Research & Forecast Report AUSTIN | OFFICE Q1 2018
Austin’s office market starts the year slow, but steady
Kaitlin Holm Research and Marketing Coordinator | Austin
Boots On The Ground Commentary by David Bremer Future Forecast
Our “Boots on the Ground” view point is the voice of our experts, who Our recent forecasts have been correct and remain the same for have broken down the market data and compared it to what they are the next quarter; relatively flat rates with small increases only in seeing for themselves. This is their take on what the numbers actually prime markets, no meaningful over-delivery to help solve demand mean for the Austin office market. issues, etc. We’ve started to see some taxes come in for 2018 and unfortunately it seems the City of Austin is keeping the pedal to When you look at the numbers, the office market was relatively the metal. This may actually force some Landlords to lower rates flat in Q1 2018. Absorption was negligible, vacancy trended up to be competitive, but won’t actually help tenants’ bottom lines. slightly and rates increased. Our team believes that this “lack of Construction pricing seems to have leveled out which should hold activity” was based primarily on standard cyclical activity (i.e. improvement allowances steady. Lastly, we expect competition for lack of moves and deal-push over the holidays). On the ground, prime central space to remain strong as more and more national however, we’ve seen an uptick of activity and are tracking a large credit worthy tenants (without the same pricing sensitivities) grow. number of medium and large companies either new to Austin or If you’ve got good space, be prepared to act early and protect it. making considerable expansions. Landlords have noticed this as well and it has resulted in a slight uptick of rates even though By The Numbers vacancy went up and absorption went down. Operating expenses saw another increase, but thankfully the jump was relatively minor TOTAL INVENTORY TOTAL VACANCY in comparison to recent quarters. 50.2M SF 11.2% In Q1 we saw another 792,705 SF of developments kick off, which brings the current under construction total in Austin to 3,456,491 SF. The construction pipeline remains full, but we’re still seeing Q1 NET ABSORPTION YTD NET ABSORPTION the majority of the “prime”, new projects being spoken for prior -336,598 SF -336,598 SF to delivery. We’d be very surprised if any of the CBD, East or South-Central properties deliver with any meaningful vacancy. TOTAL UNDER TOTAL PRE-LEASED The few Northwest/Round Rock properties that chose to go CONSTRUCTION spec are having relatively good leasing success and most other 1.8M SF shovel-ready sites continue to hold for anchor tenants. In terms of 3.4M SF activity, we’ve seen that the slowest market (as evidenced by lack AVERAGE CBD CLASS A SUBURBAN of sublease movement and/or direct absorption) is the Southwest RATE/SF $57.05 CLASS A submarket. $35.28 as tracked by Colliers $37.05 *Rates inclusive of estimated operating expenses. Austin Office Overview
In the first quarter of 2018, Austin’s office market reported 336,598 ANNUAL ABSORPTION, NEW SUPPLY, AND VACANCY SF of negative net absorption. The majority of the negative absorption happened in class B buildings with a total of 278,779 Net Absorption New Supply Vacancy 1,000,000 25.0 SF of negative net absorption. Class A buildings in Austin posted
46,597 SF of negative net absorption and class C properties posted 800,000 20.0 11,222 SF of negative net absorption. 600,000 15.0 There is currently 3,456,491 SF of office space under construction 400,000 and 1,882,974 SF of that is pre-leased. The second quarter of 2018 10.0 is expected to see 810,680 SF of deliveries and 281,886 SF of 200,000 that is pre-leased. One of the buildings set to deliver in the second 5.0 0 quarter of 2018 is Springdale General. The 165,000 SF building is currently 81.8% pre-leased. Jones-Dilworth, Inc. is rumored to be -200,000 0.0 taking a large portion of Springdale General once it delivers.
Oracle’s new 550,750 SF Campus at 2300 Cloud Way delivered in January and was the largest of the six buildings that delivered in the first quarter. Looking forward, the second quarter in 2018 is expected to see fourteen new buildings deliver.
