construction continues as tech companies keep taking space ...€¦ · austin research &...

Research & Forecast Report

AUSTIN | OFFICEQ3 2019

Kaitlin Holm Research and Marketing Coordinator | Austin

Boots On The Ground Commentary by Volney Campbell

Our “Boots on the Ground” viewpoint is the voice of our experts, who have broken down the market data and compared it to what they are seeing for themselves. This is their take on what the numbers actually mean for the Austin office market.

In traveling around the country on business it seems if almost everyone is at least familiar with Austin and many know a great deal about the city and its growth. So well published has our meteoric rise been from a small government city 30 years ago, to approaching tier one status as a technology hub, I guess I should not be surprised. Recently, more questions are surfacing about where I see Austin in the future and is it due for a setback?

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 their favorite music venue has recently closed, so to them Austin 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 Austin has a great future ahead.

Demographers believe that Austin will top 3 million people in the SMSA by 2027, led by enormous growth in cutting-edge S.T.E.M. jobs that will shape our country’s future. The unfounded fear that somehow Austin is poised for a major setback seems hard to imagine, despite large development plans currently underway. Employers go where they can find talent and if the talent is not there currently, can they attract it? According to the Austin Chamber of Commerce, Austin has one of the highest percentages of relocating employees whose company is moving to Austin, 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.

Construction continues as tech companies keep taking space in Austin

Future Forecast

Historically, Austin’s major tech employers have included the likes of Dell, AMD, Cirrus Logic, Samsung and Motorola; however, in the last few years the expansions from Google, Facebook, Amazon/Whole Foods, Oracle, Apple and Indeed have changed the landscape in Austin for the foreseeable future. All six groups have placed major bets on Austin totaling over 5,000,000 square feet of space leased indicating that this Austin run is not over and may not even be in the final innings of the game. Yes, Austin will experience growing pains, but the investment in our city paints a pretty nice picture of the future. Even if it will not be the same as it was.

By The Numbers - Austin’s Office Market

TOTAL INVENTORY

59.2M SFTOTAL VACANCY

11.5%

Q3 NET ABSORPTION

-1,117,048 SFYTD NET ABSORPTION

-533,787 SFTOTAL UNDER

CONSTRUCTION

5.74M SFTOTAL PRE-LEASED

2.61M SFCBD CLASS A

$60.57as tracked by Colliers

SUBURBAN CLASS A

$37.83 AVERAGE RATE/SF

$35.38*Rates inclusive of estimated operating expenses.

2

Austin Office OverviewIn the third quarter of 2019, Austin’s office market reported 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 SF of negative net absorption. Class B buildings in Austin posted 180,024 SF of positive net absorption, while Class C properties posted 46,670 SF of negative net absorption.

Currently, 5,746,652 SF of office space is under construction and 2,613,396 SF of that is pre-leased. The fourth quarter of 2019 is expected to see 1,225,777 SF of deliveries and 824,576 SF of that is pre-leased. One of the buildings set to deliver in the fourth quarter of 2019 is Domain 12. The entire 320,102 SF building was 100% leased by Facebook in September 2018.

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.

The citywide average rental rate decreased over the quarter from $35.72 per SF in Q2 2019 to $35.38 per SF in Q3 2019. Class A 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 overall suburban Class A rental rate also fell, from $37.97 per SF to $37.83 per SF, over the quarter.

In September, PwC and Urban Land Institute announced that Austin has been ranked the best market for real estate investment 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 for industrial, office and multifamily properties. The report also noted that the population growth rate of Austin is three times the population growth rate of the United States.

Vacancy & Availability

Austin’s citywide vacancy rate increased from 9.3% in the second quarter of 2019 to 11.5% in the third quarter of 2019. The Southeast submarket’s Class A vacancy rate reported that more than 355,000 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 34.6% in Q3 2019. This could be caused in part by 40,000 square feet being vacated at 5202 East Ben White Boulevard.

The largest decline in vacancy happened in the Class B Northeast submarket, where the rate decreased from 28.4% to 23.1%, which is due to over 57,000 square feet being taken off the market.

