AUSTIN MARKET REP OR T 3Q 2015
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Hartland Plaza; Photo by Scott Mason Photography
Last quarter, the Austin Market Report focused on development in the Austin office market. This quarter we are going to delve deeper into the underpinning of the development, as well as the overall Austin office real estate market, by focusing on the Austin economy. As the following pages will illustrate, the overall Austin office market remains very healthy. Since the beginning of 3Q 2014, Austin has added 2,154,010 sf of net rentable area. 2,156,761 sf were absorbed over this same period,
VIEW FROM THE EAGLE’S NEST RYAN PARZICK
justifying the latest wave of deliveries. The citywide vacancy rate is now 10.86% and the overall market average asking Class A full service rental rate is at an all-time high of $36.36/sf (see AQUILA’s breakdown of average as-is full service rental rates versus full service rates in this quarter’s Special Report on pages 5–7) . Austin’s population growth is among the fastest in the nation. Between 2010 and 2014, the city’s population grew by 13.2%, far exceeding the state of Texas (7.2%) and the U.S. (3.3%) rates1. Between 2010 and 2013, out of the fifty major markets in the country, Austin ranked first in net migrants as a percentage of total population with 5.8% (or 109,744 people) of the total 2013 population.
Market Research Director
Only two other metros exceeded 4% in this category2.
AQUILA Commercial
Also worth noting, nearly 50% of new migrants to Austin
parzick@aquilacommercial.com
arrived from outside of Texas. Austin’s residential real estate market is benefitting from the city’s growth. Earlier this year, WalletHub created a study comparing 25 of the largest metro areas across ten metrics indicating the well-being of their housing markets. Austin came in sixth overall, with two of the highlights being: third lowest in “underwater” mortgages and eighth highest in home equity/loan value ratio. As of August 2015, FreddieMac’s Multi-Indicator Market Index has Austin as the second most stable housing market in the U.S.
23 2015 AQUILA Austin Market Report
3
According to the Austin Chamber of Commerce, the Austin metropolitan area added 29,300 jobs between
ALL OF THE INDICATORS ANALYZED ABOVE POINT TOWARD AUSTIN HAVING A STRONG UNDERLYING FOUNDATION FOR ITS COMMERCIAL REAL ESTATE MARKET TO CONTINUE TO EXPAND.
September 2014 and September 2015, a 3.2% increase. This percentage change ranked Austin eleventh out of the top fifty metros in the country. Of these jobs, 10,200 were in the Professional & Business Services category, the category within which workers are most likely to occupy office space. Over the same time period, Austin unemployment decreased by 26.2%, which leaves the Capital City with a seasonally adjusted unemployment rate
broken down on a quarterly basis. These 57 deals netted
of 3.2%. The 3.2% unemployment rate is the lowest rate in
$429.64 million for local firms in two quarters, which puts
the top fifty metros in the U.S.
the city on pace to top the highest yearly total since 2002 ($716.18 million raised in 2007).
ECONOMIC INDICATOR CHECK BOXES:
Another indicator signaling the health of a metro area is Gross Domestic Product (GDP). The U.S. Bureau of Economic Analysis shows that Austin had the third highest
R Population Growth R Healthy Housing Market R Job Expansion R Strong Venture Capital Investment R Robust Gross Domestic Product
change of large metro areas in real GDP from 2013 to 2014, while also having the second highest change in real GDP from 2009 to 2014. All of the indicators analyzed above point toward Austin having a strong underlying foundation for its commercial real estate market to continue to expand. Our proprietary model, which powers our AQUILA projection graphs
Basing our analysis on the PricewaterhouseCoopers/
for each major submarket (located at the end of each
Thomson Reuters/NVCA MoneyTreeReport that tracks
submarket section in this report), illustrates the positive
venture capital nationwide, there have been 57 venture
effect of the strong economy on vacancy rates and
capital deals in Austin this year through 2Q 2015. This
rental rates over the next two years using scenarios of
value is the highest for the first two quarters of a year
conservative (1%) and aggressive (3%) job growth.
recorded since 2005, which is when our data began to be
HISTORICAL SNAPSHOT OF AUSTIN OFFICE SPACE Quarter
Net Rentable Area
Direct Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Average Class A Full Service Rental Rate
2013 Q4
42,444,966
4,960,873
(14,664)
12.14%
$33.32
2014 Q1
42,444,966
4,815,598
167,798
11.74%
$33.47
2014 Q2
42,475,999
4,647,525
6,277
11.79%
$33.44
2014 Q3
42,720,370
4,373,103
377,613
11.41%
$33.67
2014 Q4
42,784,115
4,068,526
420,985
10.56%
$34.78
2015 Q1
43,665,210
4,612,974
383,535
11.49%
$36.27
2015 Q2
44,534,490
4,795,149
585,639
11.90%
$35.60
2015 Q3
44,874,380
4,650,151
766,602
10.86%
$36.36
* Absorption includes sublease space.
