Tech companies continue to drive growth in Austin's tight office market. Net absorption was 528,811 SF in Q2 2019 despite increasing vacancy. Rents rose to $35.74/SF citywide with several submarkets exceeding $50/SF. New supply is under construction but largely pre-leased, indicating demand will remain strong through 2020 barring economic slowdowns.
Austin’s office market continues to deliver as
we hit the midyear mark
Boots On The Ground Commentary by David Bremer
Our “Boots on the Ground” view point 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.
There are two mistruths I’ve heard perpetuated by the real estate
community, including myself once or twice, over the past year: (1)
This occupancy and these rates can’t last forever, and (2) MoPac
construction should be done soon.
The Austin office market rebounded sharply in the 2nd quarter,
with extremely high Net Absorption of almost 600,000 RSF.
Vacancy remained relatively flat, however rates continue to trend
higher.
http://bit.ly/Q2_2017_Austin_Office_Page
JLL Louisville Industrial Outlook - Q4 2016Ross Bratcher
New construction, tenant demand keep rates at high levels. Employment challenges meet creative solutions, new political landscape. Leasing velocity remains true to historic size segments in 2016.
Vacancy at the top of the market is slowly moving upward, although levels remain below historic norms. New supply and givebacks upon relocation due to efficiency have begun to and will continue to result in rising vacancy.
office space toronto, toronto office space, office search toronto, office space in toronto, office rentals toronto, commercial office space, commercial real estate toronto, office rent toronto, toronto offices for lease
Austin’s office market continues to deliver as
we hit the midyear mark
Boots On The Ground Commentary by David Bremer
Our “Boots on the Ground” view point 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.
There are two mistruths I’ve heard perpetuated by the real estate
community, including myself once or twice, over the past year: (1)
This occupancy and these rates can’t last forever, and (2) MoPac
construction should be done soon.
The Austin office market rebounded sharply in the 2nd quarter,
with extremely high Net Absorption of almost 600,000 RSF.
Vacancy remained relatively flat, however rates continue to trend
higher.
http://bit.ly/Q2_2017_Austin_Office_Page
JLL Louisville Industrial Outlook - Q4 2016Ross Bratcher
New construction, tenant demand keep rates at high levels. Employment challenges meet creative solutions, new political landscape. Leasing velocity remains true to historic size segments in 2016.
Vacancy at the top of the market is slowly moving upward, although levels remain below historic norms. New supply and givebacks upon relocation due to efficiency have begun to and will continue to result in rising vacancy.
office space toronto, toronto office space, office search toronto, office space in toronto, office rentals toronto, commercial office space, commercial real estate toronto, office rent toronto, toronto offices for lease
Atlanta's office market rebounded
in the fourth quarter of 2018 after
two consecutive quarters of negative
absorption. Leasing activity well ahead
of 2017's pace allowed the market to
record the second strongest quarter of
absorption since 2015. As the market
moves in a positive direction, vacancy
rates will continue to decline while rental
rates increase at a faster pace.
-U.S. Office Market Was Driven by the Tech
Sector in the Fourth Quarter of 2018
-Absorption exceeds construction completions, vacancy
declines and the pipeline grows
-Tech markets tighten
-Rents rise, but the pace slows:
Share or view online at colliers.com/houston
Houston’s industrial market continues to expand adding 3.4M SF of new inventory in Q1 2019 with an additional 16.2M SF under construction
Referans Bahcesehir which is being constructed, in the center of the most regional destination as Bahçeşehir, shines out with its central location and unique landscape including social facilities such as a fitness center, sauna, sports facilities, children’s playground and recreational areas.
Not only drawing attention for immediate surroundings including commercial centers and private schools but also providing the easily accessible location with closeness to Tem Highway and connection roads, ongoing construction of 3rd Bridge Connection roads and Metro Projects
Bahcesehir is a rising value in the great city of Istanbul… Located at a new transportation junction in the northwest of the City… Located at such a spot that the access roads for the 3rd bridge and for the 3rd Airport will reach the region in 2016. The Marmaray and the Subway will extend all the way to Referans Bahcesehir respectively in 2018 and 2019.
465 flats and 34 stores are designed with an outstanding approach and arranged with a unique perspective offering the following options: 1 plus 1, 2 plus 1, 3 plus 1, 3.5 plus 1, 4 plus 1, and 4.5 plus 1. It is planned so as to safeguard you and your loved ones based upon a modern, technological safety approach. As you experience the joy and luxury here, you will be content and feet at ease.
It is worth seeing both inside and outside with heart-warming cafes, tasty restaurants and elegant stores… And it is ready to offer a vivacious social life with a warm and cozy space design.
