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In this brief market commentary, the speaker highlights a paradox in Austin's real estate vacancy trends. While vacancy rates for high‑end 4‑ and 5‑star properties dropped sharply—down 398 basis points year‑over‑year—overall stabilized vacancy in the city actually increased. The rise is attributed to new luxury buildings absorbing tenants that would have otherwise occupied existing properties, effectively shifting occupancy from older assets to the newest supply.

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