----- Central Austin, TX · Travis County
Commercial Real Estate in Central Austin, Texas
Office space, land, and redevelopment sites in the core of the city — from professional buildings near the Capitol and Pease Park to infill tracts on the edge of Mueller. Brian Novy has represented tenants, buyers, and sellers in Central Austin since 1985.
----- The Central Austin Market
The Core Is Two Markets — and Neither One Is the Downtown Tower
The towers get the headlines. Downtown office vacancy was just over 20% in 2026 and only starting to recover. But the deals most businesses actually make look nothing like a tower lease: in the first half of 2026, transactions under 10,000 SF made up 40% of Austin’s office leasing volume. In the core, those tenants want smaller, parkable buildings on the edge of downtown — close enough to walk to the Capitol, the courts, and UT, without CBD garage costs and operating-expense loads.
East of I-35 is the other Central Austin. Mueller, the 700-acre redevelopment of the city’s old airport, is planned for 6,900 homes and 4.75 million SF of commercial space, and its master development agreement is scheduled to end in 2027. As the master plan fills in, redevelopment moves to its edges — the older commercial and light-industrial tracts along Springdale Road, 51st Street, and Airport Boulevard.
Both sides sit inside the region’s densest daytime population: UT Austin’s record 55,000 students, downtown’s 131,000-plus employees, the state workforce around the Capitol, and four hospital campuses — Dell Seton Medical Center at UT, Ascension Seton Medical Center Austin on 38th Street, St. David’s Medical Center near 32nd Street, and Dell Children’s at Mueller.
West of I-35: Leasing Value
Judges’ Hill, Shoal Creek, the Capitol’s north and west edges
Small professional buildings, often on gross leases with on-site parking, a few blocks from the Capitol and downtown. The fit for law, lobbying, association, finance, engineering, and consulting firms that need to be close but don’t need a tower.
Current listing: 1609 Shoal Creek Blvd — 7,198 SF for lease
East of I-35: Redevelopment Value
Mueller’s edges, Springdale, 51st Street, Airport Blvd
Assemblage-scale tracts close to downtown and UT, where the land is now worth more than what sits on it. The fit for developers, investors, and owners deciding whether to sell, hold, or reposition.
Current listing: 3509 Rogge Lane — 2.761 acres for sale
$4.5B
525,000 SF
55,000
4.75M SF
----- What's Changing, and When
The Core Is Being Rebuilt All at Once
Three public projects will reshape access and demand in Central Austin over the next several years. If you’re signing a long lease or buying, your hold period will likely overlap all of them.
Late 2026
Capitol Complex Phase II finishes construction — two new state office buildings at 1501 Lavaca Street and 1500 Congress Avenue totaling 525,000 SF.
2027
State agencies move in, consolidating out of leased space around the city.
Light rail construction is expected to begin on the 9.8-mile first line from 38th Street through downtown.
Mueller’s master development agreement ends December 31, 2027.
2033
I-35 Capital Express Central targets completion, with lowered mainlanes, the upper decks removed, and new east–west crossings. Light rail revenue service is also targeted for 2033.
----- Market Intelligence
Central Austin Commercial Real Estate, By the Numbers
If you’re weighing a lease, purchase, sale, or project in the core, these are the fundamentals behind the decision.
| Metric | Central Austin | Context | What It Means Here |
|---|---|---|---|
| Downtown Office | Vacancy just over 20%, starting to recover (2026) | Citywide vacancy ~17%; 131,000+ downtown employees | Tenants have leverage in the towers, and edge-of-downtown buildings have to compete for the same firms. |
| Small-Tenant Demand | Deals under 10,000 SF = 40% of leasing volume | Austin metro, first half of 2026 | The core's smaller professional buildings match how most firms actually lease. |
| State Government | 525,000 SF Capitol Complex Phase II; occupancy 2027 | Consolidates agencies out of leased buildings | Firms that work with the state keep wanting to be near the Capitol, and consolidation may put some agency-leased space back on the market. |
| Central East / Mueller | 700 acres; 6,900 homes and 4.75M SF commercial planned | Master development agreement ends Dec. 31, 2027 | As Mueller fills in, redevelopment pressure shifts to the tracts around it. |
| Infrastructure | $4.5B I-35 rebuild (to 2033); 9.8-mile light rail (construction 2027) | Lowered mainlanes, removed upper decks, new crossings including 55th Street and Airport Blvd | Expect disruption during construction and better east–west access afterward. Check the schedule for your block before you commit. |
| Regional Medical Market | $38.13/SF asking; 10.8% vacancy; $513/SF; ~6.0% caps | Austin metro, Q4 2025; ~33,600 SF under construction metro-wide | With four hospital campuses in the core and little new supply, referral-driven medical space holds its value. |
If You're Leasing Space Here
Compare total occupancy cost, not base rent. Central Austin mixes gross, modified-gross, and triple-net leases, and parking can be free, reserved, or billed per space. Two quotes that look $5 apart can land in the opposite order once expenses and parking are counted.