A folding swimming pool and indoor swimming pools, playgrounds, Turkish bath, sauna… It has them all. Everything you need for your well-being and for having a pleasant time will be at your service. You simply need to align the rhythm of life with the rhythm of Referans Bahcesehir.
https://listingturkey.com/property/referans-bahcesehir/
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus o...Joseph Lewis Aguirre
Presentation to Windust Meadows HOA Board of Directors June 4, 2024: Focus on Public Safety as Job #1, Engagement, Wealth of HOA, Branding, Communication, Culture, Civic Responsibility
Torun Center Residences Istanbul - Listing TurkeyListing Turkey
THERE IS LIFE IN ITS CENTER!
The most energetic spot of the city that will add utterly different pleasures to your life, with a park that will make Istanbul breathe, delighting indoor and outdoor bistros, cafes, restaurants, the brand-new Food Hall concept, where dozens of unique tastes are served together, market area, cinema, theater, fitness club, SPA and event venue...
All the pleasures that will enrich your lives are awaiting you on the most beautiful side of the city, at Torun Center Residences. In Mecidiyeköy, where the heart of Istanbul beats, business, life and entertainment opportunities are located at the exact center, at Torun Center, the most beautiful side of the city.
Penthouse apartments and different styles of flats from 1 + 1 to 4 + 1, from 100 to 425 square meters in a 42-story residence tower, have been designed for those who want to live in the center of magnificence. Torun Center is the redefinition of a better life with specially landscaped floor gardens, apartment options with private balconies, and automatic glass systems equipped with Trickle Ventilation that offers clean air comfort.
Business and life in the same place
Excellent service
Torun Center has many delightful details, from a swimming pool to sunbathing and resting terrace. With 24/7 concierge services, 24/7 security, valet, technical service, closed-circuit camera system (CCTV), central heating and cooling system, it makes your life easier.
Delightful details
The two-story Torun Center Lounge, with its indoor and outdoor seating areas, children's playroom, private dining and TV lounge, promises unforgettable memories to you and your loved ones with its unique Istanbul view.
Neighboring to the most pleasant square of Istanbul
A few steps from the Torun Center Residences, you can reach the city's most modern city square and open the doors of a quality city life. Torun Center Residences brings together on the same project the long-awaited city life for Istanbul and gourmet restaurants, cafes, gym and SPA, and state-of-the-art cinema and Artı Stage, hosting the most famous plays of the season.
Located at the intersection of alternative public transportation options such as the metro and Metrobus, Torun Center comes to the fore as the most accessible office for both sides of Istanbul. With a central location and rich transportation lines, Torun Center offices make life easier for employees and increase productivity.
One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
One FNG by Group 108 is launching a new commercial project in Sector 142 Noida. Office space and high street retail shops on the FNG and Noida Expressway. For more information visit the website https://www.onefng.com/
The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
Scanning tenants in NYC requires a thorough and compliant approach to ensure you find reliable renters. For a positive rental experience, consider hiring a property management service. Belgium Management LLC specializes in NYC rental property management and tenant relationship management. We prioritize tenant satisfaction, making us a trusted name in New York property management. Our dedicated team ensures tenants feel valued and supported throughout their lease.
Rixos Tersane Istanbul Residences Brochure_May2024_ENG.pdfListing Turkey
Tersane Suites Residences is a luxurious real estate project located in the heart of Istanbul, next to the beautiful Golden Horn. This unique development offers hotel concept residences with Rixos management, making it the perfect choice for both homeowners and investors.
The Tersane Suites Residences offers a wide range of options, from studio apartments to spacious four-bedroom units, all designed to the highest standard. The suites are finished with high-quality materials and feature modern, open-plan living spaces, fully-equipped kitchens, and large balconies with stunning views of the city and sea.
One of the standout features of Tersane Suites Residences is the Rixos management, which provides a truly exclusive and upscale living experience. Residents will have access to a range of luxury amenities, including a fitness center, spa, and indoor and outdoor swimming pools. Plus, the on-site restaurants and cafes provide a taste of the local and international cuisine.
The Tersane Suites Residences also offers a great opportunity for investors, as it provides a rental guarantee program. This means that investors can enjoy a steady income stream, with the peace of mind that their property is being managed by a reputable and experienced team.
The location of Tersane Suites Residences is also unbeatable, with easy access to the city’s main transportation links and within close proximity to the historic center, making it the perfect base for exploring all that Istanbul has to offer.
Lixin Azarmehr, a Los Angeles-based real estate development trailblazer, co-founded JL Real Estate Development (JL RED) in 2015 and serves as its CEO. Her expertise has propelled the firm to specialize in luxury residential and mixed-use commercial projects, with a portfolio that features upscale retail spaces and sophisticated care facilities.