Overall suburban vacancy increased quarter over quarter from 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

Market IndicatorsRelative to prior period

AnnualChange

Quarterly Change

Quarterly Forecast*

VACANCY

NET ABSORPTION

NEW CONSTRUCTION

UNDER CONSTRUCTION

*Projected

Summary Statistics Austin Office Market Q3 2018 Q2 2019 Q3 2019

Vacancy Rate 10.2% 9.3% 11.5%

Net Absorption (Million Square Feet) .395 .565 -1.11

New Construction (Million Square Feet) .346 2.46 .781

Under Construction (Million Square Feet) 3.98 5.29 5.75

Class A Vacancy Rate CBD Suburban

6.0%11.0%

5.9%8.9%

6.2%14.8%

Gross Asking Rents Per Square Foot Per Year

Average $35.09 $35.72 $35.38

CBD Class A $50.82 $52.78 $49.47

Suburban Class A $36.92 $37.97 $37.83

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Net Absorption New Supply Vacancy

ANNUAL ABSORPTION, NEW SUPPLY, AND VACANCY

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

CBD Rents Suburban Rents

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

CBD Vacancy Suburban Vacancy

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Net Absorption New Supply Vacancy

Absorption & DemandAustin’s office market posted 1,117,048 square feet of negative net absorption in Q3 2019. Only six submarkets experienced positive absorption over the quarter, including Cedar Park, East, Far Northwest, Northeast, South and Southwest.

A majority of the negative net absorption over the quarter occurred in the Class A Northwest submarket, totaling 1,218,514 square feet of negative absorption. In August, a 30,870 square foot sublease space was put on the market at Riata Corporate Park 7 and was part of the reason the submarket’s net absorption number dropped quite a bit. In all, 249,809 square feet became available in the Class A Northwest submarket.

The Southwest submarket helped bring the absorption number closer to zero with 76,343 square feet of positive net absorption. The majority of the absorption in the Southwest submarket happened in Class A space and can be partially attributed to Aeglea BioTherapeutics, Inc moving into their 30,026 square feet space at Las Cimas III (805 Las Cimas Parkway).

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 lease at the Bergstrom Tech Center (6800 Burleson Road), while Abbott Laboratories inked their 130,152 square foot space in Seven Oaks West (8701 FM 2244).

Rental RatesAccording to CoStar, our data provider, Austin’s citywide average rental rate decreased 0.95% over the quarter from $35.72 per SF to $35.38 per SF.

The highest rates across the Austin office market in the third quarter were in East Class A buildings where net rental rates averaged $50.02 per SF. Rental rates were also high in the CBD and South submarkets where Class A rental rates reached $49.47 per SF and $42.96 per SF, respectively.

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 increased by 2.45% over the quarter from $48.15 per SF to $49.33 per SF in Q3 2019.


UNEMPLOYMENT 8/18 8/19

AUSTIN 3.1% 2.8%

TEXAS 4.0% 3.7%

U.S. 3.9% 3.8%

JOB GROWTHAnnual Change

# of Jobs Added

AUSTIN 2.1% 22.2K

TEXAS 2.3% 292.2K

U.S. 1.4% 2.1M

CBD vs. SuburbanCLASS A OFFICE VACANCY

CLASS A OFFICE RENTS

Job Growth & Unemployment(not seasonally adjusted)

QUARTERLY ABSORPTION, NEW SUPPLY, AND VACANCY


Q3 2019 Top Office Lease TransactionsBUILDING 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

Leasing ActivityAustin’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.

1 Renewal 2 Sublease

Q3 2019 Significant Sales Transactions – (100,000 SF or greater)

BUILDING ADDRESS SUBMARKET RBA (SF) YEAR BUILT BUYER SELLER SALE PRICE $/SF CLOSED

10415-10431 Morado Cir1 Northwest 318,217 1993 Starwood Property Trust

Vanderbilt Partners, True North Mgmt Group

Undisclosed N/A Jul-19

221 W 6th St CBD 389,503 1974 CIM Group Lincoln Property Co, Goldman Sachs Undisclosed N/A Aug-19

1801 E 6th St2 East 135,000 2018 AEW Capital Riverside Resources Corp $44,400,000.00 $328.89 Aug-19

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

10721 Domain Dr2 North/Domain 309,883 2018 iStar Financial Stonelake Cap Prtnrs, HPI Real Estate $128,900,000.00 $415.96 Aug-19

901 E 6th St East 129,444 2018 Clarion Partners Lionstone Investments Undisclosed N/A Sep-19

Sales ActivityAustin’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.

