Research & Forecast Report AUSTIN | OFFICE Q3 2019
Construction continues as tech companies keep taking space in Austin
Kaitlin Holm Research and Marketing Coordinator | Austin
Boots On The Ground Commentary by Volney Campbell Future Forecast
Our “Boots on the Ground” viewpoint is the voice of our experts, who Historically, Austin’s major tech employers have included the likes have broken down the market data and compared it to what they are of Dell, AMD, Cirrus Logic, Samsung and Motorola; however, in the seeing for themselves. This is their take on what the numbers actually last few years the expansions from Google, Facebook, Amazon/ mean for the Austin office market. Whole Foods, Oracle, Apple and Indeed have changed the landscape in Austin for the foreseeable future. All six groups have placed In traveling around the country on business it seems if almost major bets on Austin totaling over 5,000,000 square feet of space everyone is at least familiar with Austin and many know a great leased indicating that this Austin run is not over and may not even deal about the city and its growth. So well published has our be in the final innings of the game. Yes, Austin will experience meteoric rise been from a small government city 30 years ago, to growing pains, but the investment in our city paints a pretty nice approaching tier one status as a technology hub, I guess I should picture of the future. Even if it will not be the same as it was. not be surprised. Recently, more questions are surfacing about where I see Austin in the future and is it due for a setback? By The Numbers - Austin’s Office Market It’s not hard to find locals that think the Austin they knew is already a relic of the past. Gone are the empty freeways at rush hour, and TOTAL INVENTORY TOTAL VACANCY their favorite music venue has recently closed, so to them Austin 59.2M SF 11.5% will never be the same. News Flash: every city evolves. They all change and morph as technology, jobs and the people that define the city change. Even though I wish traffic was better, I believe Q3 NET ABSORPTION YTD NET ABSORPTION Austin has a great future ahead. -1,117,048 SF -533,787 SF Demographers believe that Austin will top 3 million people in the TOTAL UNDER SMSA by 2027, led by enormous growth in cutting-edge S.T.E.M. TOTAL PRE-LEASED CONSTRUCTION jobs that will shape our country’s future. The unfounded fear 2.61M SF that somehow Austin is poised for a major setback seems hard 5.74M SF to imagine, despite large development plans currently underway. AVERAGE CBD CLASS A SUBURBAN CLASS A Employers go where they can find talent and if the talent is RATE/SF not there currently, can they attract it? According to the Austin $60.57 as tracked by Colliers $37.83 Chamber of Commerce, Austin has one of the highest percentages $35.38 of relocating employees whose company is moving to Austin, *Rates inclusive of estimated operating expenses. sometimes it is 70% or above, which is a rare number in their experience. Additionally, with approximately 145 people moving to Austin every day, clearly it can attract talent as well as relocate it.
Employers want a well-educated workforce, 49.8% of Austin’s workforce has a bachelor’s degree or higher and is a city with the pull to continue to attract similar talent in the future. Austin Office Overview
In the third quarter of 2019, Austin’s office market reported ANNUAL ABSORPTION, NEW SUPPLY, AND VACANCY 1,117,048 SF of negative net absorption. The majority of the negative absorption occurred in Class A buildings with a total of 1,250,402 Net Absorption New Supply Vacancy 1,200,000 18.0 SF of negative net absorption. Class B buildings in Austin posted 16.0 180,024 SF of positive net absorption, while Class C properties 1,000,000 14.0 posted 46,670 SF of negative net absorption. 800,000 12.0 Currently, 5,746,652 SF of office space is under construction and 600,000 10.0 2,613,396 SF of that is pre-leased. The fourth quarter of 2019 400,000 8.0 6.0 is expected to see 1,225,777 SF of deliveries and 824,576 SF of 200,000 that is pre-leased. One of the buildings set to deliver in the fourth 4.0 0 quarter of 2019 is Domain 12. The entire 320,102 SF building was 2.0 100% leased by Facebook in September 2018. -200,000 0.0