Numbers based on CBRE statistics.
1
US Census Bureau. “2014 Population Estimates Program.”01 July 2014. Web. 12 October 2015.
2
Ramser, Chris. “Central Texas Economy in Perspective.” 18 November 2014. Austin Chamber of Commerce. 12 October 2015.
4
RENTAL RATES ARE RISING... AREN'T THEY? This quarter, in light of the 14 quarters of rent growth in Austin over the last 16 quarters, the AQUILA Market Research Department set out to achieve a more holistic understanding of this growth, taking into account all factors, especially the ongoing rise in construction pricing. According to Turner Construction’s Building Cost Index, which measures costs in the non-residential building construction market nationwide, there has been an 11.8% increase in construction costs since 1Q 2013. This index includes labor rates and productivity, material prices, and the competitive condition of the marketplace. The Houston market (data for Austin is not tracked) has seen a 14.3% increase in standard office space buildout between 2013 and 2015, according to Kirksey Architecture’s Construction Cost Update. By contrast, full service rental rate growth in Austin, TX over the same period was a comparable 13.9%. But, for a truly local analysis, AQUILA compared face rates and effective rates over the last 24 months to better understand rate dynamics in each of the city’s major submarkets.
METHODOLOGY Our analysis examined lease comps for our competitive set of buildings (see Appendix) in the major Austin submarkets (CBD, NW, and SW) that commenced January 1, 2013 through the end of 2015. To make sure that leases similar in nature were being compared, only new leases were included in this study. Excluding renewals eliminated the variability associated with the general practice of owners signing leases with conventionally lower tenant improvement allowances (TIs) than those offered to new tenants for a new space. A similar study we conducted, which included renewals and expansions, netted similar results on a less dramatic scale. Considering the rising costs of construction, which generally affects new leases more, we felt it prudent to only concentrate on the new leases in this report to show a clearer picture. This filtering netted 333 leases used in the study (CBD: 100, NW: 125, and SW: 108). Two calculations were made for each lease and compared to each other: •
Average Full Service (FS) Rate. This rate is the average total annual payment made by the tenant over the course of the lease term, measured in dollars per square foot. Rent abatement and operating expenses are included.
•
Average As-Is Full Service (FS) Rate. This rate prorates the TIs over the term of the lease and subtracts them from the Average FS Rate.
Keeping the operating expenses in both calculations maintains a better “apples-to-apples” comparison while illustrating what tenants are paying out of pocket. The two calculations for each lease were plotted on a graph at the corresponding lease’s commencement date and a regression line was inserted to show the behavior of the rates over time. 23 2015 AQUILA Austin Market Report
5
RESULTS
Graph 1: Citywide Avg. Full-Service vs. Avg. As-Is Full-Service Rental Rates $55
In Graph 1, the trendlines show the disparity between the rates becoming
$50
smaller around the beginning of 2014, but $45
more than doubling less than two years later. When broken down into submarkets,
with the exception of the NW submarket where the variance was roughly the same.
$40 Rental Rate ($/sf)
the same held true to different degrees,
$5.74
$35
$2.99
$2.57
$30
The gap illustrates the difference in the $25
Average FS Rate and the Average As-Is FS Rate, which can be translated into the
$20
amount an owner is providing in TIs. $15 Jan-13
There are a number of explanations that
Apr-13
Jul-13
Average FS Rate
Oct-13
Jan-14
Apr-14
Average As-Is FS Rate
Jul-14
Oct-14
Average FS Rate Trendline
Jan-15
Apr-15
Jul-15
Oct-15
Average As-Is FS Rate Trendline
can account for the cause of these trends:
Graph 2: CBD Avg. Full-Service vs. Avg. As-Is Full-Service Rental Rates
1. Construction costs are increasing across the board. The more it costs tenants to
$55
build out their space, the less likely many tenants will be able to afford to move into
$50
nicer buildings. Owners don’t want to
$6.92
lose the long term income by foregoing
2. New product in individual submarkets come in different flavors. As noted before,
Rental Rate ($/sf)
upfront costs in the term of additional TIs.
