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Commercial Real Estate Since 1975

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Kim Gatley
Senior Vice President &
Director of Research
REOC Austin
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Websense picks Austin, will bring 470 jobs

 

Quarry Oaks

Quarry Oaks

Websense Inc. will move its corporate headquarters to Austin and bring with it a projected 470 jobs and about a $10 million investment.

The company’s Feb. 28 announcement follows City Council’s approval of a $438,000 incentives deal that also allowed the company access to a state-funded $4.5 million incentives package. San Diego-based Websense is a technology security company that was founded in 1994. …Read Entire Post

Work to start on Rollingwood Center

Rollingwood Center

Rollingwood Center

Endeavor Real Estate Group is about to break ground on Rollingwood Center on BeeCave Road.  The project will consist of two office buildings — one a four-story structure with 155,000 square feet and the other a two-story building with 60,000 square feet.

The project’s cost will be about $50 million, with the buildings scheduled to be ready in early 2015. …Read Entire Post

Fortis Property Group acquires Aspen Lake office portfolio

Aspen Lake One

Aspen Lake One

Brooklyn, New York-based Fortis Property Group recently acquired three office properties in Far Northwest Austin.  The largest of the three buildings is Aspen Lake One (205,071 sf) – a four-story 100% occupied office building situated at 13875 Research Blvd.   The other two buildings included the 10-story Tower of the Hills (174,000 sf) located at 13809 Research and Tower Point at 13805 Research. …Read Entire Post

REOC Austin releases 4Q 2013 office market update

Source: REOC Austin

Source: REOC Austin

Austin-area office properties turned in another strong performance in the final quarter of the year to close out 2013 on a high note.  According to the survey of more than 41.6 million square feet of office space, new leases and expansions generated 269,356 square feet of positive net absorption in the fourth quarter. 

Combined with the gains logged earlier in the year, fourth quarter activity pushed the annual total absorption figure over the one million mark to 1,071,129 square feet.  In turn, the positive absorption tightened the citywide vacancy rate to 11.3% – a level not seen since 2007. 

“Over the past two years, tenant demand for office space has steadily filled former “see-through” buildings and other large blocks of vacant space.  With the area’s vacancy rate restored to a pre-recession level, the market is ready for growth once again,” says Doug McGregor, Senior Office Consultant, REOC Austin. …Read Entire Post

Stonecreek Park purchased by Drawbridge Realty Trust

Stonecreek Park

Stonecreek Park

Stonecreek Park (76,910 sf), located at 3300 Duval Road, was recently purchased by San Francisco-based Drawbridge Realty Trust, LLC.  The two-story office building was acquired from the Lionstone Group for a reported $16.9 million.  …Read Entire Post

Colorado Tower reports pre-leasing activity

Colorado Tower

Colorado Tower

Colorado Tower, the 373,000-square-foot, Class A office tower under construction downtown at 303 Colorado Street, recently reported three sizeable leases totaling 79,000 square feet.

Pre-leasing activity included DuBois, Bryant & Campbell LLP (24,342 sf), Scott, Douglas & McConnico LLP (40,011 sf), and Munsch Hardt Kopf & Harr PC (14,768 sf).  …Read Entire Post

REOC Austin releases 3Q 2013 office market update

Source: REOC Austin

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

Velocis buys majority interest in two area office buildings

Las Cimas

Las Cimas

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

California firm buys The Summit at La Frontera

TheSummitatLaFronteraThe 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

JV to acquire Brandywine Austin office portfolio for $330M

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)