AUSTIN, Texas — High rises in Downtown Austin are easy to spot, but the amount of vacant office spaces is not.
According to the Downtown Austin Alliance, 22% of the office space downtown is currently vacant.
Downtown Austin Alliance Chief Impact Officer Jenell Moffett said there is simply more supply than demand. A lot of that has to do with major company’s work models.
“Those companies coming in that are leasing space are probably leasing less space than they had in the past,” Moffett said. “That’s just due to the hybrid conditions. People are working from home and that trend has continued.”
Moffett said that lack of demand means property owners are subleasing fewer floors. Instead of taking nine or 10 floors of a downtown office tower, companies may only take five or six.
Those adjustments also trickle down and impact small business sales.
“[It] impacts small retail establishments that … are on first floor, establishments spread through downtown,” Moffett said.
Moffett hopes property owners look at other options for the space and find unique uses for it. The Downtown Austin Space Activation (DASA) program calls on Austinites to turn downtown into a place they want to be.
“I think those are conversations we are having and case studies we are evaluating,” Moffett said. “We are working with property owners through our DASA program to encourage them to partner with us. Partner with local government officials, with nonprofits, to find unique uses for those spaces.”
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