A wave of bargain hunting is breathing unexpected life into Austin’s office market, as investors and companies rush to snag buildings many had written off in the wake of the pandemic. Owners who bought near the 2021 peak are selling at steep discounts, and buyers are betting that the combination of lower purchase prices and savings on replacement costs makes owning pencil out again. The upshot is a clear pickup in deal activity across the metro.
According to CoStar, office sales volume over the past year has roughly doubled compared with the previous 12 months, as investors and owner‑occupiers acquire properties “at an accelerating pace.” The analysis links that surge to sharp discounts from 2021 pricing and to “substantial savings to replacement costs,” and it names local market contacts, including Colliers’ Doug Rauls and Brick Row founder Connor Greissing. While the full report is behind a paywall, the headline takeaway of more buying at deeper discounts is echoed in other Austin market summaries.
Why Buyers See Value
The math is heavily influenced by vacancy and rent trends. In select pockets, leasing has stabilized, and lower entry pricing makes hold‑and‑upgrade plays viable instead of speculative. As outlined by Colliers, net absorption improved in mid‑2025, and asking rents have leveled off in certain submarkets, which gives underwriters something firmer to plug into their models. That cocktail of cheaper acquisitions and early signs of leasing recovery is nudging more owner‑occupiers and smaller funds into buying mode.
Data Shows Mixed Signals
Zoom out to the market level, though, and the story gets more complicated. Some quarters still post negative absorption, and big chunks of space remain on the market, particularly in older buildings. CBRE has highlighted recent periods of weak absorption and noted that more than 100 tenants are actively searching for millions of square feet of space, a reminder that demand is there but patchy. That split helps explain why pricing feels all over the map, with deep discounts on certain assets and relatively firm numbers for well‑leased, higher-quality offices.
Deals And Dollar Volume
Local market recaps that draw on CoStar analytics put Austin’s 12‑month office sales volume in the high hundreds of millions, roughly $914 million in the latest quarterly read, signaling a meaningful jump in closed deals. Partners Real Estate reports that the total, while national coverage from Commercial Property Executive points to office investment activity rebounding across the United States in 2025. Together, those trends suggest that local discounts and renewed capital interest in the sector are likely to keep Austin buyers in the hunt into next year…