The citywide average rental rate increased over the quarter from Market Indicators Annual Quarterly Quarterly $34.79 per SF in Q4 2017 to $35.28 per SF in Q1 2018. Class A Relative to prior period Change Change Forecast* rental rates in Austin’s CBD decreased by 0.7% over the quarter VACANCY to $51.45 per SF from $51.85 per SF in the fourth quarter of 2017. Overall suburban Class A rental rates increased, from $36.05 per NET ABSORPTION SF to $37.05, over the quarter. NEW CONSTRUCTION
In January, Business Insider released a list of the Amazon HQ2 UNDER CONSTRUCTION short-list cities and their ranking by likeliness to be chosen for the new headquarters. The ranking came from a compilation of *Projected predictions from places like Moody Analytics, The New York Times, The Wall Street Journal, CNBC and more. Austin was ranked 3rd on the list behind Atlanta at #1 and Boston at #2. They quoted an article from Moody’s that stated “Austin has a much lower cost of Summary Statistics living than places such as Silicon Valley. Even though house prices Austin Office Market Q1 2017 Q4 2017 Q1 2018 have been rising and are high for Texas or the South, they are well Vacancy Rate below those in California or the Northeast. Anecdotally the quality 11.2% 10.5% 11.2% of life is high, and many want to live in the ‘Silicon Hills.’ Further, Net Absorption .204 .525 -.336 being in Texas, Austin resides in a business-friendly state that (Million Square Feet) seeks to attract and keep companies.” New Construction (Million Square Feet) .842 .443 .792
Vacancy & Availability Under Construction (Million Square Feet) 2.81 3.84 3.45 Austin’s citywide vacancy rate increased from 10.5% in the fourth quarter of 2017 to 11.2% in the first quarter of 2018. The CBD class Class A Vacancy Rate CBD 7.3% 9.8% 9.1% A vacancy rate decreased from 9.8% in the fourth quarter of 2017 Suburban 11.4% 10.2% 10.7% to 9.1% in first quarter in 2018. The suburban class A vacancy rate increased quarter over quarter from 10.2% to 10.7%. Gross Asking Rents Per Square Foot Per Year Overall suburban vacancy increased quarter over quarter from Average $33.85 $34.79 $35.28 11.0% in Q4 2017 to 11.8% in Q1 2018. The only submarkets that recorded a decrease in vacancy over the quarter include Cedar CBD Class A $49.25 $51.85 $51.45 Park and West Central. The Northeast submarket reported the Suburban Class A $34.42 $36.05 $37.05 largest increase in vacancy, climbing from 13.8% to 17.9% over the quarter.
2 Austin Research & Forecast Report | Q1 2018 | 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 2/17 2/18 1,000,000 14.0%
12.0% AUSTIN 3.5% 2.8% 800,000 10.0% 4.8% 4.1% 600,000 TEXAS 8.0% 400,000 U.S. 4.9% 4.4% 6.0% 200,000 4.0%
0 Annual # of Jobs 2.0% JOB GROWTH Change Added -200,000 0.0% AUSTIN 3.7% 37.3K
TEXAS 2.4% 288.6K
Absorption & Demand U.S. 1.6% 2.3M Austin’s office market posted 336,598 square feet of negative net absorption in Q1 2018. The four submarkets that experienced positive net absorption gains over the quarter include CBD, Cedar Park, Southeast and West Central. CBD vs. Suburban
