Source: REOC Austin
Job growth continues to translate into new tenant leases and expansions in the Austin office market. According to the survey of nearly 41.6 million square feet of office space, gross leasing activity generated 303,810 square feet of positive net absorption in the third quarter led by the expansion of Pay Pal (66,000 sf) at 7700 W Parmer, Building D in the Far Northwest sector.
Activity in the suburban areas accounted for the lion’s share of activity in the third quarter. While office buildings in the CBD experienced a rather quiet 34,240 square feet of positive net absorption, suburban buildings experienced 269,570 square feet. Year-to-date, the greater office market has experienced a total net absorption of 760,944 square feet with the CBD and suburban markets accounting for 83,685 and 677,259 square feet, respectively. …Read Entire Post
Expanding their presence in the Austin area, Dallas-based Velocis Fund recently purchased the majority interest in two large office buildings – Arboretum Atrium and Las Cimas. The buildings were purchased from Alabama-based Alfa Insurance Co. Moore & Associates will retain a minority interest.
Arboretum Atrium (91,083 sf), located in the Northwest sector at 9737 Great Hills Trail, is 100 percent leased.
Las Cimas I (82,787 sf), located in the Southwest sector at 804 Las Cimas Blvd., is part of a four-building complex. …Read Entire Post
The Summit at La Frontera (87,186 sf), a Class A office building located at 810 Hester’s Crossing Road in Round Rock, recently sold to a California-based private family investment firm. The seller was a partnership of Moore & Associates Inc. in Austin and CenterSquare Investment Management in Plymouth Meeting, Penn. …Read Entire Post
Brandywine Realty Trust, a real estate investment, announced today that it has formed a joint venture with DRA Advisors LLC (“DRA”). Brandywine and DRA will each own a 50% interest in the venture that will acquire Brandywine’s wholly-owned office portfolio located in the Southwest submarket including Barton Skyway (786,845 sf), The Park on Barton Creek (205,195 sf), 7000 West at Lantana (136,075 sf) and Cielo Center (270,711 sf). Brandywine will continue to provide property management, leasing, and construction management services.
Brandywine and DRA intend to jointly pursue additional office opportunities in targeted Austin sub-markets and plan to co-invest additional equity in acquisitions that meet certain investment criteria.
The venture will acquire the properties from Brandywine for $330.0 million or $236 per square foot, representing a capitalization rate of approximately 6.7% cash. The transaction and related financings are expected to close early in the fourth quarter.
Click to read Brandywine Realty Trust Announces Austin, Texas Joint Venture with DRA Advisors LLC; Brandywine Contributes Wholly-Owned Office Properties Valued at $330 Million (PRNewswire, 9-16-13)
New ABOR HQ
The Austin Board of Realtors (ABOR) will build a new headquarters on a bluff overlooking the Great Hills neighborhood in Northwest Austin.
The building, tentatively planned at between 30,000 and 33,000 square feet, will be nestled into the hillside on a 5.2-acre tract at 4800 Spicewood Springs Road. …Read Entire Post
State Farm Operations Center
8900 Amberglen Blvd.
State Farm Mutual Automobile Insurance Company recently sold its office facility (448,898sf) located at 8900 Amberglen Blvd. near Parmer Ln. and SH 45 in the 263-acre master-planned Amber Oaks Corporate Center. New York-based W. P. Carey Inc., a real estate investment trust (REIT), purchased the property for $110 million. The transaction includes an agreement for State Farm to lease the property back for 15 years, with two five-year renewal options.
…Read Entire Post
Notable sales tracked by NAI REOC Austin
Investment activity of Austin-area office buildings remains strong in the first half of 2013, with twice as many buildings changing hands compared with mid-year 2012. …Read Entire Post
Source: NAI REOC Austin / Xceligent
It’s no wonder that Bloomberg’s April report named Austin the top Boomtown in America – more than 25,000 new residents flocked to Austin last year, according to data released by the Census Bureau in May. At latest count, Austin moved into eleventh spot on the list of Largest U.S. Metros, up from thirteenth the previous year. More importantly, in the midst of soaring population, the success and growth of local businesses continue to support job creation.
According to the Texas Workforce Commission, the Austin-Round Rock-San Marcos MSA added 28,700 new jobs over the past twelve months ending June 2013 for an annual growth rate of 3.5%. A decidedly strong 8.2% growth rate within the Professional & Business Services sector is of particular significance to the local office market due to the close correlation between job growth and demand for office space.
Dynamic job growth translated into new tenant leases and expansions which generated 384,727 square feet of positive net absorption in the local office market, according to the second quarter report released by NAI REOC Austin. …Read Entire Post
717 E Parmer
Parmer at Tech Ridge (320,500 sf), located at 717 E. Parmer Lane, was recently purchased by Gladstone Commercial Corporation for a reported $57.5 million, according to the SEC. The seller, Los Angeles-based Karlin Real Estate, flipped the property after buying the empty building only a year ago from Dell. …Read Entire Post
Domain 7 Rendering courtesy Endeavor
The Domain, a growing North Austin mixed-use development located off MoPac and Burnet Road, is slated to add two new office buildings totaling 362,000 square feet in Domain 2 (140,000 sf) and Domain 7 (222,000 sf).
Austin-based HomeAway Inc. has reportedly committed to 115,000 square feet in the planned five-story Domain 2 building. The space is expected to accommodate 750 employees for the online vacation rental service. HomeAway plans to take occupancy of the building in September 2014. …Read Entire Post