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/
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.