$45
$40
$3.56 $3.48
$35
the CBD and SW submarkets followed the trend of the majority of the overall Austin
$30
market, whereas the NW bucked the trend. The recent new deliveries in Austin adhered to the traditional principles of the
$25 Jan-13
Apr-13
Average FS Rate
6
Jul-13
Oct-13
Jan-14
Average As-Is FS Rate
Apr-14
Jul-14
Oct-14
Average FS Rate Trendline
Jan-15
Apr-15
Jul-15
Oct-15
Average As-Is FS Rate Trendline
submarkets. Downtown and SW buildings are superior products, whereas the NW has more traditional space. The need for higher-end improvements drives up the tenant buildout costs. To entice users to come to these new buildings, owners have been increasing their concessions. In the NW, owners can still increase their rental rates due to the hot market, but do not have to worry about giving as much money for improvements for standard space. Additionally, many tenants that have been priced out of the CBD and SW submarkets tend to do deals in the NW and will stick to a more budget-friendly rent while also forgoing pricey improvements to their space. 3. Existing product is not immune to submarket trends. Coinciding with the development tendencies, the CBD and SW submarkets have seen more inflation with purchases of existing product than the NW submarket. Because of this higher $/sf for the purchase, landlords need to charge higher rental rates to support recent acquisition prices. Again, to lure tenants to these expensive spaces, higher tenant improvement allowances are a tool owners have been effectively using. For the most part, NW submarket properties have been consistently filling up so the market is healthy, but there are significantly more “large availabilities� out there compared to the other submarkets. This risk to investors coupled with a large number of available product in the submarket, dictates a lower $/sf on purchases. The lower purchase price translates to
Graph 3: Northwest Avg. Full-Service vs. Avg. As-Is Full-Service Rental Rates
owners being able to ask for lower rental $45
rates than the CBD and SW in a submarket where cost-conscious tenants are already
$40
attracted.
WHAT DOES THIS MEAN FOR YOU?
Rental Rate ($/sf)
$35
Tenants: You should expect to keep paying more
$2.95
$30
$3.03 $2.63 $25
in rent than you would have a year ago, but you can expect a nominally larger
$20
tenant improvement allowance. Even with
increased
tenant
improvement
$15 Jan-13
funds, you will likely see the achievable
Apr-13
Jul-13
Average FS Rate
Oct-13
Jan-14
Apr-14
Average As-Is FS Rate
Jul-14
Oct-14
Average FS Rate Trendline
Jan-15
Apr-15
Jul-15
Oct-15
Average As-Is FS Rate Trendline
scope of work for your tenant finish is not necessarily going to be any greater than it
Graph 4: Southwest Avg. Full-Service vs. Avg. As-Is Full-Service Rental Rates
would have been a year ago. $45
Landlords: $40
There are underlying market forces that are pushing for more concessions
$35
save a couple dollars per square foot in upfront allowances or to charge more in rent over the life of the lease? Though revenue continues to increase, landlords
Rental Rate ($/sf)
in your leases. Is it more important to
$30
$6.33 $1.59
$2.92
$25
are having to pay more out of pocket to tenants.
$20
$15 Jan-13
Apr-13
Average FS Rate
Jul-13
Oct-13
Jan-14
Average As-Is FS Rate
Apr-14
Jul-14
Oct-14
Average FS Rate Trendline
Jan-15
Apr-15
Jul-15
Oct-15
Average As-Is FS Rate Trendline
23 2015 AQUILA Austin Market Report
7
3Q 2015 had another 339,890 sf of new product come online, which is a drop from the robust additions the previous two quarters posted (869,280 sf and 881,095 sf),
Net Absorption
but still significant nonetheless. With a strong 766,602 sf of positive absorption this quarter coupled with the lower delivery number, Austin saw its total vacancy rate drop to 10.36% from last quarter’s 10.77% rate. This quarter also saw Austin’s Class A full service asking rates increase to
766,602 SF
10.86% Direct & Sublease Vacancy Rate
$36.36, continuing the overall upward trend of higher rates in 14 out of the last 16 quarters.