The Foundry in the East submarket was the largest building to deliver in the third quarter. This 75,369 SF building delivered in August and is 89.1% leased. One of the tenants that pre-leased at The Foundry is DPR Construction, leasing 28,000 square feet. The final quarter of 2019 is expected to see eighteen new buildings come online. Market Indicators Annual Quarterly Quarterly The citywide average rental rate decreased over the quarter from Relative to prior period Change Change Forecast* $35.72 per SF in Q2 2019 to $35.38 per SF in Q3 2019. Class A VACANCY rental rates in Austin’s CBD slid by 6.2% over the quarter to $49.47 per SF up from $52.78 per SF in the second quarter of 2019. The NET ABSORPTION overall suburban Class A rental rate also fell, from $37.97 per SF to NEW CONSTRUCTION $37.83 per SF, over the quarter. UNDER CONSTRUCTION In September, PwC and Urban Land Institute announced that Austin has been ranked the best market for real estate investment *Projected in 2020. Austin ranked first in front of Raleigh-Durham, Nashville, Charlotte, Boston and even beat out the current number one market, Dallas/Fort Worth. According to the study from PwC and the Urban Land Institute, Austin will be a solid “buy” market Summary Statistics for industrial, office and multifamily properties. The report also Austin Office Market Q3 2018 Q2 2019 Q3 2019 noted that the population growth rate of Austin is three times the Vacancy Rate 10.2% 9.3% 11.5% population growth rate of the United States. Net Absorption .395 .565 -1.11 Vacancy & Availability (Million Square Feet) New Construction Austin’s citywide vacancy rate increased from 9.3% in the second (Million Square Feet) .346 2.46 .781 quarter of 2019 to 11.5% in the third quarter of 2019. The Southeast Under Construction submarket’s Class A vacancy rate reported that more than 355,000 (Million Square Feet) 3.98 5.29 5.75 square feet became available in the third quarter, which is why they had the largest jump in vacancy moving from 7.6% in Q2 2019 to Class A Vacancy Rate CBD 6.0% 5.9% 6.2% 34.6% in Q3 2019. This could be caused in part by 40,000 square Suburban 11.0% 8.9% 14.8% feet being vacated at 5202 East Ben White Boulevard. Gross Asking Rents The largest decline in vacancy happened in the Class B Northeast Per Square Foot Per Year submarket, where the rate decreased from 28.4% to 23.1%, which Average $35.09 $35.72 $35.38 is due to over 57,000 square feet being taken off the market. CBD Class A $50.82 $52.78 $49.47 Overall suburban vacancy increased quarter over quarter from Suburban Class A $36.92 $37.97 $37.83 9.3% in Q2 2019 to 11.5% in Q3 2019, while the CBD’s vacancy rate rose marginally over the quarter from 5.7% to 5.8%.
2 Austin Research & Forecast Report | Q3 2019 | Office | Colliers International QUARTERLY ABSORPTION, NEW SUPPLY, AND VACANCY Job Growth & Unemployment Net Absorption New Supply Vacancy (not seasonally adjusted) 1,200,000 14.0% UNEMPLOYMENT 8/18 8/19 1,000,000 12.0% 3.1% 2.8% 800,000 10.0% AUSTIN
600,000 8.0% TEXAS 4.0% 3.7%
400,000 6.0% U.S. 3.9% 3.8%
200,000 4.0%
0 2.0% Annual # of Jobs JOB GROWTH Change Added -200,000 0.0% AUSTIN 2.1% 22.2K
Absorption & Demand TEXAS 2.3% 292.2K Austin’s office market posted 1,117,048 square feet of negative net U.S. 1.4% 2.1M absorption in Q3 2019. Only six submarkets experienced positive absorption over the quarter, including Cedar Park, East, Far Northwest, Northeast, South and Southwest. CBD vs. Suburban A majority of the negative net absorption over the quarter occurred in the Class A Northwest submarket, totaling 1,218,514 square feet CLASS A OFFICE VACANCY of negative absorption. In August, a 30,870 square foot sublease 16.0% space was put on the market at Riata Corporate Park 7 and was part of the reason the submarket’s net absorption number dropped 14.0% quite a bit. In all, 249,809 square feet became available in the Class 12.0% A Northwest submarket. 10.0%
