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Since the pandemic started in early 2020, a phrase I’ve heard referenced time and again is that we will begin to see a “flight to quality” amongst office tenants. The consensus seems to be that, as the recession progresses, the leasing expense delta between new office buildings and existing ones will begin to decrease, leading active tenants to increasingly favor new supply and best-in-class options.


While this idea makes intuitive sense, we were curious to see if a shift is truly underway in the Austin market and, if so, to what extent. In this article, we examine leasing volume in new versus existing office buildings in the Austin market since April 2020.

 

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