Round Rock Office — Q1 2026

The headline number for Round Rock office in Q1 was a 90-basis-point improvement in direct vacancy, to 14.8%. That’s the third consecutive quarter of compression and the tightest the submarket has been since mid-2024. It is also misleading.

What’s actually leasing

Tenants under 5,000 SF accounted for 78% of net absorption this quarter — primarily professional services backfilling spec-suite product along the I-35 corridor. Landlords who have invested in spec suites are leasing them in 30-60 days at face rates flat year-over-year, with concessions trimmed by roughly half a month per year of term.

Above 15,000 SF the story is different. Three blocks of contiguous space came back to the direct market in Q1 — one from a sublease maturity that did not renew, two from right-sizing. Total available space over 15,000 SF actually grew quarter-over-quarter despite the headline compression.

Sublease overhang

The sublease market is what to watch. Sublease availability rose to 240,000 SF, with two-thirds carrying lease term of less than 18 months remaining. Subleases priced 15-25% below comparable direct space are the relevant comp for any tenant with flexibility on timing.

What this means

• Owners with sub-5,000 SF spec product: the market is good to you right now. Hold the line on face rate; expect deals to close in 45-60 days.
• Owners with 15,000+ SF availability: assume the comp is sublease, not direct. Price accordingly or invest in spec demising to participate in the small-footprint demand.
• Tenants under 5,000 SF: the spec-suite window is closing. The best inventory is going first; what’s left in Q3 will be the second tier.
• Tenants over 15,000 SF: there is real leverage here through year-end if you are willing to take sublease term. Direct deals are negotiable but the sublease arbitrage is the lever.

Full comps and submarket maps are in the PDF. Reach out if you’d like the underlying data file or a custom cut for your portfolio.