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Austin's downtown commercial leasing surged well above pre-pandemic levels last year, and beat out Houston, Dallas and San Antonio for new leases and construction.

Why it matters: COVID surges and lockdowns have been particularly challenging for downtown business owners, but companies are expanding their footprint, bringing employees — and their wallets — to nearby restaurants and retail shops.

Driving the news: The Downtown Austin Alliance analyzed leasing and vacancies in the area for the group's annual state of downtown report.

What they're saying: Austin's office market has historically been tight, making it difficult for prospective new tenants to find what they need, according to Jenell Moffett, associate vice president of strategic initiatives for the Downtown Austin Alliance.

Yes, but: Despite the soaring number of new leases, employees have been slow to return to their offices.

The bottom line: Remote work isn't preventing companies' investments downtown.

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