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
Omaxe Sports City Dwarka stands out as a premier residential and recreational destination, offering a blend of luxury and sports-centric living. Located in the thriving area of Dwarka, this project by Omaxe Limited is designed to cater to modern lifestyle needs while promoting a healthy, active living environment.
Flat available for sale
Location- Tupudana, Ranchi
Savitri enclave
Area- 3BHK
Rate- 4000/sq.ft.
Super Build Up Area-1629 sq.ft.
Build-up area-1253 sq.ft.
Rate- 65lakh16k(approx)
Floor available- Flat available in all floor(G+12)
Balcony- 2
Washroom- 2
Parking - CAR PARKING
Amenities- Joggers track,temple, children's park,gym,banquet hall (5 Lakh)
Possession year (Handover year)- Dec 2025
Outside View from the apartment and flat balcony is very beautiful.
For more information contact AASHIYANA STAR PROPERTIES
7766900371
Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szet...Volition Properties
=== Investing In The US As A Canadian… And How To Do It RIGHT!! (feat. Erwin Szeto) ===
Ever been curious about Real Estate Investing in the US?? At Volition, for the past 14 years, we have been focused on helping investors invest in over $250M of real estate and generate $100M of wealth in the Toronto market, but we are always open to learning more about other business models and learning from other investors.
The US has always been an intriguing market to invest in. But the US is a big place… if you’re interested in investing in the US, you probably have a lot of questions, like:
☑️ Specifically WHERE should you invest?
☑️ What are the best markets to invest in and why?
☑️ How much are property prices there?
☑️ What are the returns like?
☑️ What is cashflow like?
☑️ Compared to investing in Toronto or other cities in Ontario, what are the benefits / tradeoffs?
☑️ What ownership structure should I use?
☑️ What are the tax implications?
☑️ Can I get financing?
☑️ What are tenants like?
Enter Erwin Szeto, a longtime friend of Volition. Since 2005, Erwin Szeto and his team have navigated the challenging landscape of being landlords in Ontario. Now, they are shifting their focus and guiding their clients' investments toward the more landlord-friendly environment of the USA. This decision comes after assisting Canadian clients in transacting over $440,000,000 in income properties. Faced with issues like affordability constraints, tenant-friendly laws, rent control, and rental licensing in Canada, Erwin sees a clear opportunity in the U.S. Here, there is a significant influx of investments leading to the creation of high-paying manufacturing jobs. Erwin and his clients are poised to capitalize on these opportunities where landlord rights are stronger and there is no rent control.
To facilitate this transition, Erwin has partnered with and become a client of SHARE, a one-stop-shop U.S. Asset Manager. Founded by Canadians for Canadians, SHARE enables as passive an ownership experience as possible for landlords in the U.S., while still maintaining direct, 100% ownership.
Erwin is “Making Real Estate Investing Great Again”!!
Website: https://www.infinitywealth.ca/
Facebook: https://www.facebook.com/iwinrealestate and https://www.facebook.com/ErwinSzetoOfficial
Podcast: https://www.truthaboutrealestateinvesting.ca/
Instagram: https://www.instagram.com/iwinrealestate/ and https://www.instagram.com/erwinszeto/
Brigade Insignia offers meticulously designed apartments with modern architecture and premium finishes. The project features spacious 3,3.5,4 and 5 BHK units, each thoughtfully planned to provide maximum comfort, natural light, and ventilation.
https://www.newprojectbangalore.com/brigade-insignia-yelahanka-bangalore.html
Need MCA leads? No sweat! MCAs are great for small biz funding. Learn how to snag top-notch leads: businesses needing cash, with repayment ability, decision-makers, and accurate contacts. Use content, social ads, lead platforms, partnerships, and capture processes for quality leads.
https://www.leadgeneration.media/blog/b/streamline-your-mca-sales-process-with-pre-qualified-leads
Urbanrise Paradise on Earth - Unveiling Unprecedented Luxury in Exquisite Vil...JagadishKR1
Immerse yourself in the epitome of luxury living at Urbanrise Paradise on Earth. These opulent 4 BHK villas, nestled off the prestigious Kanakapura Road in Bangalore, redefine elegance and sophistication. With meticulous craftsmanship, breathtaking design, and unparalleled amenities, Urbanrise Paradise on Earth offers a sanctuary where every moment is infused with luxury and serenity. Experience a life of grandeur and indulgence at this exclusive residential enclave.
