Jun 14, 2023 - News

Meta offers more Austin office space for sublease

Illustration: Annelise Capossela/Axios

Tech giant Meta, the parent company of Facebook, is easing out of yet more downtown office space.

Why it matters: Austin real estate is increasingly tied to the fate of Big Tech, and any persistent Silicon Valley downturn could damper Austin's post-pandemic recovery.

Details: Meta is subleasing over 100,000 square feet of space at 300 West Sixth St., per the Real Deal.

What they're saying: "Our aim is to build a best-in-class remote work experience to help everyone do the best work of their careers no matter where they are," a Meta spokesperson told the Real Deal.

Of note: Meta cut more than 11,000 jobs in the fall and announced plans for 10,000 more layoffs in March.

By the numbers: In April, Austin's office market hit its highest vacancy rate (23.2%) since the Great Recession, per a report from JLL.

Yes, but: "Although the Austin market has seen a pullback in leasing, particularly from the tech industry, companies are continuing to hire, and the Austin unemployment rate remains below the Texas and national averages," the JLL report stated.

Flashback: TikTok backed out of occupying a half-dozen floors at 300 Colorado St., and Workrise put two floors up for sublease at One Eleven Congress.

Zoom out: Office space available for lease in the U.S. is at a record high, as remote work revolutionizes American work patterns.

The bottom line: Even as some Austin employers, notably City Hall, are pressing workers to come back downtown, major tech companies appear to be backpedaling on downtown investments.

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