Austin medical office space averaged $38.26 per square foot per year in asking rent in Q1 2026, according to Matthews’ Austin medical office report using CoStar data. Most medical space is quoted triple net (NNN), so a practice also pays its share of taxes, insurance, and maintenance, and the buildout is often a bigger cost than the rent itself.
What does medical office space rent for in Austin right now?
Here are the most recent published figures we could verify:
| Measure | Figure | Source |
|---|---|---|
| Austin medical office average asking rent | $38.26/SF per year, up 1.7% year over year | Matthews, Q1 2026 (CoStar data) |
| Austin medical office vacancy | 12.2% | Matthews, Q1 2026 |
| Austin medical office average asking rent, prior quarter | $38.13/SF per year | Matthews, Q4 2025 |
| Austin office (all types) full-service average rent | $45.02/SF per year | Partners Real Estate, Q1 2026 |
| U.S. medical outpatient building net asking rent | $27.55/SF per year | Transwestern, Q1 2026 |
A few cautions when reading these numbers. The Matthews report does not state whether its rent average is net or gross, so it is not a direct comparison to the full-service general office figure, which includes downtown high-rises with rents well above the suburban average. Asking rents are also what landlords advertise, not what tenants end up signing after concessions.
The practical takeaway: an average is a starting point. A newer building near a hospital and an older suburban building can be far apart, and the asking rate is only one line of the real cost. Our guide to how commercial rent works explains how to turn a $/SF quote into a monthly payment.
Why does medical office space cost more than regular office space?
The headline averages above do not show medical base rent running higher than general office. Medical tenants still tend to spend more in total, for four reasons.
Buildout
A medical suite is expensive to build. Exam rooms need sinks, which means drain lines run through the slab. Procedure rooms, labs, and imaging need dedicated circuits and sometimes shielding. Finishes have to be cleanable. A standard office floor with a few private offices and an open area costs far less to build than a clinic with ten exam rooms.
Plumbing
Plumbing is the single most expensive item to add or move after a building is finished. In a first-generation shell, every sink and restroom means cutting and trenching the concrete. That is why the location of existing drain lines matters so much when touring space.
HVAC
Clinics need more air changes, better filtration, and separate zones for rooms that run hotter or need different pressure. Upgrading a rooftop unit or adding zones is a real cost, and the heavier systems can also raise ongoing maintenance.
Parking
A law office fills its lot in the morning and empties it at night. A clinic turns its parking over all day as patients come and go, so medical users typically want more spaces per 1,000 square feet than a general office tenant, close to the front door. The City of Austin removed minimum parking requirements citywide in November 2023 (accessible spaces are still required), so a building’s parking is whatever the owner chose to build. Check the parking ratio before you fall for a space.
How do NNN charges work on Austin medical leases?
Most Austin medical office space is quoted triple net. Base rent covers the space itself. On top of that, the tenant pays a share of the building’s property taxes, insurance, and common area maintenance, usually billed monthly as an estimate and reconciled once a year.
Property taxes are a large share of NNN costs in Texas, and they move with appraisals. Ask the landlord for this year’s NNN estimate, the last two years of actual charges, and whether any expenses are capped. Our page on NNN and CAM charges covers what to look for.
Here is a hypothetical example to show the math. These numbers are for illustration only, not a quote:
- 3,000 square foot suite
- Base rent of $30.00/SF NNN
- NNN estimate of $12.00/SF
- All-in rate: $42.00/SF per year, or $126,000 a year
- Monthly: $10,500, before utilities, janitorial, and your own insurance
Run your own numbers with our lease cost calculator.
What TI allowance should a medical tenant expect?
A tenant improvement allowance is money the landlord contributes toward your buildout. The amount depends on the lease term, your practice’s financial strength, how much the landlord has to spend to make the space usable, and how badly the landlord wants to fill it.