Elegant Evergreen Homes - Luxury Apartments Redefining Comfort in Yelahanka, ...JagadishKR1
Experience unmatched luxury at Elegant Evergreen Homes, offering exquisite 2, 3, and 4 BHK apartments in the serene locality of Yelahanka, Bangalore. These meticulously crafted homes blend modern design with timeless elegance, providing a harmonious living environment. Enjoy top-tier amenities and a prime location, making Elegant Evergreen Homes the ideal choice for discerning homeowners.
Elegant Evergreen Homes - Luxury Apartments Redefining Comfort in Yelahanka, ...
Q2 2019 | Austin Office | Research & Forecast Report
1. Research &
Forecast Report
AUSTIN | OFFICE
Q2 2019
Kaitlin Holm Research and Marketing Coordinator | Austin
Boots On The Ground Commentary by David Bremer
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.
Austin’s market continues to expand at an unprecedented pace,
led by significant corporate expansions and hiring coupled with
significant organic growth. To Austin’s credit, it has largely been
able to maintain it’s notable quality of life, with WalletHub recently
naming Austin as the second-best city to live in. Austin was also
noted as the number four city out of 100 major metropolitan areas
for STEM capability (Science, Technology, Engineering and Math).
Technology companies continue to be the primary driver of Austin
growth. The city now has eight tech companies (Apple, Dell, IBM,
Google, Indeed, Samsung, NXP and Applied Materials) occupying or
preparing to occupy over one million square feet. Others, such as
Oracle and Facebook, will likely be approaching these sizes in the
near future. A substantial amount of space is under construction
and these tech giants show no signs of a slowdown, which means
there will be a continued surge in hiring and more people on
the highways. Location-wise, the majority of these high-growth
companies will be in the CBD or in North Austin. When you take
into account the likely additional expansion in far Northwest Austin
by Apple and a few other companies close to taking down real
estate (150K-450K SF) citywide, we have every reason to believe
that the employee migration to Austin will continue.
The result of all of this demand has kept the market extremely
tight and has continued to push rates upward. Medium and large
companies are urged to start the real estate evaluation process
sometimes 2-3 years in advance in case they have to consider
build-to-suits or pre-leases due to lack of availability. An active
market also means very busy construction crews. Finish-out
pricing has trended significantly upwards and is now one of the
most important factors to evaluate when comparing options on
the market. Parking is also near the top for items to discuss on the
front end as higher rates result in a flight toward higher density.
Tech companies continue growth in Austin’s
office market
Future Forecast
Austin is set to deliver a huge amount of new office space in the
next 3 years, but much of this space is pre-leased well in advance
of delivery. Barring a significant national economic slowdown
(elections, financial markets, etc.), we don’t see a reason why
Austin would slow in the coming months or quarters. Occupancy
levels are rising in the short term until some of the new projects
start to deliver and we believe the cost of space will continue
steadily increasing until the supply and demand evens out.
Tip: When looking at new product, operating expenses (primarily
taxes) are quoted as artificially low. In the past, these expenses
were generally modeled as a slow escalation over 2-3 years as the
taxing authority caught up to full valuation. We feel there is likely
to be a new trend of very fast tax/expense catch up, so make sure
your broker is advising you smartly and conservatively on this
front.
By The Numbers
TOTAL INVENTORY
59.2M SF
TOTAL VACANCY
9.5%
Q2 NET ABSORPTION
528,811 SF
YTD NET ABSORPTION
493,477 SF
TOTAL UNDER
CONSTRUCTION
5.29M SF
TOTAL PRE-LEASED
2.15M SF
CBD CLASS A
$60.47as tracked by Colliers
SUBURBAN CLASS A
$41.19as tracked by Colliers
AVERAGE
RATE/SF
$35.74
*Rates inclusive of estimated operating expenses.
2. 2
Austin Office Overview
In the second quarter of 2019, Austin’s office market reported
528,811 SF of positive net absorption. The majority of the positive
absorption occurred in Class B buildings with a total of 430,300
SF of positive net absorption. Class B buildings in Austin posted
112,462 SF of positive net absorption, while Class C properties
posted 13,951 SF of negative net absorption.
Currently, 5,290,054 SF of office space is under construction and
2,156,834 SF of that is pre-leased. The third quarter of 2019 is
expected to see 883,094 SF of deliveries and 664,679 of that is
pre-leased. One of the buildings set to deliver in the third quarter
of 2019 is Offices at Saltillo, which was supposed to deliver in the
second quarter. The entire 150,000 SF East-side building is already
100% leased to Google.
SXSW Center in the CBD submarket was the largest building to
deliver in the second quarter. This 140,000 SF building delivered in
May and is 94% leased by a few large tenants including SXSW and
WeWork. The third quarter of 2019 is expected to see twelve new
buildings come online.
