Office vacancy rises downtown, overall employment up report says

Yahoo

28-05-2025

AUSTIN (KXAN) — Downtown Austin has entered a 'period of correction,' according to the Downtown Austin Alliance's 2025 economic impact report, with office vacancy around 22%.
The report addresses things like:
Past and ongoing projects
Mobility
Residential life
Development
Workforce
Public Safety
Culture
'Downtown is the cultural and economic heartbeat of our city,' Davon Barbour, president and CEO of the Downtown Austin Alliance said. 'This is a place where creativity thrives, businesses grow, and everyone is welcome. As we navigate major infrastructure projects, new development and population growth, our focus is on keeping downtown accessible, vibrant and open to all.'
The boundaries of downtown, for the purpose of the report, is officially defined by the map below.
The three primary industries utilizing office space downtown are financial services, professional services and law firms, according to the report.
The DAA recognizes the changing needs for office space that have arisen since the pandemic, with more companies opting for remote or hybrid work models. This was also something heavily discussed in last year's State of Downtown report.
Office vacancy rose from 17.3% in 2023 to 22% in 2024, and employees have returned to the office at 67% of 2019 levels. As the DAA recognizes this number highlights a steady shift in workplace trends, the organization is working to modify its office-space offerings.
'Although companies are seeking less space, they are prioritizing modern design and amenities to attract employees and clients; downtown officers a wealth of cutting-edge options,' the report reads.
Downtown employment has increased by 14% since 2020. The below chart breaks that down.
The building of the new convention center, which officially started last month, as well as other major downtown projects, 'will make downtown more vibrant and inclusive in the long term, [but] the interim construction and closures will affect how people move through and enjoy downtown. This will require city leaders to proactively address accessibility and minimize any potential negative impacts.'
The current plan is to have the new facility done in late 2028 ahead of the 2029 spring festival season, which includes SXSW.
'In anticipation of the Convention Center's closure, we are actively workingwith partners to identify and inform the community on how downtown can continue to support festivals through small, local venues,' the DAA stated in the report.
The DAA also said event organizers who usually use the convention center have reached out to nearby hotels about hosting events in the interim.
The DAA has held several meetings over the last year and a half with the Austin Police Department (APD), security providers, government officials, residents and business owners and employees to address downtown safety concerns.
This includes dedicated safety officers who patrol the area on bikes.
While they don't have the authority to make arrests, they can assist in getting people off of private property if issues arise, and bridge the gap between the community and the police department.
The team includes 25 staff members. Bike patrols run from 6 a.m. to 10 p.m. daily. Additionally, one person works overnight at Republic Square Park, and another staffer patrols from 5 p.m. to 3 a.m. Wednesday-Sunday in a marked vehicle.
The report noted the two following trends when it comes to downtown crime:
Crimes against people, property (e.g. attacks, burglaries) have decreased since 2019
Class C misdemeanor ordinance violations (e.g. camping in public, lying in rights of way, aggressive solicitation) have increased
Crimes against society (drug crimes, weapons violations) have increased
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