A longer term usually earns a larger allowance, because the landlord has more years of rent to recover the investment. In first-generation space, the allowance often falls short of a full medical buildout, and the practice funds the difference. That gap is one of the most important numbers to pin down before you sign the letter of intent. Free rent during construction and the date rent actually starts belong in the same negotiation.
Can second-generation medical space lower the total cost?
Often, yes. Second-generation medical space is a former clinic with plumbing, exam rooms, and medical-grade HVAC already in place. The rent may look similar to a shell space, but if the layout fits your practice, you skip much of the most expensive construction and open sooner.
The savings depend on fit. A family practice moving into a former pediatric clinic may need paint and new flooring. A dental office moving into a former dermatology suite may still need significant plumbing work. Have a contractor walk the space before you rely on the savings.
On-campus, off-campus, or a retail center: how does location change the cost?
Where your practice sits affects rent, visibility, and who your patients are.
- On-campus or hospital-adjacent buildings. Close to referral sources and admitting privileges. These tend to be the most in demand and command the highest rents, and availability can be limited.
- Off-campus medical office buildings. Purpose-built for healthcare, with plumbing risers, larger elevators, and patient parking already designed in. Usually priced below on-campus space and common along suburban corridors.
- Retail centers. Urgent care, dental, physical therapy, and med spas often lease in shopping centers for signage and drive-by visibility. Rent and NNN charges follow the retail market, and a former restaurant or store usually needs a full medical buildout.
The suburbs matter too. Fast-growing areas north of Austin have their own supply and pricing. See our local pages for Round Rock, Cedar Park, and Georgetown.
Getting real numbers for your practice
Published averages lag the market and leave out concessions. The rates that matter are the ones landlords will actually sign today for your size, specialty, and term. Austin Commercial Sites, the Austin team of Foresite Commercial Real Estate, represents practices in medical office searches, and the landlord typically pays our fee. See how we run a search on our medical office page, or contact us to compare spaces side by side.
Sources
- Austin, TX Medical Office Market Report Q1 2026, Matthews (CoStar data), April 14, 2026
- Austin, TX Medical Office Market Report Q4 2025, Matthews (CoStar data), January 22, 2026
- Austin Office Q1 2026 Quarterly Market Report, Partners Real Estate, April 21, 2026
- U.S. Market Medical Outpatient Buildings Q1 2026, Transwestern, Q1 2026
- Austin becomes one of the largest cities in the country to get rid of parking requirements, KUT News, November 2, 2023
FAQ
Frequently asked questions
What is the average medical office rent in Austin?
Matthews reported an average Austin medical office asking rent of $38.26 per square foot per year in Q1 2026, based on CoStar data, up 1.7 percent from a year earlier. Individual buildings range well above and below that average depending on location, age, and condition.
Is medical office rent in Austin quoted NNN or gross?
Most Austin medical office space is quoted on a triple net (NNN) basis, meaning the tenant pays base rent plus a share of property taxes, insurance, and common area maintenance. Always ask for the current NNN estimate so you can compare the all-in cost.
Why does medical office space cost more than regular office space?
The biggest difference is usually the buildout, not the base rent. Exam rooms need plumbing at many sinks, more power, and stronger HVAC, and patients need convenient parking, all of which cost more to build and maintain.
Will an Austin landlord pay for my medical buildout?
Usually in part. Landlords commonly offer a tenant improvement (TI) allowance, and the amount depends on the lease term, your credit, and the condition of the space. A first-generation medical buildout often costs more than the allowance covers, so the practice funds the gap.
Is second-generation medical space cheaper to lease?
The rent may be similar, but the total cost is often lower because the plumbing, exam rooms, and HVAC are already in place. That can cut buildout spending and shorten the time before you open.
About the author
Tristen Palori is a licensed commercial real estate agent with Foresite Commercial Real Estate and leads Austin Commercial Sites, the firm's Austin team. He has worked Austin office, retail, medical, and industrial deals since 2019. More about Tristen.