The citywide average rental rate increased over the quarter from
$35.55 per SF in Q1 2019 to $35.74 per SF in Q2 2019. Class A
rental rates in Austin’s CBD increased by 3.6% over the quarter
to $52.78 per SF up from $50.90 per SF in the first quarter of
2019. The overall suburban Class A rental rate also increased, from
$37.67 per SF to $37.97 per SF, over the quarter.
In May, CNBC announced that Austin has been ranked one of the
best big cities for starting a business. Austin ranked fourth behind
Orlando (FL), Oklahoma City (OK) and Miami (FL). Austin beat out
large cities like Atlanta and Denver and some other “tech” cities
like Durham and Raleigh, North Carolina. The rankings were based
on nineteen key metrics, including: job growth, share of college-
educated population, office space affordability and corporate taxes.
Cities with some of the largest populations, like New York, didn’t
make the list because they tend to be some of the least affordable
places to live.
Vacancy & Availability
Austin’s citywide vacancy rate decreased slightly from 10.3% in
the first quarter of 2019 to 9.5% in the second quarter of 2019.
The Southeast submarket’s Class C vacancy rate saw over 55,000
square feet come onto the market in the second quarter, which is
why they had the largest jump in vacancy moving from 4.5% in Q1
2019 to 24.2% in Q2 2019.
The largest decline in vacancy happened in the Class A Southwest
submarket, where the rate decreased from 12.6% to 10.2%, which
is due to over 345,000 square feet being taken off the market.
Overall suburban vacancy decreased quarter over quarter from
11.4% in Q1 2019 to 10.3% in Q2 2019, while the CBD’s vacancy
rate increased over the quarter from 5.6% to 6.0%.
2 Austin Research & Forecast Report | Q2 2019 | Office | Colliers International
Market Indicators
Relative to prior period
Annual
Change
Quarterly
Change
Quarterly
Forecast*
VACANCY
NET ABSORPTION
NEW CONSTRUCTION
UNDER CONSTRUCTION
*Projected
Summary Statistics
Austin Office Market Q2 2018 Q1 2019 Q2 2019
Vacancy Rate 10.6% 10.3% 9.5%
Net Absorption
(Million Square Feet)
-.262 -0.035 .528
New Construction
(Million Square Feet)
1.23 .378 2.46
Under Construction
(Million Square Feet)
4.09 3.18 5.29
Class A Vacancy Rate
CBD
Suburban
9.9%
11.1%
6.0%
10.9%
5.9%
9.3%
Gross Asking Rents
Per Square Foot Per Year
Average $34.37 $35.55 $35.74
CBD Class A $50.01 $50.90 $52.78
Suburban Class A $36.20 $37.67 $37.97
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
-200,000
-100,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Net Absorption New Supply Vacancy
ANNUAL ABSORPTION, NEW SUPPLY, AND VACANCY
3. $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%
CBD Vacancy Suburban Vacancy
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
11.5%
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Net Absorption New Supply Vacancy
Absorption & Demand
Austin’s office market posted 528,811 square feet of positive net
absorption in Q2 2019. The only submarkets that experienced loss
over the quarter were the Northeast submarket (74,550 square feet
of negative absorption) and the CBD submarket (54,501 square feet
of negative absorption).
A majority of the negative net absorption over the quarter occurred
in the Class B Northeast submarket, totaling 74,650 square feet
of negative absorption. In April, all of Promontory Point C (46,893
square feet) was put on the market brought the submarket’s net
absorption number down quite a bit. In all, 89,695 square feet came
to the Class B Northeast submarket.
The Northwest submarket helped push the absorption balance
into positive numbers with 197,224 square feet of positive net
absorption. The majority of the absorption in the Northwest
submarket happened Class A space and can be attributed to
Allergan moving into an estimated 43,000 square feet at Riata
Corporate Park 2 (12301-B Riata Trace Parkway).
The Austin market recorded forty-eight signed leases in the second
quarter with some big tenants leading the way. Visa signed their
133,823 square foot lease for Research Park Plaza Building I at
12401 Research Boulevard, while Apple is set to take even more
space in the tech corridor by taking all of Parmer 3.4. The 115,000
square foot building was just completed late last year.
Rental Rates
According to CoStar, our data provider, Austin’s citywide average
rental rate increased 1.16% over the quarter from $35.33 per SF to
$35.74 per SF.
As expected, the highest rates across the Austin office market in
the second quarter were in CBD Class A buildings where net rental
rates averaged $52.78 per SF. Rental rates were also high in the
East and South submarkets where Class A rental rates reached
$49.27 per SF and $43.89 per SF, respectively.