A majority of the positive net absorption in the first quarter CLASS A OFFICE VACANCY occurred in the class A Northeast submarket, totaling 36,240 16.0% square feet of positive net absorption. Some of this can be 14.0% attributed to Rackspace moving into an 87,884 square foot space at Northview Business Center (9001 I-35 North). The second 12.0% highest positive net absorption occurred in class B space in the Far 10.0% Northwest submarket, with 21,720 square feet absorbed in the first quarter, with an undisclosed tenant moving into a 10,828 square 8.0% foot space at Amber Oaks I (9401 Amberglen Boulevard). 6.0%
The CBD submarket recorded the greatest number of leases for 4.0% spaces 10,000 square feet or larger in the first quarter. There were 2.0% ten leases signed in Q1 in the CBD submarket including Bank of America taking 51,549 square feet at Third + Shoal (208 Nueces 0.0% Street). The CBD submarket was also the submarket with the highest amount of square feet leased in Q1 with 192,490 square feet reported. One of the leases signed was Credit Shop’s 15,556 CBD Vacancy Suburban Vacancy square foot lease at 504 Lavaca Street. CLASS A OFFICE RENTS Rental Rates $50.00 According to CoStar, our data provider, Austin’s citywide average $45.00 rental rate increased over the quarter from $34.79 per SF to $40.00 $35.28 per SF. $35.00 $30.00 As expected, the highest rates across the Austin office market in $25.00 the fourth quarter were in CBD class A buildings where rental rates averaged $51.45 per SF. Rental rates were also high in the Central $20.00 and West Central submarkets where class A rental rates reached $15.00 $43.56 per SF and $43.54 per SF, respectively. $10.00 $5.00 Citywide class B rental rates increased in Q1 from $28.58 in Q4 to $0.00 $28.64. Class B rental rates in the CBD increased by 1.8% over the quarter from $42.59 per square foot to $43.38 per square foot in Q1, 2018. CBD Rents Suburban Rents
3 Austin Research & Forecast Report | Q1 2018 | Office | Colliers International Leasing Activity
Austin’s office market recorded 37,227 SF of leasing activity in Q1 2018. Major transactions this quarter included Bank of America taking three floors at 208 Nueces Street (Third + Shoal), totalling 51,549 SF. This lease contributed to the 192,490 SF of leases signed in the CBD during the first quarter.
Q1 2018 Top Office Lease Transactions BUILDING NAME/ADDRESS SUBMARKET SF TENANT LEASE DATE 208 Nueces St CBD 51,549 Bank of America Jan-18 13011 McCallen Pass Dr Northeast 31,230 Undisclosed2 Feb-18 6500 River Place Blvd Northwest 31,135 Undisclosed Feb-18 1300 E 5th St East 31,000 Flo Sports Jan-18 310 Comal St East 27,775 DPR Construction Jan-18 3300 N Interstate 35 Central 24,948 Undisclosed Jan-18 9606 N MoPac Expy Northwest 24,872 Undisclosed Feb-18 1501 S MoPac Expy Southwest 24,753 CSIdentity Corporation1 Mar-18 416 Congress Ave N CBD 21,000 Undisclosed Feb-18 4516 Seton Center Pky Northwest 20,384 Undisclosed Jan-18 500 W 2nd St CBD 19,981 Undisclosed Jan-18 2530 Walsh Tarlton Ln Southwest 18,778 Virtue Financial Jan-18 401 Congress Ave CBD 17,923 Undisclosed Jan-18 504 Lavaca St CBD 16,147 Undisclosed Mar-18 504 Lavaca St CBD 15,556 Credit Shop Jan-18
1 Renewal 2 Sublease
Sales Activity
Austin’s office investment sales activity included eight transactions. Lionstone Investments purchased Rollingwood Center I & II from Endeavor Real Estate Group, which totaled 214,000 SF. The 175,000 SF YETI Campus (Lantana Ridge I & II) was purchased by Lantana Cooler LLC as one of the five portfolio sales in the first quarter.