Sources: CoStar and Real Capital Analytics1 Part of a portfolio 2 Approximate Sale Price


This is placeholder text. Place your text here.

Chart Title–One Line

Chart TitleSUBHEAD 1 SUBHEAD 1 SUBHEAD 1 SUBHEAD 1

Body

INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY VACANCY RATE (%) NET ABSORPTION

(SF)RENTAL

RATE

CLASS # OF BLDGS TOTAL (SF) (SF) RATE

(%) (SF) RATE (%)

TOTAL (SF) Q3-2019 Q2-2019 Q3-2019 Q2-2019 AVG ($/

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

INVENTORY DIRECT VACANCY

SUBLEASE VACANCY VACANCY VACANCY RATE (%) NET ABSORPTION (SF) RENTAL

RATE


(%) (SF) RATE (%)

TOTAL (SF) Q3-2019 Q2-2019 Q3-2019 Q2-2019 AVG ($/

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

Total 14 904,044 90,078 10.0% 9,405 1.0% 99,483 11.0% 11.0% 36 21,235 $31.02

CENTRAL .

A 6 640,288 21,230 3.3% 19,891 3.1% 41,121 6.4% 5.8% -4,188 -856 $38.91

B 40 2,166,333 240,353 11.1% 11,773 0.5% 252,126 11.6% 11.0% -14,885 27,157 $31.63

C 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

Austin Suburban Office Market Summary

Austin Office Market Summary (CBD, Suburban, & Overall)


Austin Suburban Office Market Summary - Continued

INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY VACANCY RATE (%) NET ABSORPTION

(SF)RENTAL

RATE


(%) (SF) RATE (%)

TOTAL (SF) Q3-2019 Q2-2019 Q3-2019 Q2-2019 AVG ($/

SF)

NORTH/DOMAINA 18 2,823,878 88,872 3.1% 20,147 0.7% 109,019 3.9% 2.3% -43,953 25,743 $39.11B 46 2,688,633 262,335 9.8% 37,766 1.4% 300,101 11.2% 12.0% 22,250 26,081 $30.87C 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 $33.92NORTHEASTA 4 353,065 2,519 0.7% 0 0.0% 2,519 0.7% 1.5% 2,710 100 $26.34B 20 1,296,663 125,456 9.7% 174,535 13.5% 299,991 23.1% 28.4% 68,130 -74,650 $22.83C 6 226,421 78,799 34.8% 0 0.0% 78,799 34.8% 34.8% 0 0 $22.70Total 30 1,876,149 206,774 11.0% 174,535 9.3% 381,309 20.3% 24.1% 70,840 -74,550 $22.88NORTHWESTA 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 $37.42B 110 5,016,705 483,143 9.6% 47,368 0.9% 530,511 10.6% 12.6% 102,530 37,452 $31.28C 5 115,405 2,460 2.1% 0 0.0% 2,460 2.1% 5.3% 3,642 -4,247 $28.51Total 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 $34.44ROUND ROCKA 10 886,438 144,722 16.3% 7,597 0.9% 152,319 17.2% 17.1% -975 -3,634 $33.31B 19 802,128 49,652 6.2% 5,759 0.7% 55,411 6.9% 5.7% -9,414 6,052 $26.68C 6 219,274 0 0.0% 0 0.0% 0 0.0% 0.0% 0 0 $24.00Total 35 1,907,840 194,374 10.2% 13,356 0.7% 207,730 10.9% 10.3% -10,389 2,418 $31.50SOUTHA 6 485,993 4,695 1.0% 0 0.0% 4,695 1.0% 3.9% 14,057 4,601 $46.17B 28 1,277,893 66,836 5.2% 0 0.0% 66,836 5.2% 5.3% 645 603 $33.13C 11 629,864 15,663 2.5% 0 0.0% 15,663 2.5% 2.9% 2,428 3,414 $25.83Total 45 2,393,750 87,194 3.6% 0 0.0% 87,194 3.6% 4.4% 17,130 8,618 $36.44SOUTHEAST