The Southwest submarket helped bring the absorption number 8.0% closer to zero with 76,343 square feet of positive net absorption. The majority of the absorption in the Southwest submarket 6.0% happened in Class A space and can be partially attributed to Aeglea 4.0% BioTherapeutics, Inc moving into their 30,026 square feet space at Las Cimas III (805 Las Cimas Parkway). 2.0% 0.0% The Austin market recorded thirty-eight leases over 10,000 square feet signed in the third quarter with some big block leases leading the way. Austin Municipal Court signed their 131,362 square foot CBD Vacancy Suburban Vacancy lease at the Bergstrom Tech Center (6800 Burleson Road), while Abbott Laboratories inked their 130,152 square foot space in Seven CLASS A OFFICE RENTS Oaks West (8701 FM 2244). $50.00 Rental Rates $40.00 According to CoStar, our data provider, Austin’s citywide average rental rate decreased 0.95% over the quarter from $35.72 per SF $30.00 to $35.38 per SF.
The highest rates across the Austin office market in the third $20.00 quarter were in East Class A buildings where net rental rates averaged $50.02 per SF. Rental rates were also high in the CBD $10.00 and South submarkets where Class A rental rates reached $49.47 per SF and $42.96 per SF, respectively. $0.00
Citywide Class B rental rates rose slightly in Q3 2019 to $31.54 per SF from $31.23 per SF in Q2 2019. CBD Class B rental rates CBD Rents Suburban Rents increased by 2.45% over the quarter from $48.15 per SF to $49.33 per SF in Q3 2019.
3 Austin Research & Forecast Report | Q3 2019 | Office | Colliers International Leasing Activity
Austin’s office market recorded 1,064,121 SF of leasing activity in Q3 2019. Major transactions this quarter included Austin Municipal Court leasing 131,362 SF at Bergstrom Tech Center, Building 312 (6800 Burleson Road) and Abbott Laboratories taking all 130,152 SF at Seven Oaks West (8701 FM 2244), which is set to deliver in December of 2020.
Q3 2019 Top Office Lease Transactions BUILDING ADDRESS SUBMARKET SF TENANT LEASE DATE 6800 Burleson Rd Southeast 131,362 Austin Municipal Court Jul-19 8701 FM 2244 Southwest 130,152 Abbott Laboratories Jul-19 11815 Alterra Pky North/Domain 107,377 Amazon Sep-19 2433 Ridgepoint Dr Northeast 62,299 Unknown Sep-19 10900 Stonelake Blvd Northwest 42,429 WeWork Aug-19 98 San Jacinto Blvd CBD 40,207 Unknown2 Aug-19 5918 Courtyard Dr W Northwest 27,887 Brigham Resources Jul-19 13620 Ranch Road 620 N Cedar Park 27,326 Unknown Sep-19 1703 W 5th St West Central 27,155 Erickson2 Aug-19 1501 S Mo Pac Expy Southwest 25,369 Germer PLLC Aug-19 3708 Woodbury Dr South 24,982 Unknown Sep-19 401 Congress Ave CBD 23,824 PIMCO Jul-19 11305 Four Points Dr Far Northwest 21,765 Unknown Aug-19 206 E 9th St CBD 20,939 Shiseido Aug-19 5301 Southwest Pky Southwest 20,593 Kony, Inc Jul-19 13640 Briarwick Dr Far Northwest 20,578 Unknown2 Sep-19 11501 Domain Dr North/Domain 20,041 Unknown2 Sep-19 4301 Westbank Dr Southwest 19,047 Entercom Communications Corp. Jul-19 3300 Duval Rd Northwest 17,002 Archer Systems1 Aug-19 1 Renewal 2 Sublease Sales Activity
Austin’s office investment sales activity included eleven building transactions, with one portfolio transaction, which consisted of buildings I -V at the Campus at Arboretum. In August, CIM Group purchased Chase Tower (221 West 6th Street) located in the CBD; the building was 97% leased at the time of the purchase. Domain Tower was the most expensive purchase of the quarter with an approximate sale price of $128,900,000 or $415.96 per square foot. iStar Financial purchased the 309,883 square foot building in August.