Q1 2018 Significant Sales Transactions – (100,000 SF or greater)
BUILDING ADDRESS SUBMARKET RBA (SF) YEAR BUILT BUYER SELLER SALE PRICE $/SF CLOSED
Domain Point II - 11921 TIER REIT, Endeavor North/Domain 162,959 2000 Crow Holdings $50,737,494.20 $311.35 Jan-18 MoPac Expy 1,2 RE Group World Class 6801 River Place Blvd 1 Northwest 1,179,741 1987 3M Undisclosed N/A Feb-18 Holdings
11601 Alterra Pky North/Domain 291,058 2017 TIER REIT, Inc. Shorenstein Properties, LLC Undisclosed N/A Mar-18
Rollingwood Center I Lionstone & II - 2500 Bee Caves Southwest 214,000 2015 Endeavor Real Estate Group Undisclosed N/A Jan-18 Investments Rd 1 Honeck Properties, 1821 Directors Blvd Southeast 206,418 1985 Honeck Properties, LP Undisclosed N/A Jan-18 LP Lantana Ridge I & Goldman Sachs, Lincoln II- 7601 Southwest Southwest 168,923 2017 Lantana Cooler LLC Undisclosed N/A Jan-18 Property Co Pkwy 1 Austin Independent Austin-4000 South Holdings 4000 S Interstate 35 1 South 141,000 1986 Undisclosed N/A Feb-18 School District LLC Barton Ridge - 4544 S EverWest RE South 130,613 1985 SteelWave Undisclosed N/A Feb-18 Lamar Blvd Partners
Sources: CoStar and Real Capital Analytics 1Part of a portfolio 2 Sale Price is Approximate
4 Austin Research & Forecast Report | Q1 2018 | Office | Colliers International AustinThis is placeholder Office text.Market Place Summary your text here.(CBD, Suburban, & Overall)
SUBLEASE NET ABSORPTION RENTAL INVENTORY DIRECT VACANCY VACANCY VACANCY RATE (%) VACANCY (SF) RATE
# OF RATE RATE TOTAL AVG ($/ CLASS TOTAL (SF) (SF) (SF) Q1-2018 Q4-2017 Q1-2018 Q4-2017 BLDGS (%) (%) (SF) SF) CBD A 29 7,511,658 601,663 8.0% 84,861 1.1% 686,524 9.1% 9.8% 47,261 76,230 $51.45 B 36 2,831,188 232,048 8.2% 28,305 1.0% 260,353 9.2% 7.5% -47,199 -19,568 $43.38 C 9 524,277 15,820 3.0% 0 0.0% 15,820 3.0% 3.2% 948 22,355 $29.83 Total 74 10,867,123 849,531 7.8% 113,166 1.0% 962,697 8.9% 8.9% 1,010 79,017 $49.30 SUBURBAN A 180 19,934,838 1,734,969 8.7% 398,535 2.0% 2,133,504 10.7% 10.2% -93,858 236,630 $37.05 B 328 16,463,032 2,082,815 12.7% 185,777 1.1% 2,268,592 13.8% 12.4% -231,580 171,707 $27.12 C 58 2,967,914 242,320 8.2% 6,915 0.2% 249,235 8.4% 8.1% -12,170 38,074 $23.47 Total 566 39,365,784 4,060,104 10.3% 591,227 1.5% 4,651,331 11.8% 11.0% -337,608 446,411 $32.46 OVERALL A 209 27,446,496 2,336,632 8.5% 483,396 1.8% 2,820,028 10.3% 11.5% -46,597 312,860 $39.96 B 364 19,294,220 2,314,863 12.0% 214,082 1.1% 2,528,945 13.1% 13.4% -278,779 152,139 $28.72 C 67 3,492,191 258,140 7.4% 6,915 0.2% 265,055 7.6% 9.5% -11,222 60,429 $22.18 Total 640 50,232,907 4,909,635 9.8% 704,393 1.4% 5,614,028 11.2% 10.5% -336,598 525,428 $35.28
Austin Suburban Office Market Summary
DIRECT SUBLEASE RENTAL INVENTORY VACANCY VACANCY RATE (%) NET ABSORPTION (SF) VACANCY VACANCY RATE