$36.36 Avg. Class A Full Service Rental Rate
AUSTIN CITYWIDE
3Q UPDATE
8
The Texas State Capitol; Photo Courtesy of: Anthony Quintano
MAJOR LEASES SIGNED Leases signed this quarter over 25,000 sf:
CBD •
RetailMeNot renewed its existing 95,537 sf at 301 Congress and expanded by another 4,518 sf.
•
Cirrus Logic signed a 84,872 sf lease that helped kick off construction at Shoal Creek Walk. The company will be moving its entire office from 300 W 6th St to the new building upon delivery in 3Q 2017.
•
Gerson Lehrman Group renewed and expanded at 301 Congress. They now have a total of 41,803 sf.
•
AllClear ID renewed and expanded in 823 Congress to come to a total of 33,720 sf.
•
TechSpace entered the Austin market by leasing 28,190 sf in San Jacinto Center.
•
Spanning Cloud Apps signed a lease for 20,391 sf in 501 Congress.
SOUTHWEST •
Logitech renewed and expanded in Two Barton Skyway to occupy a total of 99,047 sf.
NORTHWEST •
Electronic Arts renewed 100,787 sf at 7700 Parmer Bldg C and expanded by another 74,681 sf within the same building.
•
Dun & Bradstreet Corporation signed a 61,471 sf lease at 7700 Parmer Bldg A.
•
Oracle expanded by 56,334 in 7700 Parmer Bldg B to add to their current 123,567 sf of space.
•
Motion Computing signed a lease for 32,319 sf in Park Centre Building II.
MOVING OUT The following large users left for new spaces or downsized.
PEARSON EDUCATION vacated 33,945 sf at Travesia Corporate Park III after determining to consolidate its four Austin locations into one.
SCOTT, DOUGLAS, MCCONNICO left 23,127 sf in 600 Congress and moved into 40,303 sf in Colorado Tower (also within the CBD).
SUBMARKET MAP CBD Central East/Northeast North Northwest Round Rock South/Southeast Southwest
23 2015 AQUILA Austin Market Report
9
SNAPSHOT: CAPITAL MARKETS MAJOR SALES TRANSACTIONS Multiple transactions involving large portfolios were on the books for 3Q 2015, with two such transactions occurring adjacent to each other (the Domain and Broadmoor portfolios). Additionally, two downtown buildings (501 Congress and 515 Congress) were split and sold by the same owner in separate transactions.
SOLD
WESTLAKE PLACE
SOLD
CANYON HILLS OFFICE CENTER
CAPITAL RIDGE
Market
SW
Market
NW
Market
SW
Class
B
Class
B
Class
A
Size (SF)
60,338
Size (SF)
68,604
Size (SF)
216,511
Buyer
Moore & Associates
Buyer
Gemini Rosemont Commercial Real Estate
Buyer
Miller Global Properties
Seller
Berns Commercial Properties
Seller
Rosemont Realty
Seller
Riverside Resources
Price
$11,900,000
Price
$11,331,389
Price
Undisclosed
Price/SF
$197.22
Price/SF
$165.17
Price/SF
Undisclosed
SOLD
515 Congress
10
SOLD
515 CONGRESS
SOLD
501 CONGRESS
Market
CBD
Market
CBD
Class
A
Class
A
Size (SF)
258,176
Size (SF)
122,551
Buyer
KBS
Buyer
AFIAA Swiss Foundation
Seller
Stream Realty Partners
Price
Undisclosed
Seller
Stream Realty Partners
Price/SF
Undisclosed
Price
$41,213,093
Price/SF
$336.29
Notes
Purchase of building and adjoining parking garage; total price including the parking garage was $79,100,000
MAJOR PORTFOLIOS
SOLD
AMBER OAKS CORPORATE CENTER
SOLD
DOMAIN PORTFOLIO
SOLD
BROADMOOR CAMPUS
Market
NW
Market
NW
Market
NW
Class
A
Class
A
Class
A
Size (SF)
644,344
Size (SF)
696,322
Size (SF)
1,095,848
Buyer
Menlo Equities
Buyer
TIER REIT
Buyer
Brandywine Realty Trust
Seller
CBRE Global Investors
Seller
RREEF
Seller
IBM Corp
Price
$116,000,000
Price
$201,100,000
Price
$338,632,000
Price/SF
$180.03
Price/SF
Undetermined
Price/SF
$309.01
Notes
Domain 3 & 4 (179,006 sf and 152,012 sf, respectively) were purchased outright, Domain 2 & 7 (143,331 sf and 221,973 sf, respectively) were acquired at 50% ownership, and 24 acres of developable land was also in the deal.
