Source: NAI REOC Austin/Xceligent
The substantial gains exhibited in the Austin office market in 2012 served as a solid springboard for continued improvement and growth in 2013. Maintaining leasing velocity, new leases and expansions commenced in the first three months of the year generated 223,653 square feet of positive net absorption.
Citywide, area office properties closed the first quarter with a vacancy rate of 12.6%. Tenants looking for space will likely encounter a more competitive environment than they remember just a couple of years ago and users may find fewer space alternatives due to Austin’s growing business base and tightening market. …Read Entire Post
Cousins Properties Inc., the Atlanta-based developer that built Austin’s Frost Bank Tower, recently broke ground on a Colorado Tower – a 29-story office building that will span roughly 371,000 square feet at Third and Colorado streets. Construction is expected to be completed November 2014.
According to Cousins’ press release, pre-leasing activity includes two high-profile companies – DuBois, Bryant & Campbell LLP and Scott, Douglass & McConnico LLP.
Also underway is IBC Bank Plaza – a 13-story, 194,794-square-foot office tower which broke ground in April at 500 W. Fifth St. and scheduled to open in Spring 2014. …Read Entire Post
Austin office properties have been trading at a rapid clip since the first of the year, resulting in nearly 3 million square feet of commercial space being sold to a wide variety of investors through April.
Of deals that could be quantified, an estimated $386 million worth of properties has changed hands including the Advanced Micro Devices Inc.’s Lone Star Campus (851,881 sf) purchased by Spear Street Capital for a reported $164 million. …Read Entire Post
Bank of America Tower
The sale of Bank of America Tower, which has been in the works since last fall, is about to close, according to an article released by the Austin Business Journal. Dallas-based Stream Realty is set to purchase the 26-story downtown tower located at 515 Congress Avenue which has been owned by T. Stacy & Associates. The sale price was not disclosed but the property is valued by the Travis Central Appraisal District at more than $70 million. …Read Entire Post
Seaholm Power Plant
The papers are signed. The City of Austin has conveyed the Seaholm Power Plant on the southwestern edge of downtown to Seaholm Power, LLC – the developer who has plans to redevelop the property into a $100-million mixed-use project. The beloved landmark, sitting on five acres of prime waterfront property, will be converted to 60,000 square feet of office space that will feature a plaza and green space open to the public. In addition, the construction of a two-story retail building is expected to be complete by next summer which will be anchored by California-based specialty grocer Trader Joe’s. Construction of a 30-story apartment building featuring approximately 300 units will take about 30 months to complete. …Read Entire Post
323 Congress Ave.
Three historic downtown buildings, commonly known as the Swift Building, the Day Building and the McKean-Eilers Building, were recently purchased by local investment group Cielo Realty Partners. The three buildings, which date back to the late 1800’s, are located at 315, 319 and 323 Congress Avenue and span roughly 46,000 square feet. …Read Entire Post
In a nod to Austin’s promising economic future, Austin-based Endeavor Real Estate Group and Granite Properties plan to start construction soon on a 220,600-square foot office campus in northwest Austin — the first major office project to launch in the area in almost five years.
Champion Office Park is slated for the northwest corner of RM 2222 and Capital of Texas Highway (Loop 360). The project will have two four-story buildings, one with 116,800 square feet and the other with 103,800 square feet, Endeavor officials told the American-Statesman. …Read Entire Post
A recent Commercial Property Executive article featured the recent KBS Strategic Opportunity REIT purchase of the Austin Suburban Portfolio, a group of three office properties totaling 518,000 square feet. The REIT purchased Park Centre (203,200 sf), Westech 360 (175,500 sf) and Great Hills Plaza (139,300 sf) from TPG/CalSTRS Austin L.L.C., a joint venture involving Thomas Properties Group Inc. and pension fund CalSTRS, for a reported $76 million.
Commercial Property Executive asked NAI REOC Austin’s Bob Rein to weigh in on the activity. Rein believes that recently announced corporate relocations and expansions along with a booming high-tech sector are driving demand for office space. …Read Entire Post
Los Angeles-based Karlin Real Estate, one of the most active real estate investors in Austin, recently purchased Plaza 35, a two-building office flex project spanning 186,000 square feet located at 12234 N. I-35.
At the time of the sale, the Class B property was reportedly 100 percent occupied by Yodle Inc., VirTex Assembly Services and Logisticare Solutions LLC. …Read Entire Post
California-based LegalZoom Inc., an online legal document service, recently purchased 9900 Spectrum Drive – a 206,000 square foot office and manufacturing building located in the Davis Springs Spectrum Business Park in Far Northwest Austin. The property reportedly sold by White Stone Properties Ltd. for $21 million. …Read Entire Post