Citywide Class B rental rates rose slightly in Q2 2019 to $31.33
per SF from $30.80 per SF in Q1 2019. CBD Class B rental rates
increased by 2.0% over the quarter from $47.17 per SF to $48.15
per SF in Q2 2019.
3 Austin Research & Forecast Report | Q2 2019 | Office | Colliers International
UNEMPLOYMENT 5/18 5/19
AUSTIN 2.7% 2.2%
TEXAS 3.6% 2.9%
U.S. 3.6% 3.4%
JOB GROWTH
Annual
Change
# of Jobs
Added
AUSTIN 2.3% 24.7K
TEXAS 2.4% 301.2K
U.S. 1.5% 2.3M
CBD vs. Suburban
CLASS A OFFICE VACANCY
CLASS A OFFICE RENTS
Job Growth & Unemployment
(not seasonally adjusted)
QUARTERLY ABSORPTION, NEW SUPPLY, AND VACANCY
4. 44 Austin Research & Forecast Report | Q2 2019 | Office | Colliers International
Q2 2019 Top Office Lease Transactions
BUILDING ADDRESS SUBMARKET SF TENANT LEASE DATE
12401 Research Blvd Northwest 133,823 Visa Apr-19
13011 McCallen Pass Northeast 115,000 Apple Apr-19
8407 Wall St Northeast 109,312 Texas Department of State Health Services1
Jun-19
7501 Capital Of Texas Hwy N Northwest 87,408 Indeed, Inc.1
Apr-19
405 Colorado St CBD 69,550 DLA Piper Apr-19
2010 S Lamar Blvd South 63,903 JUUL3
May-19
401 S 1st St South 50,000 Baker Botts May-19
200 W 6th St CBD 33,505 Brown Advisory, LLC May-19
2101 E Saint Elmo Rd Southeast 31,000 MedtoMarket, Inc Apr-19
805 Las Cimas Pky Southwest 30,026 Aeglea BioTherapeutics, Inc. Apr-19
901 E 6th St East 29,047 OpCity May-19
13785 Research Blvd Far Northwest 25,270 Ping Identity Corporation May-19
800 Brazos St CBD 23,656 ACloudGuru Jun-19
835 W 6th St CBD 21,309 Clear Data2
Jun-19
1400 Lavaca St CBD 20,816 Butler Snow May-19
916 S Capital Of Texas Hwy Southwest 18,447 AXA Financial Advisors May-19
979 Springdale Rd East 17,686 Scale Factor3
Apr-19
5001 Plaza On The Lake Dr Southwest 17,416 Amherst Insight Labs LLC May-19
5812 Trade Center Dr Southeast Ind 15,520 Frontgate Holdings, LLC May-19
Leasing Activity
Austin’s office market recorded 1,436,717 SF of leasing activity in Q2 2019. Major transactions this quarter included Visa leasing all of
Research Park Plaza Building I (12401 Research Boulevard), Apple taking 115,000 SF at Parmer 3.4 (13011 McCallen Pass) and Texas
Department of State Health Services renewing their lease at the Exchange Building (8407 Wall Street).
1
Renewal 2
Sublease 3
Colliers Deal
Q2 2019 Significant Sales Transactions – (100,000 SF or greater)
BUILDING ADDRESS SUBMARKET RBA (SF) YEAR BUILT BUYER SELLER SALE PRICE $/SF CLOSED
TIER REIT to Cousins
Properties Inc Portfolio (13
bldgs) 1
Multiple 2,689,002 Multiple
Cousins Properties
Incorporated
TIER REIT, Inc. $1,269,539,576 $470.09 Jun-19
Third + Shoal - 208 Nueces
St
CBD 374,963 2018
Credit Suisse
Asset Management
(Schweiz) AG
Cielo Property Group $307,662,600 $820.51 Jun-19
Research Park Plaza Bldg
I & II - 12401 Research
Blvd 1
Northwest 266,930 1999 DWS Spear Street Capital $123,500,000 $462.67 Jun-19
Exchange Building - 8407
Wall St
Northeast 109,315 1985
Capital Commercial
Investments, Inc.
The Keystone Group Undisclosed N/A Jun-19
Sales Activity
Austin’s office investment sales activity included seventeen building transactions, with fifteen of them being a part of two different portfolio
transactions. In June, Cousins Properties Incorporated purchased thirteen buildings in Austin as part of a twenty-four property portfolio
from TIER REIT, Inc. The average price per square foot for those thirteen properties was $470.09. The largest stand alone purchases was
Credit Suisse Asset Management buying Third + Shoal from Cielo Properties.
