What is the average Class A rent in Austin?

Around 60 USD/sqft/yr ($60 USD) across the broader Class A index. Trophy submarkets like Downtown command 20–40% above that.

How many months of rent-free are normal in Austin?

18 months on a 10-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.

Are rents rising or falling in Austin?

The Austin Class A market is currently softening. Vacancy is 27.8%, which sets the negotiating context.

Headline Class A rent in Austin is around 60 USD/sqft/yr ($60 USD), with 18 months of typical rent-free on a 10-year term.

Headline Class A rent: 60 USD/sqft/yr ($60 USD).
Trophy submarket rents (Downtown) push to roughly $72/sqft/yr.
Typical concessions on a 10-year deal: 18 months free rent.
Vacancy stands at 27.8% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Austin Class A office rents and incentives

Headline Class A rent in Austin is around 60 USD/sqft/yr ($60 USD), with 18 months of typical rent-free on a 10-year term.

TL;DR

Headline Class A rent: 60 USD/sqft/yr ($60 USD).
Trophy submarket rents (Downtown) push to roughly $72/sqft/yr.
Typical concessions on a 10-year deal: 18 months free rent.
Vacancy stands at 27.8% — market trend is softening.
Use effective rent (face minus PV of concessions), not headline, to compare deals.

Headline rent vs. effective rent

Asking rents in Austin are quoted in USD per sqft per year. Across the broad Class A index the figure is 60, but the trophy tier in Downtown reaches roughly $72/sqft/yr. Always discount headline rent by the present value of free rent and fit-out-capex">tenant improvement allowance to land on effective rent — the only number that compares cleanly across deals.

Rent-free and TI

Standard Austin concessions on a 10-year Class A lease run to 18 months of base-rent abatement. Trophy lease-ups can push rent-free 25–40% above that benchmark. Local cost-of-occupancy is also shaped by tax — 21% federal corporate income tax. No Texas state income tax. Texas franchise tax of 0.75%. Property tax burden is elevated — model carefully into occupancy cost.

Where rents land by submarket

Downtown sits at the top end (~$72/sqft/yr). Domain clears around $56/sqft/yr as the prime tier. Mueller represents the value end at ~$42/sqft/yr. The full submarket map is on the Austin city page.

Key facts

city	Austin
country	United States
region	Americas
classARentLocal	60 USD/sqft/yr
classARentUsd	$60/sqft/yr
vacancy	27.8%
typicalLeaseYears	10
typicalRentFreeMonths	18
submarkets	5
primeYieldPct	6.8%
trophyRent	$72/sqft/yr
primeRent	$56/sqft/yr

Frequently asked questions

What is the average Class A rent in Austin?: Around 60 USD/sqft/yr ($60 USD) across the broader Class A index. Trophy submarkets like Downtown command 20–40% above that.
How many months of rent-free are normal in Austin?: 18 months on a 10-year deal is the standard benchmark. Lease-up product or tenants with strong covenant strength can push higher.
Are rents rising or falling in Austin?: The Austin Class A market is currently softening. Vacancy is 27.8%, which sets the negotiating context.

Editorial provenance

Reviewed by Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.

Primary sources for this page

CBRE Marketview reports — CBRE
JLL Office Insight — JLL
Cushman & Wakefield Marketbeat — Cushman & Wakefield
Savills World Research — Savills
Colliers Global Office Outlook — Colliers

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