The Austin commercial real estate forecast is very difficult to predict, given so many factors are in a state of fluctuation. Although the area is benefiting from businesses fleeing the west coast and Northeast for the more friendly environment of the Lone Star State, there are substantial forces in play that do not have a clear trajectory. However, we can look at various elements to assess some possibilities of the commercial real estate market in Austin over the course of the next several months.

The commercial real property landscape in the city of Austin should be at its peak performance historically. But, the global pandemic and subsequent shutdowns triggered a series of events that continue to resonate. For instance, high taxes, heavy regulation, and local and state mandates in the Northeast and on the west coast caused many businesses to re-evaluate their location, and many have chosen to move. While some have already transferred their operations, others are in the early stages of the process.

Even though this is largely good news, other factors are having a very negative impact on the commercial real estate market in Austin. For example, supply chain disruptions, shortages of materials, a shortage in labor, and inflation are all inescapable. These are causing uncertainty in business plans and uneasiness about long-term moves. For these reasons and more, the commercial real estate market is in an extraordinary situation. Complicating matters more is the possibility foreclosures and evictions of commercial tenants ask the moratoriums against these legal processes have expired.

Because of the confluence of such conflicting factors, the commercial real estate market in Austin might experience a boom or bust in the coming months.