Use the towers' vacancy even if you don't want a tower. Landlords of smaller buildings know what downtown is offering in free rent and allowances, so a well-run search can bring those terms to the table.
Ask about construction. Near I-35 or the Guadalupe rail corridor, confirm access, parking, and noise plans for the length of your term.
If You're Buying or Selling
Owner-user buildings near the Capitol are scarce. Small office buildings with parking in Judges' Hill and along Shoal Creek rarely trade, and many change hands through broker relationships before they are publicly listed.
The daytime population is the thesis. UT, state government, downtown employers, and the hospital district create steady demand for professional and medical space that doesn't depend on new rooftops.
Sellers: timing matters. Buyers are pricing in the I-35 and light rail timelines. Knowing where your property sits relative to future crossings and stations is part of setting the right price.
If You're Building or Repositioning
Zoning certainty is the value. In the core, a site that already allows the intended use by right can save months and a public zoning case. Verify entitlements before you price a site, not after.
Follow Mueller's edges. Mueller proved the market for dense mixed-use on the east side, and the remaining large tracts around it are where that demand goes next.
Plan for the new street grid. New I-35 crossings and future rail stations will change which blocks are easiest to reach. Sites near those points are worth underwriting for the long term.
----- Currently Available
Current Central Austin Listings
One property on each side of the core. Looking for something that isn't listed? Much Central Austin product trades privately — call (512) 750-5587.
Looking for opportunities in this area?
Not every commercial property makes it to the public market. Connect with Brian to discuss current, upcoming, and off-market opportunities that may fit your needs.
Connect With Brian----- Central Austin FAQs
Common Questions About Central Austin Commercial Real Estate
Answers from 40+ years of Central Texas deals. Have a question that isn’t here?
Please Call (512) 750-5587.
Why do businesses choose Central Austin over the suburbs?
Proximity. Central Austin puts a business within minutes of the Texas Capitol, the courts, the University of Texas, downtown’s 131,000-plus employees, and four major hospital campuses. For law, lobbying, association, finance, engineering, and consulting firms that work with the state or with downtown clients, that access is worth more than the lower rents of a suburban park. The trade-off is cost and parking, which is why many of these firms choose smaller buildings on the edge of downtown rather than the towers.
Is now a good time to lease office space in Central Austin?
For most tenants, yes. Downtown office vacancy was just over 20% in 2026 and only starting to recover, which gives tenants real leverage on rent, free rent, and improvement allowances. That leverage carries over to the smaller buildings at the edge of downtown, which compete with the towers for the same tenants. Deals under 10,000 square feet made up 40% of Austin’s office leasing volume in the first half of 2026, so small users are the market’s core customers. Compare full occupancy cost, not just base rent: gross versus triple-net structure, parking cost, and operating-expense exposure can change the answer.
How will I-35 reconstruction and light rail affect Central Austin commercial property?
In the near term, both bring construction disruption. The $4.5 billion I-35 Capital Express Central project will lower the highway’s mainlanes and remove the upper decks through Central Austin, with completion targeted for 2033. Austin’s first 9.8-mile light rail line will run from 38th Street through downtown on Guadalupe, with construction expected to begin in 2027. Over the long term, better east-west crossings and fixed transit are expected to strengthen property near new crossings and stations. Before you sign a lease or buy in these corridors, confirm the construction schedule and access plan for your block.
What redevelopment opportunities are there in Central East Austin near Mueller?
Mueller, the 700-acre redevelopment of Austin’s former airport, is planned for 6,900 homes and 4.75 million square feet of commercial space, and its master development agreement is scheduled to end December 31, 2027. As the master plan fills in, redevelopment moves to its edges: older commercial and light-industrial tracts along Springdale Road, 51st Street, and Airport Boulevard. The most valuable sites are those large enough for scale and zoned to allow the intended use by right, which avoids a zoning case.
Does The Novy Company have current listings in Central Austin?
Yes. Current Central Austin listings include 7,198 square feet of office space for lease at 1609 Shoal Creek Boulevard near the Capitol and Pease Park, and a 2.761-acre redevelopment site for sale at 3509 Rogge Lane near Mueller, priced at $3,300,000. Availability changes, and much Central Austin product trades before it is publicly listed. Call (512) 750-5587 to discuss current and off-market opportunities.
Have a Central Austin Property in Mind?
Yes. Current Central Austin listings include 7,198 square feet of office space for lease at 1609 Shoal Creek Boulevard near the Capitol and Pease Park, and a 2.761-acre redevelopment site for sale at 3509 Rogge Lane near Mueller, priced at $3,300,000. Availability changes, and much Central Austin product trades before it is publicly listed. Call (512) 750-5587 to discuss current and off-market opportunities.