Q3 2019 Significant Sales Transactions – (100,000 SF or greater)
BUILDING ADDRESS SUBMARKET RBA (SF) YEAR BUILT BUYER SELLER SALE PRICE $/SF CLOSED
Vanderbilt Partners, Starwood Property 10415-10431 Morado Cir1 Northwest 318,217 1993 True North Mgmt Undisclosed N/A Jul-19 Trust Group Lincoln Property Co, 221 W 6th St CBD 389,503 1974 CIM Group Undisclosed N/A Aug-19 Goldman Sachs Riverside Resources 1801 E 6th St2 East 135,000 2018 AEW Capital $44,400,000.00 $328.89 Aug-19 Corp 1701 Directors Blvd Southeast 154,939 1984 OakPoint SA Pension Trust Undisclosed N/A Aug-19 6405 Bridge Point Pkwy2 Northwest 131,200 1985 PM Realty Group John Roiko $34,500,000.00 $262.96 Aug-19 Stonelake Cap Prtnrs, 10721 Domain Dr2 North/Domain 309,883 2018 iStar Financial $128,900,000.00 $415.96 Aug-19 HPI Real Estate 901 E 6th St East 129,444 2018 Clarion Partners Lionstone Investments Undisclosed N/A Sep-19 Sources: CoStar and Real Capital Analytics 1 Part of a portfolio 2 Approximate Sale Price
4 Austin Research & Forecast Report | Q3 2019 | Office | Colliers International AustinThis is placeholder Office text.Market Place Summary your text here.(CBD, Suburban, & Overall)
SUBLEASE NET ABSORPTION RENTAL INVENTORY DIRECT VACANCY VACANCY VACANCY RATE (%) VACANCY (SF) RATE
# OF RATE RATE TOTAL AVG ($/ CLASS TOTAL (SF) (SF) (SF) Q3-2019 Q2-2019 Q3-2019 Q2-2019 BLDGS (%) (%) (SF) SF) CBD A 32 8,149,245 439,542 5.4% 67,849 0.8% 507,391 6.2% 5.9% -23,792 4,091 $49.47 B 35 2,867,245 119,424 4.2% 40,869 1.4% 160,293 5.6% 5.2% -10,714 -20,588 $49.33 C 10 631,980 9,702 1.5% 0 0.0% 9,702 1.5% 4.5% 18,596 3,465 $26.38 Total 77 11,648,470 568,668 4.9% 108,718 0.9% 677,386 5.8% 5.7% -15,910 -13,032 $48.83 SUBURBAN A 202 23,497,834 3,191,696 13.6% 290,786 1.2% 3,482,482 14.8% 8.9% -1,226,610 426,209 $37.83 B 411 21,250,310 2,023,694 9.5% 323,373 1.5% 2,347,067 11.0% 12.0% 190,738 170,077 $30.19 C 61 2,717,065 276,402 10.2% 3,668 0.1% 280,070 10.3% 7.9% -65,266 -17,416 $27.90 Total 674 47,465,209 5,491,792 11.6% 617,827 1.3% 6,109,619 12.9% 10.2% -1,101,138 578,870 $33.77 OVERALL A 234 31,647,079 3,631,238 11.5% 358,635 1.1% 3,989,873 12.6% 8.1% -1,250,402 430,300 $39.50 B 446 24,117,555 2,143,118 8.9% 364,242 1.5% 2,507,360 10.4% 11.2% 180,024 149,489 $31.54 C 71 3,349,045 286,104 8.5% 3,668 0.1% 289,772 8.7% 7.3% -46,670 -13,951 $27.80 Total 751 59,113,679 6,060,460 10.3% 726,545 1.2% 6,787,005 11.5% 9.3% -1,117,048 565,838 $35.38
Austin Suburban Office Market Summary
