Research & Forecast Report AUSTIN | OFFICE Q3 2017
Austin’s office market sees continued construction and rising rental rates
Kaitlin Holm Research and Marketing Coordinator | Austin
Boots On The Ground Commentary by David Bremer we need now is a couple of Amazon big-wigs to show up at the Austin airport to really generate some buzz for Austin development. Our “Boots on the Ground” view point is the voice of our experts, who have broken down the market data and compared it to what they are Future Forecast seeing for themselves. This is their take on what the numbers actually mean for the Austin office market. In fear of sounding like a broken record, we expect the overall office market to remain strong but reasonably flat. Core properties As predicted, the office market has remained extremely strong will continue to push rates and garner the most attention, while and rates have seen a slight increase over the past quarter. The suburban properties will potentially see a slight increase in trend of big companies eating up large spaces has become the vacancy, which could finally open the door for landlord concessions norm and the expansions of tech giants and co-working spaces (or as a tenant rep, what I like to call “the good old days”). I’m not have continued to embolden landlords and developers to bring holding my breath. speculative product to the market. Unfortunately for tenants, not enough of this product is becoming available beyond the pre- By The Numbers leasing phase to have a meaningful impact on rates or landlord concessions. TOTAL INVENTORY TOTAL VACANCY We continue to see mid to large sized companies chasing lower 51.2M SF 11.6% rates and pursuing developments just outside of the CBD in the East, South, or Domain submarkets. Companies such as Q3 NET ABSORPTION YTD NET ABSORPTION FloSports, Nexstar Digital and Main Street Hub have stepped in as full building users for a few of these buildings and we are -41,974 SF 609,304 SF seeing very heavy activity on the remaining buildings currently TOTAL UNDER planned or under construction. Significant demand for space in TOTAL PRE-LEASED close proximity to downtown is driving average rates higher and CONSTRUCTION is responsible for much of the absorption seen in the past three 3.8M SF 2.3M SF quarters, suburban Northwest and Southwest submarkets have AVERAGE SUBURBAN not fared quite as well. Rising central rates have incentivized CBD CLASS A enough tenants to explore the “burbs”, balancing those markets RATE/SF CLASS A with healthy/flat growth. The exception, of course, is the Domain, $34.02 $49.43 $34.80 which continues to successfully deploy the “build it and they will *Rates inclusive of estimated operating expenses. come” tactic.
There are a few blockbuster deals that are in the works including: a redevelopment plan for the 3M campus (currently under contract), sale of the Brandywine/DRA portfolio (1,164,000 SF), a possible land assemblage in close-in South Central Austin that could pave the way for some impressive new product over the next seven years, and no less than three 250K+ SF downtown tenants vying for new buildings years in advance of delivery. All to 5.0% over the quarter.
Austin Office Overview ANNUAL ABSORPTION, NEW SUPPLY, AND VACANCY Net Absorption New Supply Vacancy
In the third quarter of 2017, Austin’s office market saw 41,974 SF 1,200,000 25.0 of negative net absorption. This sets the year-to-date absorption 1,000,000 at 609,304 SF of positive net absorption. A majority of the positive 20.0 absorption happened in class B buildings with a total of 154,351 SF 800,000 15.0 of positive net absorption. Class A buildings in Austin saw 74,003 600,000
SF of negative net absorption and class C properties saw 122,322 400,000 10.0 SF of negative net absorption. 200,000 5.0 There is currently 3,801,853 SF of office space under construction 0 and 2,305,799 SF, or 60.6%, of that is pre-leased. The fourth -200,000 0.0 quarter of 2017 is expected to see 1,223,152 SF of deliveries and 601,577 SF, or 49.2%, of that is pre-leased.
