Investors bullish on Austin office market

AUSTIN – Sales of office buildings surged in the first half of 2013, with twice as many buildings changing hands compared with mid-year 2012.

Thirteen sales took place from January through June involving 20 office buildings, compared with the sale of 10 buildings in the first half of 2012, according to Helen Jobes with real estate and investment firm Kennedy Wilson. Jobes tracks Austin area office market sales of buildings of more than 30,000 sf. Sales volume reached $682.6 million through mid-year, up about 140 percent from $284 million by mid-year 2012.

Just last week, New Jersey-based Real Estate Alert reported that two German-based investors made purchases in Austin. Union Investment of Frankfurt bought the Research Park Plaza III and IV buildings for about $103 million, while GLL Real Estate of Munich paid about $88 million for Las Cimas II and III.

Local brokers say average office rents are near record highs, and the high occupancy rate of 87 percent effectively means the market is out of space. They expect to see even more investment as the market continues to gain jobs and demand for office space outstrips supply.

Read more at the Austin American-Statesman.