Transwestern Austin office: premium not only in gasTranswestern Austin office: premium not only in gashttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=29492014-09-26T07:24:00Z2014-09-26T07:30:00Z

AUSTIN - Austin is one of the most expensive office investment markets in the country, according to information compiled by Transwestern using data from Real Capital Analytics.

The average sf cost for second quarter 2014 was $269 in Austin, ranking it as No. 7 among high-priced markets.

The most expensive market, as might be expected, is Manhattan with an average price per sf of $770. Washington, D.C., San Francisco, San Jose, Boston, and Salt Lake City all landed above Austin on the list.

Of course, Austin doesn’t compare with the big markets when it comes to total volume and velocity of deals. Manhattan topped the volume list with $11.2 billion in sales in the second quarter followed by Los Angeles with $5.1 billion.

According to Transwestern, there were 27 office investment sales including properties or portfolios valued at more than $2.5 million in Austin during the first six months of 2014.

CoStar Group, which has different parameters, calculates the price per sf in Austin much lower — $138. CoStar’s data also indicates a dramatic drop in the amount of office investment deals in the past two quarters — $137 million in 2Q 2014 and $348 million in 1Q 2014.

Compare that with $818.4 million in 4Q 2013, which was the highest quarterly total since 3Q 2012 when nearly $1.1 billion in office investment deals were closed locally.

Austin Business Journal
Austin-Round Rock
http://www.bizjournals.com/austin/blog/real-estate/2014/09/want-to-buy-an-office-building-in-austin-prepare.htmlRead more at {Source}

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