Building 1 at 7601 Southwest Parkway was the only building that delivered in the third quarter. The 87,500 SF building was 33.4% pre-leased when it delivered in July. As of now, the fourth quarter is expected to see twenty two new buildings deliver, but some projects may get pushed into the new year. Market Indicators Annual Quarterly Quarterly The citywide average rental rate decreased marginally over the Relative to prior period Change Change Forecast* quarter from $34.03 per SF in Q2 2017 to $34.02 per SF in Q2 VACANCY 2017. Class A rental rates in Austin’s CBD decreased by 0.8% over the quarter to $49.43 per SF from $49.84 per SF in the second NET ABSORPTION quarter of 2017. Overall suburban Class A rental rates increased, NEW CONSTRUCTION from $33.57 per SF to $34.80, over the quarter. UNDER CONSTRUCTION In July, the Austin-Round Rock, TX MSA was ranked #9 on WalletHub’s “2017’s Most & Least Educated Cities in America”, which *Projected ranks MSAs across country based on where the most educated Americans are putting their degrees to work. Austin was the highest ranked in Texas and also beat out other major tech cities such as Seattle-Tacoma-Bellevue, WA (#11), Raleigh, NC (#15), and Summary Statistics San Diego-Carlsbad, CA (#21). Austin Office Market Q3 2016 Q2 2017 Q3 2017 Vacancy Rate 12.0% 11.6% 11.6% When recruiting the top talent with the best education, it helps to have the #8 ranked Public University in America in your city. The Net Absorption .184 .229 -.189 University of Texas - Austin was ranked #8 out of over 500 public (Million Square Feet) and state colleges by Niche and has been providing the city of New Construction .353 .264 2.40 Austin with highly educated employees who strengthen the Austin (Million Square Feet) area economy. Under Construction (Million Square Feet) 1.151 1.584 3.80
Vacancy & Availability Class A Vacancy Rate CBD 7.7% 9.3% 11.0% Austin’s citywide vacancy rate stayed the same over the past Suburban 13.1% 12.2% 11.8% two quarters remaining at 11.6%. The CBD class A vacancy rate increased from 9.3% in Q2 to 11.0% in Q3. The suburban class A Gross Asking Rents vacancy rate dropped quarter over quarter from 12.2% to 11.8%. Per Square Foot Per Year Average $34.68 $34.03 $34.02 Overall suburban vacancy decreased quarter over quarter from 12.2% in Q2 to 11.8% in Q3. Submarkets that saw a decrease in CBD Class A $49.62 $49.84 $49.43 vacancy over the quarter include Central, East, North/Domain, Suburban Class A $35.53 $34.57 $34.80 Northwest, Round Rock, South, and Southwest. The Round Rock submarket saw the largest decrease in vacancy, falling from 9.3%
2 Austin Research & Forecast Report | Q3 2017 | Office | Colliers International QUARTERLY ABSORPTION, NEW SUPPLY, AND VACANCY Job Growth & Unemployment Net Absorption New Supply Vacancy (not seasonally adjusted) 1,200,000 16.0% UNEMPLOYMENT 8/16 8/17 1,000,000 14.0%
12.0% AUSTIN 3.4% 3.4% 800,000 10.0% 600,000 TEXAS 4.9% 4.5% 8.0% 400,000 U.S. 5.1% 4.5% 6.0% 200,000 4.0%
0 2.0% Annual # of Jobs JOB GROWTH Change Added -200,000 0.0% AUSTIN 2.1% 21.1K
TEXAS 2.4% 286.3K
