Austin’s South MoPac corridor is showing resilience in the city’s office market, maintaining vacancy rates significantly lower than those found downtown. According to Aquila Commercial, the corridor—which runs along MoPac Expressway from Lady Bird Lake to Highway 290—recorded a 13.8 percent vacancy rate in the second quarter of this year, a decrease from 18.1 percent in the previous quarter. This figure stands well below Austin’s metro average of about 17 percent and contrasts sharply with submarkets such as East Austin, where nearly half of all office space remains available.
Aquila attributes the area’s appeal to its location, pricing, and convenience. The firm noted that rents and operating expenses are more affordable compared to downtown properties, parking is free and widely available, and tenants can access central Austin within minutes. “The corridor feels like a tight micromarket, with no new construction in the pipeline,” said Aquila Principal Taylor McHargue.
Recent changes have also contributed to tightening supply. Last year, Austin purchased One and Two Barton Skyway buildings for consolidating city departments, removing nearly 400,000 square feet of office space from the private market. Companies such as JE Dunn Construction plan moves into South MoPac; JE Dunn will relocate next year into a 25,000-square-foot office at Terrace 6. These moves have further limited available inventory in the corridor’s total of approximately 3.3 million square feet.
Casey Casper, managing director at HPI Real Estate—which owns and occupies offices at Barton Oaks Plaza II and III—reported rising demand for space in South MoPac: “Companies weighing downtown often opt for South MoPac instead,” Casper said, noting easier commutes for employees living south or west of Austin as well as executives who reside nearby.
Relative affordability has been another factor drawing tenants away from downtown’s higher costs and vacancies. “Discounted rents, lower expenses and no parking charges have made the corridor more competitive at a time when cost-conscious tenants are balking at downtown’s 28 percent vacancy,” McHargue added.
By late June this year, Aquila reported that about 450,000 square feet remained available in South MoPac—including sublease offerings—making it one of few local submarkets trending toward high occupancy.