Notes
Buyer bought the remaining 50% interest in this 7 building portfolio. (They already bought a 50% interest last year.) Price includes purchase of Bldgs. A-G as well as an allocated value to excess land on Bldg. F parcel. Buyer plans to develop on the excess land in the future.
801 BARTON SPRINGS In August 2015, a partnership between Austin-based Generational Commercial Properties and Houston-based HTZ Investments purchased the 34,000 square foot site located at 801 Barton Springs in Austin, Texas. The new owners will construct an office building featuring 90,500 SF office and a 1,800 SF restaurant. Four stories of office will sit atop four and a half levels of parking and feature stunning views of the downtown Austin skyline and greenbelt. Learn more about this project at 801BartonSprings.com.
23 2015 AQUILA Austin Market Report
11
AUSTIN OFFICE DEVELOPMENT PIPELINE This timeline shows office projects over 30,000 SF that have either broken ground or will be breaking ground soon and the estimated year and quarter of delivery.
2015
2016
4Q
1Q
Research Park Plaza V
172,854 SF
Northwest
5th + Colorado
179,000 SF
CBD
Encino Trace II
158,137 SF
Southwest
Eastside Village
94,500 SF
East
Quarry Oaks III
137,615 SF
Northwest
Lakes at TechRidge - Bldg. C
39,400 SF
East
Lamar Central
131,722 SF
Central
NorthShore
23,592 SF
CBD
Aspen Lake Two
129,000 SF
Northwest 2Q 905 & 906 Broadmoor*
345,000 SF
Northwest
La Frontera Plaza
97,941 SF
Round Rock
Domain 5
74,787 SF
Northwest
*Already existing--coming to market 2Q 2016
3Q Braker Point III†
195,230 SF
Northwest
The Diamond Building at Mueller
37,305 SF
East
†Already existing--coming to market 3Q 2016 4Q Domain 8
12
255,000 SF
Northwest
2017
planned 1Q
500 W 2nd
489,404 SF
Future Developments CBD
2Q 801 Barton Springs
90,500
South
3Q Shoal Creek Walk
218,432 SF
CBD
10721 Domain Dr.
308,000 SF
Northwest
310 Comal
37,500 SF
East
405 Colorado
TBD SF
CBD
604 W 6th Street
31,035 SF
CBD
Amber Oaks Phase I
90,300 SF
Northwest
Amber Oaks Phase II
90,300 SF
Northwest
Amber Oaks Phase III
45,000 SF
Northwest
Aspen Lake Three
128,700 SF
Northwest
Cityline at MLK
150,000 SF
East
Four Points Centre Building 3
250,000 SF
Northwest
Four Points Centre Building 4
80,000 SF
Northwest
Frontera Ridge
400,000 SF
Round Rock
Lantana Ridge I
87,500 SF
Southwest
Lantana Ridge II
87,500 SF
Southwest
Mueller Market District
2,000,000 SF
East
Novare/Post Office
TBD SF
CBD
Paloma Ridge C
112,500 SF
Northwest
Plaza Saltillo
125,000 SF
East
Rainey Gateway
355,000 SF
CBD
Regency Park
90,000 SF
Southwest
Rollingwood Center III
107,000 SF
Southwest
St. Elmo
225,000 SF
South
The Backyard - Bldgs. B, J, & H
171,450 SF
Southwest
The Lakes at TechRidge - Bldg. A
48,800 SF
East
The Lakes at TechRidge - Bldg. B
48,800 SF
East
The Park @ Mueller
116,000 SF
East
The Terrace 3
203,130 SF
Southwest
The Terrace 4
285,663 SF
Southwest
The Terrace 5
218,809 SF
Southwest
The Waterfront
625,000 SF
South
Third + Shoal
338,279 SF
CBD
Waller Creek Center
325,000 SF
CBD
23 2015 AQUILA Austin Market Report
13
CENTRAL BUSINESS DISTRICT
232,375 SF Net Absorption
7.83% Direct & Sublease Vacancy Rate
$44.17/SF Avg. Class A Full Service Rental Rate
3Q UPDATE Vacancy rates fell dramatically across all
dropped from an already low 8.03% even
classes of buildings in the CBD from 2Q 2015
further to 6.32%. To highlight how much
to this quarter, dropping 237 basis points
the CBD submarket has tightened over the
from 10.20% to 7.83%. This was mirrored
course of a year, the vacancy rate of the
in our competitive set of buildings (Class
competitive set of buildings in 3Q 2014 was
A buildings located in, or near, the core
9.70% with 639,036 less sf of rentable space.