# OF RATE RATE TOTAL AVG ($/ CLASS TOTAL (SF) (SF) (SF) Q1-2018 Q4-2017 Q1-2018 Q4-2017 BLDGS (%) (%) (SF) SF) CEDAR PARK
A 4 442,884 89,978 20.3% 4,078 0.9% 94,056 21.2% 21.7% 1,886 24,471 $31.40 B 3 142,000 21,405 15.1% 9,405 6.6% 30,810 21.7% 21.8% 110 0 $25.70 ChartTotal Title–One7 Line 584,884 111,383 19.0% 13,483 2.3% 124,866 21.3% 21.7% 1,996 24,471 $30.57 CENTRAL . Chart Title A 3 474,288 70,943 15.0% 4,317 0.9% 75,260 15.9% 6.5% -44,568 -11,347 $43.56 B SUBHEAD33 1 1,869,916 157,746 8.4%SUBHEAD 124,636 1.3% 182,382 SUBHEAD9.8% 1 7.5% -41,796 SUBHEAD-46,323 1 $26.45 CBody 13 776,153 16,869 2.2% 0 0.0% 16,869 2.2% 1.6% -4,478 -1,901 $22.72 Total 49 3,120,357 245,558 7.9% 28,953 0.9% 274,511 8.8% 5.9% -90,842 -59,571 $29.50 EAST A 3 162,582 0 0.0% 0 0.0% 0 0.0% 3.0% 4,866 33,745 $40.55 B 14 1,086,985 495,877 45.6% 0 0.0% 495,877 45.6% 45.1% -5,276 -21,767 $32.75 C 4 147,187 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 - Total 21 1,396,754 495,877 35.5% 0 0.0% 495,877 35.5% 35.5% -410 11,978 $34.08 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 13 1,997,783 158,994 8.0% 14,371 0.7% 173,365 8.7% 7.0% -32,755 -1,692 $31.74 B 9 347,328 10,936 3.1% 0 0.0% 10,936 3.1% 9.4% 21,720 -1,094 $24.06 C 3 139,876 9,730 7.0% 3,535 2.5% 13,265 9.5% 5.5% -5,515 -1,200 $21.39 Total 25 2,484,987 179,660 7.2% 17,906 0.7% 197,566 8.0% 7.3% -16,550 -3,986 $30.15
5 Austin Research & Forecast Report | Q1 2018 | Office | Colliers International Austin Suburban Office Market Summary - Continued
SUBLEASE NET ABSORPTION RENTAL INVENTORY DIRECT VACANCY VACANCY VACANCY RATE (%) VACANCY (SF) RATE
# OF RATE RATE TOTAL AVG CLASS TOTAL (SF) (SF) (SF) Q1-2018 Q4-2017 Q1-2018 Q4-2017 BLDGS. (%) (%) (SF) ($/SF) NORTH/DOMAIN A 15 2,187,755 65,155 3.0% 1,927 0.1% 67,082 3.1% 3.2% 1,964 29,715 $38.66 B 32 1,786,388 194,670 10.9% 19,931 1.1% 214,601 12.0% 11.1% -17,039 8,576 $27.48 C 2 102,925 76,801 74.6% 0 0.0% 76,801 74.6% 74.6% 0 0 - Total 49 4,077,068 336,626 8.3% 21,858 0.5% 358,484 8.8% 8.4% -15,075 38,291 $31.30 NORTHEAST A 5 413,863 8,205 2.0% 0 0.0% 8,205 2.0% 10.7% 36,240 7,293 $24.94 B 19 1,308,518 219,382 16.8% 46,893 3.6% 266,275 20.3% 11.6% -114,718 3,568 $20.70 C 8 276,413 80,799 29.2% 2,690 1.0% 83,489 30.2% 29.2% -2,690 0 $22.54 Total 32 1,998,794 308,386 15.4% 49,583 2.5% 357,969 17.9% 13.8% -81,168 10,861 $21.35 NORTHWEST A 73 6,913,913 618,561 8.9% 152,970 2.2% 771,531 11.2% 11.0% -8,458 96,424 $35.35 B 98 4,343,849 527,704 12.1% 47,766 1.1% 575,470 13.2% 11.7% -69,010 83,820 $28.64 C 5 425,339 0 0.0% 0 0.0% 0 0.0% 0.2% 1,013 140 $22.78 Total 176 11,683,101 1,146,265 9.8% 200,736 1.7% 1,347,001 11.5% 10.9% -76,455 180,384 $33.01 ROUND ROCK A 4 341,764 3,388 1.0% 0 0.0% 3,388 1.0% 0.7% -1,150 7,358 $32.50 B 13 495,348 39,382 8.0% 10,411 2.1% 49,793 10.1% 8.3% -8,896 -1,912 $25.55 C 4 167,946 1,090 0.6% 0 0.0% 1,090 0.6% 0.0% 0 -1,090 $24.00 Total 21 1,005,058 43,860 4.4% 10,411 1.0% 54,271 5.4% 4.4% -10,046 4,356 $26.34 SOUTH A 5 395,493 31,111 7.9% 0 0.0% 31,111 7.9% 5.4% -9,705 25,021 $37.20 B 23 1,110,867 