Office real estate: Who leased the most space in Austin in Q1?
Apr 24, 2014
Austin Business Journal
Office space continues to be absorbed throughout Austin, lowering vacancy rates and increasing the cost of doing business in the process. REOC Austin just released its first quarter 2014 office report and the vacancy rate across the market is down to 10.5 percent compared with 11.3 percent in the last quarter of 2013. The average quoted rental rate across the market was $26.18 per square foot — or $0.59 per square foot more than the last quarter of 2013
The biggest lease this year thus far is Athenahealth Inc.’s prelease of 103,000 square feet at Seaholm Power LLC project, the redevelopment of the Seaholm Power Plant in downtown Austin. Southwest Strategies Group Inc. is the major development partner
A smaller, but significant deal, is LatinWorks’ prelease of 50,000 square feet at Rollingwood Center, a new development near South MoPac Expressway and Bee Cave Road. LatinWorks is one of the city’s largest marketing and advertising companies. Endeavor Real Estate Group is the developer of the 215,000-square-foot Rollingwood project, which is southwest of downtown Austin
The largest office investment sale of the first quarter of 2014 was Fortis Property Group’s acquisition of three offices on Research Boulevard in Northwest Austin. The New York City real estate company purchased the 379,519-square-foot portfolio from a partnership headed by USAA Real Estate Co.
The second-largest office investment deal closed recently with DivcoWest of San Francisco picking up the five-building Avallon office complex also in Northwest Austin. It’s about 318,000 square feet
Here’s a snapshot of other major leases in the first quarter:
Wincor Nixdorf Inc., an IT firm, leased 36,000 square feet in Park Central I, 12345 N. Lamar Blvd.
Bankers Toolbox, which provides software to banks, leased nearly 23,000 square feet at Riata Corporate Park, 12331 Riata Trace Parkway, in Northwest Austin.
Amherst Holdings LLC, a financial services company, leased nearly 21,200 square feet at Plaza on the Lake I, near the Pennybacker Bridge in West Austin.
Wargaming, an online game developer, leased 16,370 square feet at The Avallon Building 3, 10415 Movado Circle, near the Arboretum in Northwest Austin.
Topaz Power Group, a natural gas energy company, leased 12,626 square feet at The Terrace VI, 2901 Via Fortuna Drive in Southwest Austin.
Resignation Media, publisher of thechive.com, leased 11,230 square feet at the San Jacinto Center, 98 San Jacinto Blvd.
Regus Executive Suites leased 11,230 square feet at 7500 Rialto Blvd. in Southwest Austin.