of downtown), in which the vacancy rate
14
Lobby at 301 Congress; Photo courtesy of Commonwealth Partners
Class A asking full service rental rates climbed for the overall
There were not any new deliveries this quarter in the CBD,
CBD submarket, increasing from $41.90/sf to $44.17/sf.
but Shoal Creek Walk broke ground and is projected to be
With the exception of last quarter's anomalous drop, rental
completed by 3Q 2017. This development will have 218,432 sf of leasable office space and is already 39% preleased to Cirrus Logic. Two new buildings – 5th + Colorado (179,000
TO EMPHASIZE THE DEMAND FOR CBD OFFICE SPACE, THE ASKING FULL SERVICE RENTAL RATE IN 3Q 2014 WAS $45.13/SF FOR THE COMPETITIVE SET, OVER $3.50 LESS THAN IT IS TODAY.
sf, 26% preleased) and NorthShore (23,592 sf, 100% preleased) – should be completed in 1Q 2016 and 500 W 2nd (489,404 sf, 42% preleased) is on track to be delivered 1Q 2017. Only two existing buildings have blocks of available space above 20,000 sf this quarter, down from six buildings last
rates have continuously grown since 2Q 2014. The 3Q 2015 value continues this trend. The competitive set of buildings saw a fourteenth consecutive quarter of positive change in this category, swelling almost a full dollar to $48.70/sf from last quarter’s $47.74/sf. Again, to emphasize the demand for CBD office space, the asking full service rental rate in
quarter. The projects in development are also slowly losing large blocks of space as more leases are being signed in these buildings. As the CBD continues to draw users and businesses are expanding, this is a limiting scenario for companies looking to grow downtown or move into the CBD.
3Q 2014 was $45.13/sf for the competitive set, $3.57/sf less than it is today.
23 2015 AQUILA Austin Market Report
15
CBD BY THE NUMBERS CBD SUBMARKET Net Absorption*
Direct & Sublease Vacancy Rate
Average Class A Full Service Rental Rate
1,045,081
6,826
12.00%
$41.61
1,032,112
17,164
11.81%
$41.45
9,084,414
1,021,461
(13,728)
11.96%
$40.88
9,252,285
1,041,014
153,098
11.90%
$41.39
2014 Q4
9,252,285
802,517
227,661
9.44%
$43.13
2015 Q1
9,768,770
1,135,835
139,236
12.81%
$43.83
2015 Q2
9,809,755
870,240
291,638
10.20%
$41.90
2015 Q3
9,809,755
672,222
232,375
7.83%
$44.17
Quarter
Net Rentable Area
Direct Available SF
2013 Q4
9,084,414
2014 Q1
9,084,414
2014 Q2 2014 Q3
Numbers based on CBRE statistics.
* Absorption includes sublease space.