Absorption & Demand U.S. 1.5% 2.1M Austin’s office market posted 41,974 square feet of negative net absorption in Q3 2017. The three submarkets that experienced the largest positive net absorption gains over the quarter include Northwest, Central and Round Rock. CBD vs. Suburban A majority of the positive net absorption in the third quarter happened in the class A North/Domain submarket, totalling CLASS A OFFICE VACANCY 96,755 square feet of positive net absorption. Some of this can be 16.0% attributed to Social Solutions moving into their 25,231 square foot 14.0% space at Braker Pointe III (10801 North MoPac Expressway). The second highest positive net absorption occurred in class B space in 12.0% the Northwest submarket, with 66,183 square feet absorbed in the 10.0% third quarter. 8.0%
The South submarket had the most tenants sign leases for spaces 6.0% 10,000 square feet or larger. There were four leases signed in Q3 4.0% in the South submarket including Nexstar taking 17,900 square feet at Mirabeau at 2330 South Lamar Boulevard. The submarket 2.0% with the most square feet leased in Q3 was the CBD with 283,695 0.0% square feet. The most notable is Facebook’s 231,506 square foot lease at Third and Shoal (208 Nueces Street). Third and Shoal is set to deliver in Q3 of 2018. CBD Vacancy Suburban Vacancy
Rental Rates CLASS A OFFICE RENTS
According to CoStar, our data provider, Austin’s citywide average $50.00 rental rate decreased marginally over the quarter from $34.03 per $45.00 SF to $34.02 per SF. $40.00 $35.00 As expected, the highest rates across the Austin office market in $30.00 the first quarter were in CBD class A buildings where rental rates $25.00 averaged $49.43 per SF. Rental rates were also high in the Central $20.00 submarket and West Central submarket where class A rental rates reached $43.96 per SF and $42.82 per SF, respectively. $15.00 $10.00 Citywide class B rental rates increased in Q3 to $28.50 per square $5.00 foot from $28.18 in Q2. Class B rental rates in the CBD increased $0.00 by 6.9% over the quarter from $40.28 per square foot to $43.08 per square foot. CBD Rents Suburban Rents
3 Austin Research & Forecast Report | Q3 2017 | Office | Colliers International Leasing Activity
Austin’s office leasing activity recorded 529,113 SF in Q3 2017. Major transactions this quarter included Facebook taking several floors at 208 Nueces St (Third and Shoal), moving into 231,506 SF there once construction has finished.
Q3 2017 Top Office Lease Transactions BUILDING NAME/ADDRESS SUBMARKET SF TENANT LEASE DATE 208 Nueces St CBD 231,506 Facebook September-17 1601 S MoPac Expy Southwest 72,824 LifeSize1 September-17 203 Colorado St CBD 41,409 Parsley Energy July-17 2100 S Interstate 35 S South 26,876 (2nd Floor) July-17 2500 Bee Caves Rd Southwest 26,000 (3rd Floor)2 August-17 13801 Burnet Rd North/Domain 23,000 (1st Floor) September-17 6200 Bridgepoint Pky Northwest 22,820 iFly August-17 8300 N MoPac Expy Northwest 19,725 (3rd Floor) August-17 2330 S Lamar Blvd South 17,900 Nexstar3 August-17 4401 Westgate Blvd South 14,403 Altrua Healthshare July-17 7300 Ranch Road 2222 Northwest 11,192 Orion Consulting July-17 211 E 7th St CBD 10,780 Silver Car August-17 2010 S Lamar Blvd South 10,678 JE Dunn September-17 1 Renewal 2 Sublease 3 Colliers Deal Sales Activity
Austin’s office investment sales activity included three transactions. Intercontinental Real Estate Corporation purchased the 5th & Colorado office building, located at 201 West 5th Street. The eighteen story building was purchased from Lincoln Property Company for $119,000,000 ($664/SF). This building was 94% leased at the time of the transaction.
