The downtown market is normalizing after years of growth, and contending with both challenges and opportunities tied to a series of major infrastructure projects now impacting the area.
Downtown Austin is seeing fewer new developments and record office vacancy rates following a wave of major projects around the city center. At the same time, public and private investments are continuing and the area is home to a rebounding retail scene and established resident base.
Those findings and more were detailed in the latest annual report from the Downtown Austin Alliance, the nonprofit advocacy group representing downtown property owners. The analysis of downtown market trends and outlook for the area's future were presented mid-May.
About 2.94 million square feet of space is under construction downtown, and the DAA currently projects 8.22 million more square feet of planned new development. Office vacancies remain high, hotel bookings declined after the Austin Convention Center's closure for redevelopment, and residential growth steadied out in 2025.