CRE Insights

Every other Monday on CRE Insights, I share the latest trends and data points to make better informed real estate decisions. Subscribe on LinkedIn www.linkedin.com/build-relati...

3. Positive net absorption of 480,994 SF indicates great signs of growth here in Austin.

Sublease space dipped below 5MSF for the first time since 2023 and overall things are trending in the right direction

2. Landlords are offering more in TI while also demising larger floor plans into >5,000 SF spaces to better meet the needs of tenants

Submarkets like CBD are becoming increasingly more competitive, with landlords offering shorter deal terms to get cash-flowing in now

1. Transaction volume increased but there was a large gap between our most expensive transaction (Sail Tower @ $649/SF) and our lowest transaction (Bridgepoint Square @ $72/SF)

New owners will take vastly different approaches to gain an ROI

I just published our Q4 2024 Office Report for Austin and here are three things that stood out most to me:

Developers who embrace Gen Z’s craving for collaboration and curated spaces will thrive. Office CRE is on its way back—more vibrant and exciting than ever.

What’s your take? Are we seeing the office comeback in your market?

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My newsletter, ATX CRE Insights, dives deeper into trends like these and keeps you informed to make smarter real estate decisions

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Expect more tenants that double as amenities that blend wellness, dining, and social spaces. Think coffee shops that become wine bars and IG-worthy casual dining.

These successful projects mix work-live-play. The Bouldin shines with anchor tenants like Life Time Athletics and Postino Wine Cafe, making it more than just an office. It's a timeline worthy experience everyday.

The Bouldin and The Republic lead the way in % leased, thanks in part to some recent leasing momentum but let's dive a bit deeper...

Who they're leasing to initially hits on a deeper Gen Z office trend, wanting everything in one place

1,411,676 SF of Office Space is set to enter the Austin market between Q4 2024 and Q1 2025. Here's how the top 5 projects stack up

Sail Tower in Austin just was bought by Cousins for $521.8 million ($649/SF) #austincre

Snapshot of recent data on #CRE sales volume by asset class in the US; Office and Multifamily pick up volume albeit at a significant pricing discount compared to last year

I've always been a sucker for vintage inspired branding lol

💡 Key Takeaway
Austin's office market remains a hotbed of activity, from public investments to private sector expansions. Stay tuned for more insights as the market evolves!
Follow for more updates on Austin's commercial real estate trends! 📊 #CRE #AustinRealEstate

📈 Nationwide: Office Leasing Sees Record Growth
Q4 is shaping up to be the strongest leasing quarter in 5 years, signaling recovery and optimism in the office sector.
🏢 Demand is surging as companies lean back into in-person setups!

⚡ EnergyX Picks Austin for HQ
This lithium extraction innovator is establishing its new HQ in Austin, boosting the city’s reputation as a clean energy hub. 🌱
📍Location: Northeast Austin

🚗 EV Supplier Xinquan Leases 218,400 SF at Mustang Ridge
Xinquan Automotive Trim Ltd, a Tesla supplier, expands in Southeast Austin, fueling the region’s EV manufacturing growth.
📍Location: Southeast Austin
📦 Total: 218,400 SF

🏢 Law Firm Pillsbury Signs 28,000 SF Lease at The Republic
Downtown Austin's premier office tower, The Republic, is now 50% leased after Pillsbury Winthrop Shaw Pittman LLP's major deal.
📍Location: CBD
🏗️ Total: 28,000 SF

🔥 City of Austin Buys One & Two Barton Skyway for $107.6M
Securing space for public safety initiatives, this South Austin acquisition underscores the city's growing infrastructure needs.
📍Location: South Austin
💰Total: $107.6 Million

🚨 Austin Office Market: November Review 🚨
November was buzzing with activity in Austin's office sector! From major city acquisitions to key tenant signings, here's a quick breakdown of the latest CRE developments. 🏢👇

Austin Office November Review Upticks in Major Leases and Sales Activity Shine Hope Even as Vacancy Rates Climb

With my recent career pivot into #CRE, I wanted to bring my years of copywriting with me. Enjoy the first edition of #AustinCRE Insights, a bi-weekly newsletter where I share what I'm seeing across the Austin market
creinsights.beehiiv.com/p/austin-off...

Stabilizing office demand shows resilience, especially in #NYC market who leads with 2.5 million SF of positive absorption between April and September

Interestingly, suburban markets are outperforming CBDs across the nation, reflecting shifting workplace priorities in a post-pandemic world.
#CRE #OfficeLeasing #CommercialRealEstate #OfficeMarket #Trends

3. Growing lease renewal activity compared to new leases (not surprising as the "completed" #softlanding of the US economy still leaves businesses with notable long term uncertainty of the market)

2. A preference for high-quality spaces (Class A buildings and TI dollars are influencing the market heavily)

1. Rising return-to-office trends (52.7% 10 City Average Occupancy last week according to Kastle Systems, the highest we've seen this year)

The #office market just delivered its strongest leasing quarter in five years due to three things 👇

That's great insight. Would you suggest a certain asset type to target as a Landlord? Multifamily vs another?

#Tech is your leading industry in leasing activity for the year with just under 10 million SF signed through September

The industry continues to benefit from the #aiboom