Q3 2017 Significant Sales Transactions – (100,000 SF or greater)
BUILDING ADDRESS SUBMARKET RBA (SF) YEAR BUILT BUYER SELLER SALE PRICE $/SF CLOSED
Intercontinental Real 201 W 5th St CBD 179,351 2016 Lincoln Property Company $119,000,000 $664 Sep-17 Estate Corporation 101 W Louis Henna Harbert Moore North/Domain 163,803 1984 UCM/MDC-RR Office LP $23,500,000 $143 Jul-17 Blvd1,2 Frontera, LLC
10431 Morado Cir1 Northwest 107,002 1997 Vanderbilt Partners DivcoWest $26,710,568 $250 Jul-17
Sources: CoStar and Real Capital Analytics 1Part of a portfolio 2 Sale Price is Approximate
LEADING THE NATION Austin ranked No. 1 as 2017 Best Places to Live in the United States according to U.S. News & World Report. The list ranked the country’s 100 largest metropolitan areas based on affordability, job prospects and quality of life
4 Austin Research & Forecast Report | Q3 2017 | Office | Colliers International AustinThis is placeholder Office text.Market Place Summary your text here.(CBD, Suburban, & Overall)
SUBLEASE NET ABSORPTION RENTAL INVENTORY DIRECT VACANCY VACANCY VACANCY RATE (%) VACANCY (SF) RATE
# OF RATE RATE TOTAL AVG ($/ CLASS TOTAL (SF) (SF) (SF) Q3-2017 Q2-2017 Q3-2017 Q2-2017 BLDGS (%) (%) (SF) SF) CBD A 30 7,601,467 885,090 11.6% 88,741 1.2% 973,831 12.8% 10.3% -189,661 229,076 $49.43 B 35 2,723,333 162,842 6.0% 30,744 1.1% 193,586 7.1% 7.7% 16,432 42,808 $43.08 C 10 605,277 22,178 3.7% 16,945 2.8% 39,123 6.5% 4.1% -14,265 -968 $28.35 Total 75 10,930,077 1,070,110 9.8% 136,430 1.2% 1,206,540 11.0% 9.3% -187,494 270,916 $47.85 SUBURBAN A 180 20,177,568 1,661,870 8.2% 559,483 2.8% 2,221,353 11.0% 11.6% 115,658 58,490 $34.80 B 332 16,917,558 2,066,304 12.2% 175,089 1.0% 2,241,393 13.2% 14.1% 137,919 -72,020 $27.04 C 61 3,206,989 297,189 9.3% 1,000 0.0% 298,189 9.3% 5.9% -108,057 30,005 $21.87 Total 573 40,302,115 4,025,363 10.0% 735,572 1.8% 4,760,935 11.8% 12.2% 145,520 16,475 $31.25 OVERALL A 210 27,779,035 2,546,960 9.2% 648,224 2.3% 3,195,184 11.5% 11.2% -74,003 287,566 $37.99 B 367 19,640,891 2,229,146 11.3% 205,833 1.0% 2,434,979 12.4% 13.2% 154,351 -29,212 $28.50 C 71 3,812,266 319,367 8.4% 17,945 0.5% 337,312 8.8% 5.6% -122,322 29,037 $22.37 Total 648 51,232,192 5,095,473 9.9% 872,002 1.7% 5,967,475 11.6% 11.6% -41,974 287,391 $34.02
Austin Suburban Office Market Summary
DIRECT SUBLEASE RENTAL INVENTORY VACANCY VACANCY RATE (%) NET ABSORPTION (SF) VACANCY VACANCY RATE
