Another California relocation to Austin.
Austin Office Market Highlights
VACANCY RISES TO 15.4% Overall vacancy in the Austin office market is at 15.4%, up from 10.2% in April 2020. The increased vacancy rate reflects the recorded net absorption (move-ins minus move-outs) of negative 727,000 sq. ft., down from positive 713,000 sq. ft. at this time in 2020. There is 7.5 million sq. ft. currently under construction, with half of that space available. There have been 16 properties totaling 2 million sq. ft. delivered so far in 2021 with an occupancy rate of 30%. The vacancy rate for Class A properties is at 18.0%, up from the prior period at 11.7%. The asking price for office properties is currently at an average annual rate of $38.76 per sq. ft., down about 0.3% from this time last year at $38.86 per sq. ft.
FINANCIAL TECHNOLOGY FIRM RELOCATES HQS TO AUSTIN Green Dot Corp. is the latest company to leave California for Texas, relocating its corporate headquarters from Pasadena to Austin. Green Dot leases more than 141,500 sq. ft. at Pasadena Corporate Park at 3465 E Foothill Blvd., according to CoStar. Major companies such as Oracle, Tesla and data mining firm Palantir Technologies have announced plans to relocate or expand to Texas, including Austin, a city ranking among the nation’s fastest-growing metropolitan areas that has gained the attention of national and offshore real estate investors.
FOREIGN INVESTORS TURN TO AUSTIN According to the annual AFIRE International Investor Survey, a historical shift in foreign real estate investment in the United States is underway, moving from large urban centers toward smaller cities especially including Austin. This is the first time a so-called tertiary market, Austin, placed first in the survey ranking. Austin rose from 10th place last year. Meanwhile, New York, the nation’s largest commercial real estate market, ranked first last year and fell to fifth place this year. Austin office
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