Texas capital

Austin Market Update: Texas Capital Attracts Outside Investors

In 2021, office transactions in Austin totaled $1.9 billion, according to data from CommercialEdge. Investing activity has increased significantly year-over-year, with total sales volume in 2020 reaching just $175 million.

Last year, nearly 9.5 million square feet of office space was traded in the metro. The Texas capital has also increased its average selling price since late 2020, when it averaged $292 per square foot. In 2021, the average subway price rose to $441 per square foot, easily surpassing other cities in the Sun Belt, such as Charlotte ($358), Dallas ($245), Phoenix ($236), and Atlanta ($216). dollars).

One of the latest and largest transactions completed in 2021 was Beacon Capital Partners‘ the purchase of One American Center, a 500,000+ square foot office building in downtown Austin. CalSTRS sold the 32-story downtown asset after ownership for approximately 16 years. Dating back to the 1980s, the building at 600 Congress Ave. is LEED Gold certified.

The best dollar deals

Austin had a record year for investment, attracting top players, such as Amazon, Samsung and Tesla. In 2021, several high-priced deals were completed in the Metro, including the sale of its tallest office tower. Based in Los Angeles Kilroy Realty purchased the newly delivered 730,000 square foot Indeed tower for $580 million from its original developer, Trammel Crow.

Based in Washington, D.C. Square Properties also entered the Austin market last year, with the purchase of a 22-story downtown tower. Former owners MetLife Investment Management and Invesco sold the 420,000 square foot office building for an undisclosed amount, but the asset has an estimated value of $292.8 million.

During the last month of the year, Cousin Properties concluded two office contracts in the CBD. The company, which restructured its portfolio, sold its 816 Congress tower for $174 million, after nearly a decade of ownership. Cousins ​​also purchased the remaining stake in the 32-story Colorado Building of 300 from his partner, for $162.5 million.

CommercialEdge covers over 8 million property records in the United States. View the latest monthly report from the CommercialEdge National Office here.