# OF RATE RATE TOTAL AVG CLASS TOTAL (SF) (SF) (SF) Q3-2017 Q2-2017 Q3-2017 Q2-2017 BLDGS. (%) (%) (SF) ($/SF) CEDAR PARK
A 2 232,274 28,765 12.4% 4,078 1.8% 32,843 14.1% 2.2% -27,714 0 $33.54 B 3 142,000 21,515 15.2% 9,405 6.6% 30,920 21.8% 8.5% -18,810 0 $25.70 ChartTotal Title–One5 Line 374,274 50,280 13.4% 13,483 3.6% 63,763 17.0% 4.6% -46,524 0 $31.40 CENTRAL . Chart Title A 4 520,288 15,028 2.9% 4,317 0.8% 19,345 3.7% 6.2% 12,839 6,830 $43.96 B SUBHEAD35 1 1,944,551 118,694 6.1%SUBHEAD 15,967 0.3% 124,661 SUBHEAD6.4% 1 8.8% 45,980 SUBHEAD10,746 1 $26.79 CBody 15 884,728 13,690 1.5% 0 0.0% 13,690 1.5% 2.1% 4,745 -8,530 $23.33 Total 54 3,349,567 147,412 4.4% 10,284 0.3% 157,696 4.7% 6.6% 63,564 9,046 $28.93 EAST A 3 162,582 38,611 23.7% 0 0.0% 38,611 23.7% 29.4% 9,238 -1,413 $40.55 B 15 1,385,953 454,820 32.8% 0 0.0% 454,820 32.8% 33.0% 2,141 -4,421 $32.96 C 5 202,765 24,000 11.8% 0 0.0% 24,000 11.8% 11.8% 0 5,050 $19.98 Total 23 1,751,300 517,431 29.5% 0 0.0% 517,431 29.5% 30.2% 11,379 -784 $36.55 FAR NORTHEAST B 1 23,408 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 - Total 1 23,408 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 - FAR NORTHWEST A 15 2,208,393 203,505 9.2% 41,913 1.9% 245,418 11.1% 10.2% -19,342 80,091 $29.75 B 9 347,418 31,562 9.1% 0 0.0% 31,562 9.1% 9.9% 2,844 1,445 $24.08 C 2 77,864 2,400 3.1% 0 0.0% 2,400 3.1% 3.1% 0 -2,400 $15.00 Total 26 2,633,675 237,467 9.0% 41,913 1.6% 279,380 10.6% 10.0% -16,498 79,136 $29.14
5 Austin Research & Forecast Report | Q3 2017 | Office | Colliers International Austin Suburban Office Market Summary - Continued
SUBLEASE NET ABSORPTION RENTAL INVENTORY DIRECT VACANCY VACANCY VACANCY RATE (%) VACANCY (SF) RATE
# OF RATE RATE TOTAL AVG CLASS TOTAL (SF) (SF) (SF) Q3-2017 Q2-2017 Q3-2017 Q2-2017 BLDGS. (%) (%) (SF) ($/SF) NORTH/DOMAIN A 15 2,177,806 83,527 3.8% 15,234 0.7% 98,761 4.5% 90.0% 96,755 -3,711 $30.52 B 29 1,646,935 166,988 10.1% 30,990 1.9% 197,978 12.0% 12.9% 14,410 -7,276 $23.90 C 2 102,925 76,801 0.0% 0 0.0% 76,801 74.6% 0.0% -76,801 0 - Total 46 3,927,666 327,316 8.3% 46,224 1.2% 373,540 9.5% 10.4% 34,364 -10,987 $28.07 NORTHEAST A 5 413,863 20,508 5.0% 31,230 7.5% 51,738 12.5% 6.4% -25,061 -732 $24.96 B 20 1,370,755 147,452 10.8% 7,673 0.6% 155,125 11.3% 10.6% -9,996 -27,521 $22.45 C 8 276,413 80,799 29.2% 0 0.0% 80,799 29.2% 29.2% 0 25,670 $19.90 Total 33 2,061,031 248,759 12.1% 38,903 1.9% 287,662 14.0% 12.3% -35,057 -2,583 $22.94 NORTHWEST A 73 6,924,554 592,567 8.6% 176,053 2.5% 768,620 11.1% 12.0% 61,870 -134,830 $36.01 B 99 4,423,304 526,876 11.9% 75,717 1.7% 602,593 13.6% 15.1% 66,183 -22,522 $29.01 C 5 428,563 153 0.0% 1,000 0.2% 1,153 0.3% 0.8% 2,411 0 $22.96 Total 177 11,776,421 1,119,596 9.5% 252,770 2.1% 1,372,366 11.7% 12.8% 130,464 -157,352 $33.24 ROUND ROCK A 3 308,130 3,901 1.3% 0 0.0% 3,901 1.3% 9.6% 25,574 2,283 $32.04 B 13 508,163 44,680 8.8% 0 0.0% 44,680 8.8% 11.8% 15,156 -10,423 $24.76 C 3 