Sources: CoStar and Real Capital Analytics
1
Part of a portfolio
5. 5 Austin Research & Forecast Report | Q2 2019 | Office | Colliers International
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Chart Title–One Line
Chart Title
SUBHEAD 1 SUBHEAD 1 SUBHEAD 1 SUBHEAD 1
Body
INVENTORY DIRECT VACANCY
SUBLEASE
VACANCY
VACANCY VACANCY RATE (%)
NET ABSORPTION
(SF)
RENTAL
RATE
CLASS
# OF
BLDGS
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q2-2019 Q1-2019 Q2-2019 Q1-2019
AVG ($/
SF)
CBD
A 32 8,145,745 446,208 5.5% 37,391 0.5% 483,599 5.9% 6.0% 4,091 -4,809 $52.78
B 36 2,862,491 129,517 4.5% 61,531 2.1% 191,048 6.7% 4.5% -62,057 58,994 $48.15
C 10 631,980 10,798 1.7% 17,500 2.8% 28,298 4.5% 5.0% 3,465 -13,950 $26.85
Total 78 11,640,216 586,523 5.0% 116,422 1.0% 702,945 6.0% 5.6% -54,501 40,235 $50.83
SUBURBAN
A 198 23,210,467 1,849,681 8.0% 302,526 1.3% 2,152,207 9.3% 10.9% 426,209 196,754 $37.97
B 411 21,304,802 2,231,390 10.5% 295,876 1.4% 2,527,266 11.9% 12.7% 174,519 -289,172 $29.92
C 63 3,112,846 219,316 7.0% 6,714 0.2% 226,030 7.3% 6.7% -17,416 16,749 $27.10
Total 672 47,628,115 4,300,387 9.0% 605,116 1.3% 4,905,503 10.3% 11.4% 583,312 -75,669 $33.53
OVERALL
A 230 31,356,212 2,295,889 7.3% 339,917 1.1% 2,635,806 8.4% 9.6% 430,300 191,945 $40.63
B 447 24,167,293 2,360,907 9.8% 357,407 1.5% 2,718,314 11.2% 11.7% 112,462 -230,178 $31.33
C 73 3,744,826 230,114 6.1% 24,214 0.6% 254,328 6.8% 6.4% -13,951 2,799 $27.08
Total 750 59,268,331 4,886,910 8.2% 721,538 1.2% 5,608,448 9.5% 10.3% 528,811 -35,434 $35.74
INVENTORY
DIRECT
VACANCY
SUBLEASE
VACANCY
VACANCY VACANCY RATE (%) NET ABSORPTION (SF)
RENTAL
RATE
CLASS
# OF
BLDGS
TOTAL (SF) (SF)
RATE
(%)
(SF)
RATE
(%)
TOTAL
(SF)
Q2-2019 Q1-2019 Q2-2019 Q1-2019
AVG ($/
SF)
CEDAR PARK
A 6 555,222 69,515 12.5% 0 0.0% 69,515 12.5% 16.0% 19,376 -1,905 $32.87
B 8 348,822 20,599 5.9% 9,405 2.7% 30,004 8.6% 9.1% 1,859 17,182 $29.24
Total 14 904,044 90,114 10.0% 9,405 1.0% 99,519 11.0% 13.4% 21,235 15,277 $31.90
CENTRAL .
A 6 640,288 21,230 3.3% 15,703 2.5% 36,933 5.8% 5.6% -856 17,366 $33.09
B 40 2,166,333 210,253 9.7% 26,988 1.2% 237,241 11.0% 12.2% 27,157 46,255 $30.95
C 14 823,232 40,713 4.9% 0 0.0% 40,713 4.9% 6.2% 10,557 15,291 $30.79
Total 60 3,629,853 272,196 7.5% 42,691 1.2% 314,887 8.7% 9.7% 36,858 78,912 $31.05
EAST
A 3 222,579 16,525 7.4% 0 0.0% 16,525 7.4% 7.4% 43 127,296 $49.27
B 19 1,255,699 123,872 9.9% 0 0.0% 123,872 9.9% 9.2% -8,595 -24,421 $35.14
C 7 271,235 12,863 4.7% 1,200 0.4% 14,063 5.2% 8.6% 9,319 -5,676 $39.50
Total 29 1,749,513 153,260 8.8% 1,200 0.1% 154,460 8.8% 8.9% 767 97,199 $38.48
FAR NORTHEAST
B 3 94,996 18,380 19.3% 350 0.4% 18,730 19.7% 20.4% 640 -490 $30.13
Total 3 94,996 18,380 19.3% 350 0.4% 18,730 19.7% 20.4% 640 -490 $30.13
FAR NORTHWEST
A 13 1,889,243 207,184 11.0% 67,343 3.6% 274,527 14.5% 18.1% 66,898 -11,148 $33.28
B 11 713,324 56,644 7.9% 3,217 0.5% 59,861 8.4% 9.1% 5,167 15,477 $27.21
C 2 77,864 1,180 1.5% 0 0.0% 1,180 1.5% 1.5% 0 -1,180 $22.48
Total 26 2,680,431 265,008 9.9% 70,560 2.6% 335,568 12.5% 15.2% 72,065 3,149 $32.30
Austin Suburban Office Market Summary
Austin Office Market Summary (CBD, Suburban, & Overall)
7. 7 Austin Research & Forecast Report | Q2 2019 | Office | Colliers International
Office Development Pipeline
5,290,054 square feet of office space was under construction during Q2 2019. Two buildings delivered in Q2, with the largest being SXSW
Center (1400 Lavaca Street). The 140,000 square foot building was 94.3% leased at delivery and 64,967 SF of that will be occupied by
WeWork. 41% of the space under construction is already pre-leased and almost a million square feet is set to deliver in Q3 2019.