A 4 623,789 215,551 34.6% 0 0.0% 215,551 34.6% 7.6% -40,000 1,400 $31.03B 18 1,973,805 257,626 13.1% 0 0.0% 257,626 13.1% 12.7% -7,236 130,705 $24.04C 5 185,741 44,391 23.9% 0 0.0% 44,391 23.9% 24.2% 511 -36,459 $24.21Total 27 2,783,335 517,568 18.6% 0 0.0% 517,568 18.6% 12.6% -46,725 95,646 $26.95SOUTHWESTA 56 6,509,141 446,552 6.9% 98,685 1.5% 545,237 8.4% 8.8% 66,876 150,800 $42.96B 80 3,140,250 308,252 9.8% 31,332 1.0% 339,584 10.8% 11.1% 9,467 13,934 $33.17C 3 93,138 6,278 6.7% 0 0.0% 6,278 6.7% 6.7% 0 0 $30.36Total 139 9,742,529 761,082 7.8% 130,017 1.3% 891,099 9.1% 9.6% 76,343 164,734 $39.04WEST CENTRALA 5 590,450 21,050 3.6% 36,615 6.2% 57,665 9.8% 4.7% -29,980 3,471 $42.95B 9 554,926 30,730 5.5% 2950 0.5% 33,680 6.1% 5.9% -1,148 2,462 $37.50C 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


Office Development Pipeline5,746,652 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.

BUILDING NAME ADDRESS SUBMARKET SF PRE-LEASED DEVELOPER EST.

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



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

8 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International

Copyright © 2015 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | Market000 Address, Suite # 000 Address, Suite #+1 000 000 0000colliers.com/<<market>>

8 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International

Copyright © 2019 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | Austin111 Congress Avenue, Suite 750 Austin, Texas 78701+1 512 539 3000colliers.com/austin

FOR MORE INFORMATIONKaitlin HolmResearch and Marketing Coordinator | Austin+1 512 539 [email protected]

Q3 2019 Austin Office Highlights

QUOTED GROSS RENTAL RATES FOR EXISTING TOP PERFORMING OFFICE BUILDINGS

BUILDING NAME ADDRESS SUBMARKET RBA (SF) YEAR BUILT

% LEASED

AVAIL. SF

RENT ($/SF) OWNER

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

Our philosophyrevolves around the fact

that the bestpossible results come

from linking our globalenterprise with

local advisors whounderstand your

business, your market,and how to

integrate real estateinto a successfulbusiness strategy.

C O L L I E R S I N T E R N A T I O N A L G L O B A L L O C A T I O N S

COMMERCIAL REAL ESTATE SECTORS REPRESENTED

OFF

ICE

IND

US

TR

IAL

LAN

D

RE

TAIL

HE

ALT

HC

AR

E

MU

LTIF

AM

ILY

HO

TE

L

$127BTRANSACTION VALUE

2BSF UNDER MANAGEMENT

$3.3BIN REVENUE

438OFFICES

17,300PROFESSIONALS

340ACCREDITED MEMBERS

68COUNTRIES

SIOR

ADVANTAGEColliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including a�liates), with more than $26 billion of assets under management.

Colliers professionals think di�erently, share great ideas and o�er thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing �rms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services �rm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.

PROPERTY POSITIONING

& MARKETINGREAL ESTATEINVESTMENT

VALUATION &

ADVISORYCORP

ORAT

E

SOLU

TIONS

MANAGEMENT

REAL ESTATE

REPRESENTATION

LANDLORDREPRESENTATION

TENANT

LOCAT

ION

INTE

LLIG

ENCE

MARKET

RESE

ARCH

&

MAR

KETS

PROJECT

MANAGEM

ENT

COLLIERSSPECIALIZATIONS

andREAL ESTATE SERVICE

REPRESENTATION

DATA

CEN

TERS

HEA

LTHCARE

HOTELS & HOSPITALITY SERVICES INDUSTRIAL LAND

HOUSING & MULTIFAMILY SERVICES MARINA, LEISURE & GOLF COURSE

OFFICE R

ETAI

L

SP

ECIA

L PU

RPOS

E

construction continues as tech companies keep taking space ...€¦ · austin research &...

Documents