Office buildings in the Austin area are hot properties right now.
“I’ve been doing this 17 years, and I would tell you, it’s the strongest investment market I’ve seen in my career,” said Jeff Coddington, a principal at Oxford Commercial, a real estate firm that tracks the office market.
The research by Oxford, a Cushman & Wakefield affiliate, shows 16 office properties currently for sale, totaling 3.2 million square feet of space. They include: Austin Centre, which houses the Omni Hotel downtown; 816 Congress; Chase Park, a five-building complex in North Austin; Thomas Properties Group’s remaining suburban Austin holdings; and office buildings totaling 400,000 square feet owned by Wereldhave, which is selling off its U.S. property investments to focus on Western Europe.
“It’s a huge number,” Coddington said, noting that the square footage on the marketrepresents roughly 7 percent the multi-tenant office space in the Austin-Round Rock area. “I think it’s a global vote of confidence in the Austin economy.”
Ben Thypin, director of market analysis for Real Capital Analytics Inc., a commercial real estate research firm based in New York, said it’s “an opportune time for both buyers and sellers of office buildings in Austin, and it’s for the same reason.
“Austin is one of the top secondary markets in the country, ” Thypin said by email. “From a buyer’s perspective, Austin looks good right now because it has many of the characteristics of primary markets – technology companies, government, and educational demand generators – but at a lower pricing level. From a seller’s perspective, the situation is even better, as all that institutional capital creates intense demand for any properties that are available for purchase.”
Read More: http://www.statesman.com/news/business/austin-office-market-heating-upstrong-demand-scarc/nT5TF/
Sony is selling its New York headquarters for $1.1bn in the largest disposal of the Japanese electronics group’s programme of asset sales.
The sale of the building at 550 Madison Avenue, designed by renowned architect Philip Johnson, will result in an operating income gain of approximately Y685m ($7.6m), Sony said.
Since the financial downturn, “trophy” properties, typically leased by premier office users, have been sought out as a more defensive investment given supply constraints, high barriers to entry and resilient rental rate growth.
“The Sony building is a very high-quality building and investors are still chasing after these trophy assets in New York seen by investors as a good store of value,” said Ben Carlos Thypin, director of market analysis at Real Capital Analytics. “Sony is leasing it back for three years, which is very attractive as it gives the buyer cash flow while they decided what to do with it long term.”
Read More: http://www.ft.com/intl/cms/s/0/11c73296-6155-11e2-957e-00144feab49a.html#axzz2IHF58wtX
Equity Residential (EQR), the largest publicly traded U.S. apartment landlord, agreed to sell 27 properties to Goldman Sachs Group Inc. (GS) and Greystar Real Estate Partners LLC for as much as $1.5 billion.
The transaction values the apartments at about $187,000 per unit, Chicago-based Equity Residential said in a statement today. The joint venture is obligated to purchase at least $1.38 billion of assets. The 8,010 units are located in northern New Jersey, Florida, Phoenix, Denver, Southern California and the Washington, D.C., and San Francisco Bay areas.
The $187,000 price per unit is more than the $149,000 average last year for the seven regions in which Equity Residential sold assets, according to Ben Carlos Thypin, director of market analysis at Real Capital Analytics Inc. in New York.
“It is reasonable to assume these are assets of relatively high quality,” Thypin said in an e-mail.
Read More: http://www.bloomberg.com/news/2013-01-07/equity-residential-to-sell-27-properties-to-goldman-greystar.html
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.