DIRECT SUBLEASE RENTAL INVENTORY VACANCY VACANCY RATE (%) NET ABSORPTION (SF) VACANCY VACANCY RATE
# OF RATE RATE TOTAL AVG ($/ CLASS TOTAL (SF) (SF) (SF) Q3-2019 Q2-2019 Q3-2019 Q2-2019 BLDGS (%) (%) (SF) SF) CEDAR PARK
A 6 555,222 69,515 12.5% 0 0.0% 69,515 12.5% 12.5% 0 19,376 $32.51 B 8 348,822 20,563 5.9% 9,405 2.7% 29,968 8.6% 8.6% 36 1,859 $27.10 ChartTotal Title–One14 Line 904,044 90,078 10.0% 9,405 1.0% 99,483 11.0% 11.0% 36 21,235 $31.02 CENTRAL . Chart Title A 6 640,288 21,230 3.3% 19,891 3.1% 41,121 6.4% 5.8% -4,188 -856 $38.91 B SUBHEAD40 1 2,166,333 240,353 11.1%SUBHEAD 111,773 0.5% 252,126 SUBHEAD11.6% 1 11.0% -14,885 SUBHEAD27,157 1 $31.63 CBody 14 823,232 105,659 12.8% 900 0.1% 106,559 12.9% 4.9% -65,846 10,557 $30.98 Total 60 3,629,853 367,242 10.1% 32,564 0.9% 399,806 11.0% 8.7% -84,919 36,858 $31.77 EAST A 3 222,579 5,137 2.3% 0 0.0% 5,137 2.3% 7.4% 11,388 43 $50.02 B 18 1,113,820 98,349 8.8% 0 0.0% 98,349 8.8% 11.1% 25,523 -7,385 $36.07 C 7 271,235 17,417 6.4% 2,768 1.0% 20,185 7.4% 5.2% -6,118 9,319 $37.78 Total 28 1,607,634 120,903 7.5% 2,768 0.2% 123,671 7.7% 9.6% 30,793 1,977 $37.70 FAR NORTHEAST B 3 94,996 21,046 22.2% 350 0.4% 21,396 22.5% 19.7% -2,666 640 $26.03 Total 3 94,996 21,046 22.2% 350 0.4% 21,396 22.5% 19.7% -2,666 640 $26.03 FAR NORTHWEST A 13 1,889,243 237,980 12.6% 20,578 1.1% 258,558 13.7% 14.5% 15,969 66,898 $33.76 B 12 775,336 59,353 7.7% 2,315 0.3% 61,668 8.0% 8.4% 3,506 5,167 $27.40 C 2 77,864 1,180 1.5% 0 0.0% 1,180 1.5% 1.5% 0 0 $22.48 Total 27 2,742,443 298,513 10.9% 22,893 0.8% 321,406 11.7% 12.4% 19,475 72,065 $32.75
5 Austin Research & Forecast Report | Q3 2019 | Office | Colliers International Austin Suburban Office Market Summary - Continued
SUBLEASE NET ABSORPTION RENTAL INVENTORY DIRECT VACANCY VACANCY VACANCY RATE (%) VACANCY (SF) RATE
# OF RATE RATE TOTAL AVG ($/ CLASS TOTAL (SF) (SF) (SF) Q3-2019 Q2-2019 Q3-2019 Q2-2019 BLDGS (%) (%) (SF) SF) NORTH/DOMAIN A 18 2,823,878 88,872 3.1% 20,147 0.7% 109,019 3.9% 2.3% -43,953 25,743 $39.11 B 46 2,688,633 262,335 9.8% 37,766 1.4% 300,101 11.2% 12.0% 22,250 26,081 $30.87 C 1 24,759 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 - Total 65 5,537,270 351,207 6.3% 57,913 1.0% 409,120 7.4% 7.0% -21,703 51,824 $33.92 NORTHEAST A 4 353,065 2,519 0.7% 0 0.0% 2,519 0.7% 1.5% 2,710 100 $26.34 B 20 1,296,663 125,456 9.7% 174,535 13.5% 299,991 23.1% 28.4% 68,130 -74,650 $22.83 C 6 226,421 78,799 34.8% 0 0.0% 78,799 34.8% 34.8% 0 