Austin Office Market In Robust Health: Report

AUSTIN, TX — The state of a city's office market often yields a barometer on the health of a city. By that measure, Austin is as strong as an ox, according to a new report.

Analysts at COMMERCIALCafé took a look back at the evolution of office markets across the U.S. from 2010 to 2019. To that end, researchers studied the top deals of the decade, the most active markets, the price per square foot fluctuations, the biggest office completions and more.

After the checkup, the capital city emerged the picture of robust health. Here are some key takeaways for Austin:

• The Austin office market started the decade with an average price per square foot of $142 and, after a dip in 2018, ended it at $404 — a staggering 184.5 percent increase.
• The biggest single-building deal of the 2010s here was the sale of 7700 Parmer for $272.25 million. Accesso Partners purchased the property from Spear Street Capital in 2015.
• The largest building completion in Austin was the 500,436-square-foot 500 West Second Street. Delivered in 2017, it is owned by Trammell Crow.

Nationally, the office sales volume settled around $100 billion for each of the last few years, after peaking in 2015, analysts noted, and prices continued to rise. What made the jump in Austin's per-square-foot average price "staggering," as researchers observed? Consider the national price per square foot, starting the decade off at $211 and ended at $291.

Read the complete article and see a full decade overview by clicking here.

Graphic courtesy of COMMERCIALCafé.