Austin is leading all U.S. cities in office-using employment growth, even though its office vacancy rate remains well above the national average.

The Sun Belt filled the top five spots in office-use employment, which included Raleigh, North Carolina, Nashville, Dallas and Charlotte, according to a recent Avison Young report. Between 2019 and 2025, Austin’s office-using employment grew by roughly 34%. Raleigh saw the second-highest growth at approximately 23%. 

Avison Young attributed the trend to healthier demand and elevated leasing activity.

But despite job growth, Austin posted a 22.4% office vacancy rate in the first quarter, according to Colliers. This rate has remained flat year-over-year, with Q1 2025 reporting a 22.5% vacancy rate. The national average was 18.6% during the first quarter of 2026, CBRE reported.

However, there is hope on the horizon. With Austin leading the nation in office-use growth, the metro area’s vacancy rate is likely to gradually decline, Avison Young’s Regional Manager of Market Intelligence Ariel Guerrero told Bisnow. 

“With Austin’s office development pipeline now slowing significantly and the metro still leading the nation in office-using job growth, vacancy has likely peaked and should gradually trend downward over the next year,” he said.

Since 2020, nearly 14M SF of new office space has been delivered, causing a sharp oversupply, as noted by Cushman & Wakefield.

New office construction has slowed significantly as the market works through that oversupply. The pipeline had only 756K SF expected to be fully delivered by the end of the third quarter, according to a separate CBRE report. 

Additionally, Austin is reported to have positive net absorption in Q1, with 110 tenants seeking 4.4M SF of space, CBRE stated. The metro’s improving office demand mirrors the broader national trend, which CBRE reported as the eighth straight quarter of positive demand.

Guerrero said the expected decline in the vacancy rate likely won’t be uniform across all office building classes, at least not in the near term. Trophy and Class-A assets will see rates decline before what he described as “older vintage buildings.”

“In the meantime, it remains a tenant-favorable market, presenting a window for occupiers to secure long-term leases before conditions tighten and pricing power begins to shift back toward landlords,” he said.