0 $22.70 Total 30 1,876,149 206,774 11.0% 174,535 9.3% 381,309 20.3% 24.1% 70,840 -74,550 $22.88 NORTHWEST A 71 7,917,748 1,933,873 24.4% 87,273 1.1% 2,021,146 25.5% 10.1% -1,218,514 158,267 $37.42 B 110 5,016,705 483,143 9.6% 47,368 0.9% 530,511 10.6% 12.6% 102,530 37,452 $31.28 C 5 115,405 2,460 2.1% 0 0.0% 2,460 2.1% 5.3% 3,642 -4,247 $28.51 Total 186 13,049,858 2,419,476 18.5% 134,641 1.0% 2,554,117 19.6% 11.0% -1,112,342 191,472 $34.44 ROUND ROCK A 10 886,438 144,722 16.3% 7,597 0.9% 152,319 17.2% 17.1% -975 -3,634 $33.31 B 19 802,128 49,652 6.2% 5,759 0.7% 55,411 6.9% 5.7% -9,414 6,052 $26.68 C 6 219,274 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $24.00 Total 35 1,907,840 194,374 10.2% 13,356 0.7% 207,730 10.9% 10.3% -10,389 2,418 $31.50 SOUTH A 6 485,993 4,695 1.0% 0 0.0% 4,695 1.0% 3.9% 14,057 4,601 $46.17 B 28 1,277,893 66,836 5.2% 0 0.0% 66,836 5.2% 5.3% 645 603 $33.13 C 11 629,864 15,663 2.5% 0 0.0% 15,663 2.5% 2.9% 2,428 3,414 $25.83 Total 45 2,393,750 87,194 3.6% 0 0.0% 87,194 3.6% 4.4% 17,130 8,618 $36.44 SOUTHEAST A 4 623,789 215,551 34.6% 0 0.0% 215,551 34.6% 7.6% -40,000 1,400 $31.03 B 18 1,973,805 257,626 13.1% 0 0.0% 257,626 13.1% 12.7% -7,236 130,705 $24.04 C 5 185,741 44,391 23.9% 0 0.0% 44,391 23.9% 24.2% 511 -36,459 $24.21 Total 27 2,783,335 517,568 18.6% 0 0.0% 517,568 18.6% 12.6% -46,725 95,646 $26.95 SOUTHWEST A 56 6,509,141 446,552 6.9% 98,685 1.5% 545,237 8.4% 8.8% 66,876 150,800 $42.96 B 80 3,140,250 308,252 9.8% 31,332 1.0% 339,584 10.8% 11.1% 9,467 13,934 $33.17 C 3 93,138 6,278 6.7% 0 0.0% 6,278 6.7% 6.7% 0 0 $30.36 Total 139 9,742,529 761,082 7.8% 130,017 1.3% 891,099 9.1% 9.6% 76,343 164,734 $39.04 WEST CENTRAL A 5 590,450 21,050 3.6% 36,615 6.2% 57,665 9.8% 4.7% -29,980 3,471 $42.95 B 9 554,926 30,730 5.5% 2950 0.5% 33,680 6.1% 5.9% -1,148 2,462 $37.50 C 1 50,132 4,559 9.1% 0 0.0% 4,559 9.1% 9.3% 117 0 - Total 15 1,195,508 56,339 4.7% 39,565 3.3% 95,904 8.0% 5.4% -31,011 5,933 $40.29
6 Austin Research & Forecast Report | Q3 2019 | Office | Colliers International Office Development Pipeline
5,746,652 square feet of office space was under construction during Q3 2019. Three buildings delivered in Q3, with the largest being Foundry (310 Comal Street). This 75,369 square foot building was 92.1% leased at delivery and 27,775 SF of that will be occupied by DPR Construction. 45% of all space under construction is already pre-leased and over a million square feet is set to deliver before 2020.