BUILDING NAME ADDRESS SUBMARKET SF
PRE-
LEASED
DEVELOPER
EST.
DELIVERY
Foundry 310 Comal St East 75,369 92.1% Cielo Realty Partners Jul-19
Offices At Saltillo 901 E 5th St East 150,000 100.0% Endeavor Real Estate Group Jul-19
Met Center Creative Office-Building A 8000 Metropolis Dr Southeast 71,225 0.0% Zydeco Development Jul-19
Bldg 2 1601 E Pflugerville Pky Far Northeast 10,378 34.1% Unknown Jul-19
Met Center Creative Office-Building B 8000 Metropolis Dr Southeast 67,625 0.0% Zydeco Development Jul-19
Davenport 360 6001 Bold Ruler Way Southwest 35,551 34.9% Unknown Aug-19
Domain Place 10727 Domain Dr North/Domain 38,638 20.2% Stonelake Capital Partners Aug-19
Paloma Ridge Building C 13620 Ranch Road 620 N Far Northwest 165,714 0.0% Unknown Sep-19
2050 Doublecreek Dr 2050 Doublecreek Dr Round Rock 16,000 0.0% Unknown Sep-19
2909 Flintrock Trce 2909 Flintrock Trce Southwest 37,432 0.0% Unknown Sep-19
Wesco 8656 W State Highway 71 Southwest 21,835 51.2% Unknown Sep-19
Parmer 4.1 Parmer 4.1 Northeast 196,000 0.0% Trammell Crow Company Sep-19
Pflugerville Professional Park 701 FM 685 Far Northeast 52,948 85.5% Unknown Oct-19
Building 3 1009 S Congress Ave South 30,468 38.0% Endeavor Real Estate Group Oct-19
Domain W4 11501 Rock Rose Blvd North/Domain 16,327 9.3% Endeavor Real Estate Group Oct-19
CityView 1007 S Congress Ave South 50,000 100.0% Turnbridge Equities Nov-19
Sunset Ridge at Southwest Parkway 8413 Southwest Pky Southwest 197,300 3.7% Unknown Nov-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
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
Building 2 120 S Lakeline Blvd Cedar Park 10,902 0.0% Unknown Dec-19
WestPark Professional 120 S Lakeline Blvd Cedar Park 10,902 0.0% Unknown Dec-19
Domain 10 11815 Alterra Pky North/Domain 299,673 59.9% Endeavor Real Estate Group Jan-20
Bldg 3 1601 E Pflugerville Pky Far Northeast 38,500 0.0% Unknown Jan-20
Buildings 2, 3, 4,, 5, 7, 9,10 13625 Ronald Regan Blvd Round Rock 36,650 71.3% Huffman Builders Jan-20
The Grove 1 4301 Bull Creek Rd West Central 134,114 0.0% Castletop Capital Jan-20
Parmer Sector 4.2 Parmer 4.2 Northeast 118,000 15.3% Trammell Crow Company Jan-20
Highland 3 523 E Highland Blvd Central 250,000 100.0% 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 III 7717 Southwest Pky Southwest 20,858 0.0% Unknown Apr-20
Building 3 9225 Bee Caves Rd Southwest 30,077 0.3% Unknown Apr-20
Building E 3601 S Congress Ave South 42,500 0.0% 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
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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
OFFICE
INDUSTRIAL
LAND
RETAIL
HEALTHCARE
MULTIFAMILY
HOTEL
$127BTRANSACTION VALUE
2BSF UNDER MANAGEMENT
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340ACCREDITED MEMBERS
68COUNTRIES
SIOR
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Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services
and investment management company. With operations in 68 countries, our 14,000
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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 affiliates), with more than
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