Austin’s office sublease market continues to see high levels of available space, with about 4.4 million square feet on the market as of September 2025, according to CoStar. This figure represents a slight decrease from last year’s 4.7 million square feet but remains significant.
Seven major listings account for over a third of the total sublease space, spanning more than 1.7 million square feet, as reported by the Austin Business Journal. The largest share comes from Meta, which pre-leased all the office space at Sixth and Guadalupe in late 2021 but did not occupy it. Meta is currently marketing approximately 552,000 square feet after signing PricewaterhouseCoopers and another undisclosed tenant to partial subleases.
Other companies contributing to the sublease inventory include State Farm, which is offering 269,000 square feet at 8900 Amberglen Boulevard, and Superior HealthPlan with 216,000 square feet at 5900 East Ben White Boulevard that has remained on the market for over a year.
At Parmer Austin campus on McCallen Pass Drive, 3M is seeking tenants for a lab-heavy property measuring about 204,000 square feet. Home Depot is also offering nearly 200,000 square feet at its former tech hub that transitioned to remote work during the pandemic.
General Motors has listed 170,000 square feet at its Parmer Lane tech center, while Athenahealth is marketing 112,000 square feet at Seaholm Power Plant on West Cesar Chavez Street.
Vista Equity Partners plans to sublease roughly 40 percent—about 79,500 square feet—of its future headquarters at The Republic tower under construction downtown.
The surplus of available sublease space offers discounted rents and flexible terms for tenants compared to direct leases. However, these deals carry risk: if original tenants do not renew their leases or walk away when they expire, subtenants may lose their occupancy rights.
The size of Austin’s sublease inventory highlights an ongoing slowdown in the city’s office market. While net absorption has stabilized and new construction has slowed down in recent months CoStar, large-scale corporate retrenchments have kept vacancy rates elevated. Landlords are now competing with both new developments and substantial blocks of discounted space such as Meta’s unused offices.— Eric Weilbacher