PRE- EST. BUILDING NAME ADDRESS SUBMARKET SF DEVELOPER LEASED DELIVERY Offices At Saltillo 901 E 5th St East 150,000 100.0% Endeavor Real Estate Group Oct-19 Domain Place 10727 Domain Dr North/Domain 38,638 90.6% Stonelake Capital Partners Oct-19 2050 Doublecreek Dr 2050 Doublecreek Dr Round Rock 16,000 0.0% Unknown Oct-19 Davenport 360 6001 Bold Ruler Way Southwest 35,551 50.1% Unknown Oct-19 Wesco 8656 W State Highway 71 Southwest 21,835 51.2% Unknown Oct-19 CityView 1007 S Congress Ave South 50,000 100.0% Turnbridge Equities Nov-19 Building 3 1009 S Congress Ave South 30,468 38.0% Endeavor Real Estate Group Nov-19 Sunset Ridge at Southwest Parkway 8413 Southwest Pky Southwest 197,300 0.0% Unknown Nov-19 1320 Arrow Point Dr - 1 1320 Arrow Point Dr Cedar Park 16,300 0.0% Unknown Dec-19 1320 Arrow Point Dr - 2 1320 Arrow Point Dr Cedar Park 15,300 0.0% Unknown Dec-19 1320 Arrow Point Dr - 3 1320 Arrow Point Dr Cedar Park 12,690 0.0% Unknown Dec-19 WestPark Professional- Building 4 120 S Lakeline Blvd Cedar Park 11,182 0.0% Unknown Dec-19 WestPark Professional Building 3 120 S Lakeline Blvd Cedar Park 11,182 0.0% Unknown Dec-19 WestPark Professional Building 2 120 S Lakeline Blvd Cedar Park 10,902 0.0% Unknown Dec-19 East6 2010 E 6th St East 115,000 100.0% AQUILA Commercial Dec-19 Domain 12 11800 Alterra Pky North/Domain 320,102 100.0% TIER REIT, Inc. Dec-19 Junior League of Austin 5334 Bluffstone Ln Northwest 48,000 100.0% Unknown Dec-19 Rollingwood Town Center Phase III 2500 Bee Caves Rd Southwest 128,000 51.5% Endeavor Real Estate Group Dec-19 618 Tillery St 618 Tillery St East 187,155 0.7% Unknown Jan-20 Bldg 3 1601 E Pflugerville Pky Far Northeast 38,500 0.0% Unknown Jan-20 Domain 10 11815 Alterra Pky North/Domain 299,673 100.0% Endeavor Real Estate Group Jan-20 Domain W4 11501 Rock Rose Blvd North/Domain 16,327 65.0% Endeavor Real Estate Group Jan-20 Parmer 4.1 Parmer 4.1 Northeast 196,000 3.6% Trammell Crow Company Jan-20 Parmer Sector 4.2 Parmer 4.2 Northeast 118,000 4.5% Trammell Crow Company Jan-20 Creekside 4001 W Parmer Ln Northwest 35,056 77.3% Unknown Jan-20 The Grove 1 4301 Bull Creek Rd West Central 134,114 0.0% Castletop Capital Jan-20 Highland 3 523 E Highland Blvd Central 250,000 100.0% Unknown Feb-20 Paloma Ridge Building C 13620 Ranch Road 620 N Far Northwest 165,714 16.5% Unknown Feb-20 The Grove 2 2117 Perseverance Dr West Central 134,114 65.0% Castletop Capital Feb-20 1141 Shady Ln 1141 Shady Ln East 64,674 18.2% Bercy Chen Studio LP Mar-20 10029 Manchaca Rd 10029 Manchaca Rd South 30,000 0.0% Unknown Mar-20 Building E 3601 S Congress Ave South 42,500 0.0% Unknown Apr-20 Building 3 9225 Bee Caves Rd Southwest 30,077 100.0% Unknown Apr-20 Building III 7717 Southwest Pky Southwest 20,858 100.0% Unknown Apr-20 Creekside at the Hills 4609 Bee Caves Rd Southwest 31,460 58.5% Bogle Family Realty LLLP May-20 Bouldin Creek 2043 S Lamar Blvd South 161,310 11.7% Unknown Jun-20 Foundry II 1600 E 4th St East 161,436 3.1% Cielo Property Group Jul-20 Seven Oaks 8701 FM 2244 Southwest 153,405 0.0% Unknown Jul-20 1221 S Congress Ave 1221 S Congress Ave South 103,000 21.0% Endeavor Real Estate Group Aug-20 405 Colorado 405 Colorado St CBD 197,056 38.6% Brandywine Realty Trust Oct-20 826 Houston St 826 Houston St Central 22,241 0.0% Central Austin Management Group Oct-20 The Overlook at Lakeway 2909 Flintrock Trce Southwest 37,432 3.2% Unknown Nov-20