53,882 4.9% 1,695 0.2% 55,577 5.0% 4.5% -5,462 71,268 $29.29 C 11 625,872 43,039 6.9% 94 0.0% 43,133 6.9% 7.2% -1,206 1,499 $24.27 Total 39 2,132,232 128,032 6.0% 1,789 0.1% 129,821 6.1% 5.4% -16,373 97,788 $30.10 SOUTHEAST B 10 1,173,424 161,879 13.8% 0 0.0% 161,879 13.8% 14.0% 2,665 51,777 $23.16 C 4 161,933 1,000 0.6% 0 0.0% 1,000 0.6% 0.6% 0 36,283 $15.00 Total 14 1,335,357 162,879 12.2% 0 0.0% 162,879 12.2% 12.4% 2,665 88,060 $22.98 SOUTHWEST A 50 6,014,063 673,248 11.2% 217,425 3.6% 890,673 14.8% 14.1% -41,984 19,967 $40.33 B 70 2,689,853 199,952 7.4% 25,040 0.9% 224,992 8.4% 8.5% 2,970 22,944 $30.85 C 3 94,138 8,174 8.7% 596 0.6% 8,770 9.3% 9.3% 0 5,375 $27.33 Total 123 8,798,054 881,374 10.0% 243,061 2.8% 1,124,435 12.8% 12.3% -39,014 48,286 $38.03 WEST CENTRAL A 5 590,450 15,386 2.6% 3,447 0.6% 18,833 3.2% 3.2% -194 5,675 $43.54 B 3 85,148 0 0.0% 0 0.0% 0 0.0% 3.7% 3,152 800 $34.03 C 1 50,132 4,818 9.6% 0 0.0% 4,818 9.6% 11.0% 706 -1,032 - Total 9 725,730 20,204 2.8% 3,447 0.5% 23,651 3.3% 3.8% 3,664 5,443 $42.45
6 Austin Research & Forecast Report | Q1 2018 | Office | Colliers International Office Development Pipeline
3,456,491 square feet of office space was under construction during Q1 2018. The largest of the six buildings to deliver in Q1 was Oracle’s new 550,750 square foot campus at 2300 Cloud Way. Fourteen buildings were given the green light to begin construction this quarter.
PRE- EST. BUILDING NAME ADDRESS SUBMARKET SF DEVELOPER LEASED DELIVERY Fourth & Office 1800 E 4th St East 42,000 13.00% Capsa Ventures Apr-18 UpCycle 2416 E 6th St East 81,711 0.2% EverWest Real Estate Partners Apr-18 Springdale General 1023 Springdale Rd East 165,000 81.8% Unknown Apr-18 Summit II @ La Frontera 710 Hester's Crossing Rd Round Rock 95,000 0.0% Koontz Corporation Apr-18 Deepwood Medical Plaza 1545 Round Rock Ave Round Rock 11,000 54.8% Unknown Apr-18 3500 Ranch Road 620 N 3500 Ranch Road 620 N Southwest 80,000 0.0% St. Croix Capital Realty Advisors, Apr-18 LLC 1000 N Lamar Blvd 1000 N Lamar Blvd West Central 18,000 52.9% Unknown Apr-18 Building 1 120 S Lakeline Blvd Cedar Park 24,080 0.0% Unknown May-18 Mirabeau 2330 S Lamar Blvd South 34,169 94.32% Ellis Winstanley May-18 901 E 6th St 901 E 6th St East 129,444 0.50% Pegalo Properties Jun-18 Harrison Building 3205 Industrial Ter North/Domain 10,800 0.00% Unknown Jun-18 Building 4 1200 Sheldon Cv Northeast 32,000 100.0% Unknown Jun-18 Building 3 1200 Sheldon Cv Northeast 50,826 100.00% Unknown Jun-18 Buildings 2, 3, 4,, 5, 7, 9,10 13625 Ronald Regan Blvd Round Rock 36,650 27.4% Huffman Builders Jun-18 Preserve at 620 8201 N FM 620 Far Northwest 226,329 17.7% PacVentures, Inc. Jul-18 801 Barton Springs Rd 801 Barton Springs Rd South 90,500 100.0% Generational Commercial Jul-18 Properties Scottsdale East - Building G 1615 Scottsdale Rd Cedar Park 20,000 0.0% Unknown Sep-18 MoPac Centre 8611 N MoPac Expy Central 95,863 66.1% Eurus