Demand remains resilient as CBD leads leasing activity at the start of 2025

Leasing activity continues to trail near the five-year average with 1.1 million square feet (msf) of leasing activity occurring in Q1 2025. The CBD and the North submarket were among the top performing submarkets, seeing the largest amount of leasing activity in Q1 2025. The two submarkets attributed to almost half of the leasing done, with four of the five largest deals occurring within these submarkets. BigCommerce signed a lease for approximately 65,000 square feet (sf), while NinjaOne renewed and expanded to approximately 60,000 sf. As office demand holds firm, the near-term outlook remains optimistic, with return-to-office strategies still a topic of conversation as companies reassess their workplace policies. According to Kastle Systems the Austin metro was among the top performing metros in building occupancy rates, with building occupancy regularly exceeding 61.0% in Q1 2025.

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