As Texas continues to be a magnet for technology firms, the commercial real estate landscape, particularly in Austin and Dallas, is undergoing a significant transformation.
In the first half of 2026, Austin recorded a staggering 35% increase in office space leasing driven predominantly by tech companies. According to the Austin Chamber of Commerce, the tech sector accounted for over $500 million in new investments in commercial properties.
"Austin is becoming the Silicon Valley of the South," remarked Jason Wright, Senior Vice President at CBRE in Austin. "The city's vibrant culture and skilled workforce make it an ideal location for tech firms looking to expand or relocate."
Meanwhile, Dallas is not lagging behind. The Dallas-Fort Worth (DFW) area reported a 25% growth in tech-related commercial leases, with companies like Google and Facebook increasing their footprints in the region. The DFW region has become a preferred destination due to its favorable business climate and diverse talent pool.
Despite concerns over rising interest rates, which typically dampen real estate investments, the tech sector's resilience has shielded the commercial market from potential downturns. Many developers are moving forward with their projects, including the much-anticipated Victory Park renovation, expected to bring over 1 million square feet of new office space online by the end of 2027.
According to Marcus & Millichap, the average asking rent for office space in Austin has risen to $45 per square foot, a significant jump from $32 just two years ago. In Dallas, rents have increased to an average of $40 per square foot, attracting more investors looking to capitalize on the rising demand.
The influx of tech companies is also spurring residential development, as new employees require housing. In neighborhoods like East Austin, new multifamily units are being constructed at a record pace, with a projected 40% increase in occupancy rates expected by the end of 2026.
As the summer of 2026 unfolds, Texas's commercial real estate sector appears poised for continued growth, driven primarily by the insatiable appetite of the tech industry. The state's pro-business policies and quality of life make it an attractive option for firms looking to establish or expand their presence in the United States.