147,466 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 - Total 19 963,759 48,581 5.0% 0 0.0% 48,581 5.0% 9.3% 40,730 -8,140 $25.62 SOUTH A 5 395,493 35,809 9.1% 10,618 2.7% 46,427 11.7% 11.3% -1,689 0 $36.23 B 23 1,131,499 126,599 11.2% 1,226 0.1% 127,825 11.3% 11.9% 6,355 10,304 $29.88 C 12 682,703 43,426 6.4% 0 0.0% 43,426 6.4% 6.1% -1,797 9,399 $25.00 Total 40 2,209,695 205,834 9.3% 11,844 0.5% 217,678 9.9% 10.0% 2,869 19,703 $30.46 SOUTHEAST B 10 1,173,424 214,612 18.3% 1,709 0.1% 216,321 18.4% 18.3% -1,029 3,723 $23.26 C 5 259,292 37,283 14.4% 0 0.0% 37,283 14.4% 0.0% -37,283 0 $15.00 Total 15 1,432,716 251,895 17.6% 1,709 0.1% 253,604 17.7% 15.0% -38,312 3,723 $23.18 SOUTHWEST A 50 6,243,735 615,335 9.9% 276,040 4.4% 891,375 14.3% 14.1% -12,045 102,714 $37.89 B 72 2,735,000 208,554 7.6% 42,402 1.6% 250,956 9.2% 9.7% 14,685 -25,073 $30.48 C 3 94,138 14,145 15.0% 0 0.0% 14,145 15.0% 17.8% 2,603 0 $26.30 Total 125 9,072,873 838,034 9.2% 318,442 3.5% 1,156,476 12.7% 12.8% 5,243 77,641 $35.91 WEST CENTRAL A 5 590,450 24,314 4.1% 0 0.0% 24,314 4.1% 3.3% -4,767 7,258 $42.82 B 3 85,148 3,952 4.6% 0 0.0% 3,952 4.6% 4.6% 0 -1,002 $31.35 C 1 50,132 4,492 9.0% 0 0.0% 4,492 9.0% 5.1% -1,935 816 - Total 9 725,730 32,758 4.5% 0 0.0% 32,758 4.5% 3.6% -6,702 7,072 $41.67
6 Austin Research & Forecast Report | Q3 2017 | Office | Colliers International Office Development Pipeline
3,801,853 square feet of office space was under construction during Q3 2017. 7601 Southwest Parkway was the only building to deliver in Q3, totaling 87,500 square feet. Twenty proposed buildings were given the green light to begin construction this quarter.
PRE- EST. BUILDING NAME ADDRESS SUBMARKET SF DEVELOPER LEASED DELIVERY Walsh Tarlton Overlook 2530 Walsh Tarlton Ln Southwest 55,500 0.0% JTM Development Oct-17 3114 S Congress Ave 3114 S Congress Ave South 32,000 100.00% Unknown Oct-17 La Palma Plaza 12030 N Lamar Blvd North/Domain 25,400 0.0% Unknown Oct-17 Medical Towers at Bee Cave -- Bldg #1 3944 Ranch Road 620 S Southwest 22,900 100.00% Hat Trick Development Oct-17 9811 Vikki 9811 Vikki Ter Southwest 22,000 64.10% Unknown Oct-17 3503 Wild Cherry Dr 3503 Wild Cherry Dr Southwest 46,200 0.00% Unknown Oct-17 Sadler East, Building #2 1251 Sadler Dr Hays County 18,000 0.00% Unknown Oct-17 Medical Office Building I 15801 TX 71 Southwest 12,000 64.20% Unknown Oct-17 Medical Office Building II 15801 TX 71 Southwest 10,300 0.00% Unknown Oct-17 Shoal Creek Walk 835 W 6th St CBD 218,180 63.4% Schlosser Development Oct-17 Overlook at Barton Creek 317 Grace Ln Southwest 60,168 0.0% Unknown Nov-17 MoPac Centre 8611 N MoPac Expy Central 95,863 12.9% Eurus Capital Nov-17 