Austin Market Update: Office Transaction Volume Expands

As of June, seven office properties totaling nearly 902,200 square feet changed hands in Austin, a steep climb from May, according to CommercialEdge data.

On a month-over-month basis, the metro’s sales volume more than doubled. Compared to June 2020, when only 115,500 square feet changed hands, Austin’s investment market has come a long way. In the first half of the year, office transactions reached an estimated $969 million, which traded at an average sales price of $509 per square foot, well above the national average of $283 per square foot. In the first six months of last year, the metro saw office transactions totaling an estimated $409 million—less than half of the 2021 figure—averaging at $368 per square foot.

One of the most significant deals this year, Trammell Crow entered in a definitive agreement Kilroy Realty Corp. regarding the off-market sale of the recently completed Indeed Tower in Austin’s CBD. The buyer committed to paying $580 million for Austin’s tallest and largest office tower, spanning 730,000 square feet. The 36-story Class A+ high-rise sold at $818.7 per square foot, well above the metro’s average. At the time of the agreement, the asset was 57 percent occupied and anchored by Indeed.com.

The second largest deal in June was the disposition of the 128,990-square-foot Aspen Lake Three property, the third and final sale within the Aspen Lake Office Park in Northwest Austin. The buyer was Apollo Global Management, which picked up the asset at 10355 Pecan Park Blvd. from Patrinely Group LLC and USAA. Aspen Lake Three is entirely leased to fin-tech company Q2 Holdings Inc.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.