7 Austin Research & Forecast Report | Q3 2019 | 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) San Jacinto Center 98 San Jacinto Blvd CBD 410,248 1987 99.00 94,640 $68.61 Cousins Properties Incorporated University of Texas System 210 W 7th St CBD 342,000 2017 98.55 24,227 $61.48 Board of Regents of The University of Texas System 7700 Parmer B 7700 W Parmer Ln Far Northwest 335,138 1999 98.40 5,373 $40.77 Accesso Partners Chase Tower 221 W 6th St CBD 389,503 1974 96.96 11,858 $67.03 CIM Group LP Four Barton Skyway 1301 S Mo Pac Expy S Southwest 222,580 2001 96.90 59,681 $48.37 Brandywine Realty Trust Austin Centre 701 Brazos St CBD 326,335 1986 96.74 10,652 $58.41 Sidra Real Estate, Inc. 7700 Parmer C 7700 W Parmer Ln Far Northwest 300,274 1999 96.64 10,101 $41.98 Accesso Partners One Eleven Congress 111 Congress Ave CBD 518,385 1985 95.87 74,832 $69.19 Cousins Properties Incorporated University Park 3300 N Interstate 35 Central 206,657 2009 95.68 48,334 $47.53 Hermes Real Estate Investment Management Ltd 301 Congress 301 Congress Ave CBD 446,839 1985 93.17 117,672 $67.03 PGIM, Inc. Note: Avail. SF includes direct and sublet space as well as any future available space listed. Source: CoStar Property
Q3 2019 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 © 20152019 Colliers International. Austin, Texas 78701 The information contained herein has been obtained from sources deemed reliable. While +1colliers.com/<
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I P N REPRESENTATION
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A Colliers professionals think di erently, share great ideas and o er thoughtful and & I C M & E E C U H N P innovative advice to accelerate the success of its clients. Colliers has been ranked R C E S L M E R G I T A A A E L N L I S L F A E E E G S T among the top 100 global outsourcing rms by the International Association of A R T N E A T I M M T E L E E K N I I N R IO L T A T A Y A T Outsourcing Professionals for 13 consecutive years, more than any other real estate M C S O E E L R R V L services rm. Colliers is ranked the number one property manager in the world by R AN T N IC EP DLO NAN IO E RES RD TE TAT E S ENT SEN IC ATION REPRE F Commercial Property Executive for two years in a row. OF M A RIN SE A, L OUR EISURE & GOLF C COMMERCIAL REAL ESTATE SECTORS REPRESENTED L E Y Our philosophy I C A I TE L AN D T F
O revolves around the fact L E F TRIA L AMI L H R F S O I THCAR E T L that the best $127B TRANSACTION VALUE A E IND U MU L H possible results come from linking our global enterprise with local advisors who 2B understand your SF UNDER MANAGEMENT business, your market, and how to integrate real estate $3.3B into a successful IN REVENUE business strategy.
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