day to at least the first week of October, and some to next year.
- Still, the Austin office market showed signs of stabilization in Q3. Leasing volume totaled 1.5 million square feet (msf), on par with Q2 and well-above pandemic lows. With stronger demand overall availability declined by 100 basis points (bps) over the quarter.
- According to job growth & unemployment reports from the Austin Chamber of Commerce, Austin has recovered all COVID-19 pandemic-related job losses by adding jobs in 15 of the last 16 months.
- Notably, Cloudflare added a new location in Austin this quarter leasing 124,393 square feet (sf) at 1600 East 4th Street in the East submarket. Also, TikTok committed to a short-term lease of 65,000 sf at Chase Tower in Central Business District (CBD) submarket.
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