UpCycle 2416 E 6th St East 81,711 0.2% EverWest Real Estate Partners Nov-17 Medical Towers at Bee Cave Bldg #2 3944 Ranch Road 620 S Southwest 42,000 76.19% Hat Trick Development Nov-17 16401 R R 620 16401 R R 620 Round Rock 14,935 100.00% Unknown Nov-17 801 Barton Springs Rd 801 Barton Springs Rd South 90,500 2.8% Generational Commercial Dec-17 Properties Oracle Campus Building 1 South Lakeshore Blvd Southeast 225,000 100.00% Ryan Companies Dec-17 Building 3 1200 Sheldon Cv Northeast 50,826 100.00% Unknown Dec-17 Mirabeau 2330 S Lamar Blvd South 34,169 94.32% Ellis Winstanley Dec-17 Covered Bridge Village 8701 W State Highway 71 Southwest 13,000 0.00% Unknown Dec-17 Fourth & Office 1800 E 4th St East 42,000 20.22% Capsa Ventures Dec-17 908 W Whitestone Blvd 908 W Whitestone Blvd Cedar Park 10,500 76.19% Unknown Dec-17 Oracle Campus 2300 Cloud Way Southeast 550,750 100.00% Ryan Companies Jan-18 Harrison Building 3205 Industrial Ter North/Domain 10,800 0.00% Unknown Jan-18 Springdale General 1023 Springdale Rd East 165,000 40.6% Unknown Mar-18 Broadmoor - Charles Schwab Austin 2309 Gracy Farms Ln North/Domain 265,790 100.00% Unknown Mar-18 Campus-2 901 E 6th St 901 E 6th St East 132,000 0.00% Pegalo Properties Jun-18
QUOTED GROSS RENTAL RATES FOR EXISTING TOP PERFORMING OFFICE BUILDINGS YEAR % AVAIL. RENT BUILDING NAME ADDRESS SUBMARKET RBA (SF) OWNER BUILT LEASED SF ($/SF) Frost Bank Tower 401 Congress Ave CBD 535,078 2003 88.6% 129,433 $69.38 CalSTRS One Eleven 111 Congress Ave CBD 518,385 1985 88.0% 89,015 $58.16 Cousins Properties Inc One American Center 600 Congress Ave CBD 503,951 1984 99.2% 88,693 $55.86 CalSTRS 300 West Sixth 300 W 6th St CBD 454,225 2001 98.9% 18,120 $63.78 CalSTRS 301 Congress 301 Congress Ave CBD 446,839 1985 91.1% 60,439 $59.52 PGIM Real Estate 100 Congress 100 Congress Ave CBD 411,536 1985 93.0% 63,573 $65.41 Invesco 816 Congress 816 Congress Ave CBD 433,024 1983 96.6% 29,161 $55.52 Cousins Properties, Inc. 7700 W Parmer Ln - Bldg. B 7700 W Parmer Ln - Bldg.B Far Northwest 335,138 1999 98.4% 5,373 $36.41 Accesso Partners, LLC Austin Centre 701 Brazos St CBD 326,335 1986 93.0% 82,857 $51.92 Sidra Real Estate, Inc. Cielo Center 1250 Capital of TX Hwy S Southwest 270,711 1984 84.9% 45,993 $35.00 Brandywine Realty Trust
Note: Avail. SF includes direct and sublet space as well as any future available space listed. Source: CoStar Property
7 Austin Research & Forecast Report | Q3 2017 | Office | Colliers International Q3 2017 Austin Office Highlights
FOR MORE INFORMATION Kaitlin Holm Research and Marketing Coordinator | Austin +1 512 539 3021 [email protected]
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