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Kim_Gatley
Kim Gatley
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enior Vice President & Director of Research at REOC Austin

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As Austin economy cools, fewer apartments in pipeline

AustinCityLimitSignThough Austin’s economic growth continues to slow, the foundations of the regional economy remain strong, according to the Federal Reserve Bank of Dallas. But the report also noted a sharp decline in the number of apartment permits issued in 2016 compared to a year earlier.

“Despite the low vacancy, permits for multifamily construction slowed notably in the second half of last year, and 2016 permits were down 18 percent compared with 2015,” reads the report. …Read Entire Post

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RD Management Acquires Shops at Tech Ridge

techridge_mixed-use

Tech Ridge mixed-use property.

RD Management has acquired Shops at Tech Ridge, for an undisclosed price. Excluding the recently vacated Target store, the 504,153-square-foot property is 96 percent occupied. Since purchasing the property, RD Management has signed a lease with Floor & Décor for 77,958 square feet of space in the former Target store. …Read Entire Post

CSW Development Sells Office Property

2711 w anderson

Linda Scott-MyStatesman.com

CSW Development has completed the disposition of an office property located at 2711 W. Anderson Lane in Austin. Paydar Properties Inc. acquired the two-story, 29,000-square-foot property for an undisclosed price. The buyer plans to redevelop the property into 27 Eleven, a mid-rise multifamily and mixed-use development in the near future.

Click here to read the full article: CSW Development Sells Office Property REBusiness 01-18-2017

BH Properties Buys Former Golfsmith HQs

golfsmith_logoLos Angeles-based BH Properties has acquired the former Golfsmith International Holdings Inc. headquarters facility in Austin out of Golfsmith’s bankruptcy liquidation process for $20.5 million. …Read Entire Post

Mothers’ Milk Bank scores bigger HQ in Austin

Mothers’ Milk Bank at Austin — the largest distributor of human milk in the country — is preparing to move into a property it purchased last year at 5925 Dillard Circle near the Austin Community College campus at the former Highland Mall. …Read Entire Post

New office tower underway at Austin’s Domain

domainauDevelopers have started work on Domain Tower, an 11-story building that will bring 310,000 square feet of space to market when it opens in early 2018.

Domain Tower will be the first office building at the Domain, which will be at 10721 Domain Drive from. Initial interest is coming from prospective tenants in the technology and financial services industries, say the developers. …Read Entire Post

HEB buys land near Austin airport

Larger HEB planned for Marble Falls.

HEB buys 17 acres close to the airport.

HEB Grocery Co. has purchased 17 acres east of Austin-Bergstrom International Airport, the site of a possible future store in a large mixed-use development taking shape. The San Antonio-based grocery chain bought the land at FM 973 and State Highway 71 for an undisclosed price, according to the Austin American-Statesman. …Read Entire Post

November surges with home sales

redhouseoutlineCentral Texas home sales soared nearly 16 percent in November over the same month last year, keeping the Austin area on track for a sixth straight year of record volume, according to the Austin Board of Realtors.

In its latest report, the board said 27,107 houses have been sold through the end of November, 3.7 percent more than during the same period in 2015. Once December’s sales are tallied, the board expects 2016’s sales to top last year’s 29,068 transactions, which marked the fifth year in a row of record sales in Central Texas. …Read Entire Post

REOC Releases 3Q 2016 Office Market Report

The Austin office market remains strong heading into the final quarter of the year with momentum expected to carry sustained activity into 2017.  New leases and expansions generated 782,267 square feet of positive net absorption in the third quarter.  Healthy gains were created by several newly completed Class A properties which came online with significant pre-leasing in place.  Domain 5, for example, was delivered anchored by Trend Micro (75,000 sf).  Similarly, 2700 La Frontera Plaza came online in  the Round Rock market nearly 90% pre-leased to Houghton-Mifflin-Harcourt (87,631 sf).  In the CBD sector, the 5th and Colorado building came online with almost 90% pre-leasing.

 

In all, more than 179,000 square feet of new office space was added to the market in the third quarter bumping the year-to-date total of newly delivered office space to nearly 779,000 square feet.  To date, demand continues to outpace new supply.  As a result, the citywide vacancy rate tightened from 8.6% last quarter to 8.1% at the end of the third quarter which is lower than 9.5% recorded in the same quarter a year ago.

Strong demand and diminished supply have propelled rental rates to an all-time high.  At the close of the third quarter, the citywide average rental rate reached $34.68 per square foot on an annual basis which marks a healthy 4.5% annual increase over the same period last year.  At the top of the market, Class A buildings in the CBD command an average quoted rental rate of nearly $51 per square foot, compared to $49.46 last quarter.  (To adjust for buildings which quote rents on a triple net basis, operating expense figures have been added into the equation to arrive at an average equivalent full-service rate.) …Read Entire Post

Diamond Building at Mueller is not your typical commercial space

muelleraustin_planThe first spec office building at Austin’s master-planned, mixed-used Mueller neighborhood, The Diamond Building is in some ways an ode to bohemia with its unconventional zigs and zags. None of the 37,198-square-feet has been pre-leased but that might change overnight — once would-be tenants realize that the views and location are outstanding.

Mueller includes 140 acres of parks and open space that mitigate heat islands created by asphalt and concrete. USGBC has ranked Mueller as gold certified for neighborhood development under a pilot program. It’s one of the largest communities under development in the world to earn the honor and the first in Texas to receive the designation in the Neighborhood Development category.

Click here to read the full article: Diamond Building at Mueller is not your typical commercial space Austin Business Journal 11-28-2016