Capital Sep-18 Texas Mutual Insurance 2200 Aldrich East 270,000 99.20% Catellus Austin LLC Sep-18 Domain Tower 10721 Domain Dr North/Domain 308,000 100.00% HPI Real Estate Services & Sep-18 Investments Parmer 3.4 Parmer 3.4 Northeast 116,000 0.0% Karlin Real Estate Sep-18 Mesa Creek 801 E Old Settlers Blvd Round Rock 60,000 1.20% Halff Associates Sep-18 3503 Wild Cherry Dr 3503 Wild Cherry Dr Southwest 46,200 0.00% Unknown Sep-18 Wesco 8656 W State Highway 71 Southwest 19,584 0.0% Unknown Sep-18 Third + Shoal 208 Nueces St CBD 347,637 91.90% TIER REIT Oct-18 1217 W Slaughter Ln 1217 W Slaughter Ln South 48,078 86.5% Unknown Nov-18 Domain 11 3110 Esperanza Xing North/Domain 315,862 100.00% Endeavor Real Estate Group Dec-18 2010 S Lamar Blvd 2010 S Lamar Blvd South 78,275 13.9% Unknown Dec-18 The Hills Professional II 4615 Bee Caves Rd Southwest 29,500 1.7% Unknown Dec-18 Foundry 310 Comal St East 75,369 33.7% Cielo Realty Partners Feb-19 1801 E 6th St 1801 E 6th St East 134,367 22.5% Riverside Resources Mar-19 Building III 7717 Southwest Pky Southwest 20,858 18.5% Unknown Mar-19 SXSW Center 1400 Lavaca St CBD 140,000 44.5% Unknown Jun-19 Plaza Saltillo Office 901 E 5th East 150,000 0.0% Endeavor Real Estate Group Jun-19 Building 1 1100 S Congress Ave South 53,389 38.4% Unknown Oct-19
7 Austin Research & Forecast Report | Q1 2018 | Office | Colliers International 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 94.65% 112,061 $65.62 CalSTRS 600 Congress 600 Congress Ave CBD 503,951 1984 94.53% 112,876 $54.54 CalSTRS 301 Congress Ave 301 Congress Ave CBD 446,839 1985 90.39% 104,277 $62.06 PGIM, Inc. 816 Congress 816 Congress Ave CBD 433,024 1983 96.58% 38,249 $55.98 Cousins Properties San Jacinto Center 98 San Jacinto Blvd CBD 410,248 1987 94.84% 47,611 $64.79 Cousins Properties Chase Tower 221 W 6th St CBD 389,503 1972 98.31% 27,008 $61.90 Lincoln Property Company University of Texas System 210 W 7th St CBD 342,000 2017 90.41% 27,244 $59.50 Board of Regents of the University of Texas System 7700 W Parmer Ln - Bldg B 7700 W Parmer Ln Far Northwest 335,138 1999 98.40% 61,707 $40.27 Accesso Partners LLC Austin Centre 701 Brazos St CBD 326,335 1986 92.95% 70,937 $52.46 Sidra Real Estate, Inc. 7700 W Parmer Ln - Bldg C 7700 W Parmer Ln Far Northwest 287,948 1999 95.99% 11,540 $41.48 Accesso Partners LLC Note: Avail. SF includes direct and sublet space as well as any future available space listed. Source: CoStar Property
Q1 2018 Austin Office Highlights
FOR MORE INFORMATION Kaitlin Holm Research and Marketing Coordinator | Austin +1 512 539 3021 [email protected]
Colliers International | Market Colliers000 Address, International Suite # | Austin 111000 Congress Address, Avenue, Suite # Suite 750 +1 000 000 0000 Copyright © 20152018 Colliers International. Austin, Texas 78701 The information contained herein has been obtained from sources deemed reliable. While +1colliers.com/<