The Austin office market saw several major transactions in 2023, with over 1 million square feet trading hands. Several large office portfolios changed owners as investors saw opportunities in Austin’s strong market fundamentals.
Read Next: The Industries and Companies That Came to Austin in 2023
In this article, we recap the five largest Austin office sales of 2023 based on square footage. From Intel’s campus in Southwest Austin to the City of Austin’s purchase of Ben White office condos, these major deals shaped the office investment landscape this past year.
5 Largest Austin Office Sales in 2023
1. Intel Campus
Size: 424,332 square feet
Address: 1300 S. MoPac Expy
Submarket: Southwest
Blue Owl bought the former Intel campus from Intel Corporation in 3Q 2023 for roughly $111 million. The campus spans 424,332 square feet across three connected buildings.
Blue Owl is an investment and asset management company. Blue Owl owns 504 properties across the United States and Canada.
2. 5th + Tillery
Size: 190,546 square feet
Address: 3100 E. 5th Street
Submarket: East
Capital Metropolitan Transportation Authority bought Fifth + Tillery from CIM in 2Q 2023. At the time of sale, the building was only 23.7% leased.
CIM is a community-focused real estate lender, developer, operator, and owner. CIM currently owns 59,850,592 square feet across 494 properties nationwide.
3. Three Barton Skyway
Size: 173,302 square feet
Address: 1221 S. Mopac Expy
Submarket: Southwest
Riverside Resources bought Three Barton Skyway from Brandywine Realty Trust in 3Q 2023. At the time of sale, the property was 83.8% leased.
Riverside Resources is an Austin-based investment firm. Riverside Resources owns 69 properties across Texas, totaling 3,774,293 square feet.
4. Ben White Office Condo Portfolio
Size: 244,630 square feet
Address: 5202 Ben White
Submarket: East
The City of Austin purchased a portfolio of three office condos from Thor Equities in 4Q 2023. The City of Austin occupies a majority of the property’s space and plans to honor the Mexican Consulate’s previous lease for 35,000 square feet. At the time of purchase, the portfolio was 100% leased.
5. Hartland Plaza
Size: 171,785 square feet
Address: 1717 W. 6th Street
Submarket: West Central
1717 Hartland Plaza LP purchased Hartland Plaza from CIM in 1Q 2023. This was part of a two-property portfolio that included retail space at the Hartland Plaza Shops. At the time of sale, the buildings were 93% leased.
This is the only property currently owned by 1717 Hartland Plaza LP.
Conclusion
Though sales activity slowed in the latter half of 2023, these top five transactions demonstrate investors’ continued interest in Austin’s office sector. As we head into 2024, it will be interesting to see if these new owners implement repositioning strategies for their acquisitions.