NET ABSORPTION 350,000
1,200,000
12%
300,000
1,000,000
10%
250,000
800,000
8%
600,000
6%
400,000
4%
93% 92% 91% 90%
200,000
89%
150,000
88% 87%
100,000
86%
50,000
200,000 0
2%
2013 Q4
2014 Q1
Direct Available SF
2014 Q2
2014 Q3
2014 Q4
Sublease Available SF
2015 Q1
2015 Q2
2015 Q3
2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3
0%
(50,000)
Direct & Sublease Vacancy Rate
18%
$44.00
15%
$43.00
12%
$42.00
9%
$41.00
6%
$40.00
3%
$39.00
0%
Average Class A Full Service Rental Rate
16
Direct & Sublease Vacancy Rate
Vacancy Rate
Rental Rate
VACANCY RATES VS. RENTAL RATES $45.00
85%
0
84% 83%
Net Absorption*
Direct & Sublease Occupancy Rate
Occupancy Rate
14%
Absorption (SF)
1,400,000
Vacancy Rate
Availability (SF)
AVAILABLE SF VS. VACANCY RATE
AUSTIN CBD OFFICE RENTAL RATE PROJECTIONS $55 3% Job Growth
Full Service Rental Rates ($)
$50
$45
1% Job Growth
$40
$35
$30
$25
$20
$15 2004
2005
2006
2007
2008
2009
Historic Rental Rate
2010
2011
AQUILA Model
2012
2013
2014
1% Job Growth
2015
2016
2017
3% Job Growth
AUSTIN CBD OFFICE VACANCY RATE PROJECTIONS 35%
11.0
Shoal Creek Walk 500 W 2nd
30%
10.5
25%
10.0
20%
9.5
15%
9.0 1% Job Growth
10%
Market Size (Millions of SF)
Total Vacancy Rate (%)
5th + Colorado NorthShore
8.5 3% Job Growth
5%
0% 2004
8.0
7.5 2005 Market Size
2006
2007
2008
2009
Historic Vacancy Rate
2010
2011
2012
AQUILA Model
2013
2014
1% Job Growth
2015
2016
2017
3% Job Growth
23 2015 AQUILA Austin Market Report
17
CBD DEVELOPMENT & LARGE AVAILABILITY Str
eet
Shoa Creekl Walk
604 W Sixth .
5th & West
Nov Post Oare/ ffice
N. L
am
ar B
lvd
.
5th
T Indepe he ndent third shoal + the a ustin Green proper 500 W. 2 nd reside water ntial tower Nor thsho re
Alof elemet & nt 6th
Hotel Za Gable za/ s
5th Color + ado
801 Ba r Sprin ton gs
18
Ces
ar C
hav
ez S
t
Walle cree cente k r
gre Con
ee Str
d.
1st
gs R
S.
Spr in
t
ss A
ve.
San Ja c Cente into r
ton
et
40 Color 5 ado
On Congr e e Plaza ss
Bar
Stre
Aus Ameri tin State can sman
R
OFFICE UNDER CONSTRUCTION HOTEL/RESIDENTIAL UNDER CONSTRUCTION FUTURE DEVELOPMENTS EXISTING AVAILABILITIES
t.
Building
Available SF
Max. Contiguous
One Congress Plaza
72,848 SF
23,479 SF
San Jacinto Center
40,207 SF
20,286 SF
20,000 SF + of available space
OFFICE PROJECTS UNDER CONSTRUCTION 11th
Hy house att hote
Stre e
t
% Preleased
Total SF
Est. Delivery
42%
489,404 SF
1Q 2017
5th + Colorado
26%
179,000 SF
1Q 2016
NorthShore
100%
23,592 SF
1Q 2016
Shoal Creek Walk
39%
218,432 SF
3Q 2017
Building 500 W 2nd
l
hol & hot iday Inn el ind igo
OTHER PROJECTS UNDER CONSTRUCTION Units/Rooms 5th & West
Est. Delivery
Max. Contiguous
154 Units
4Q 2017
422 Rooms
3Q 2017
1,066 Rooms
3Q 2017
Hotel Indigo/Holiday Inn Express
300 Rooms
4Q 2015
Hyatt House Hotel
190 Rooms
4Q 2016
436 Units
1Q 2017
250 Rooms, 120 Units
2Q 2017
Aloft & Element Fairmont
NorthShore The Austin Proper
FUTURE/PLANNED DEVELOPMENTS Units/Rooms
Fairm o Hotel nt
er Raine k y G a teway r
70 Raine y
LARGE BLOCKS OF CONTIGUOUS AVAILABILITY
405 Colorado
Est. Delivery
Max. Contiguous
TBD
Office
604 W 6th Street
31,035 SF
Office
801 Barton Springs
90,500 SF
Office
Austin American Statesman
TBD
Office
Novare/Post Office
TBD
Office
Rainey Gateway
355,000 SF
Office
Third + Shoal
338,279 SF
Office
Waller Creek Center
325,000 SF
Office
164 Units
Multifamily
TBD
Multifamily
The Independent
370 Units
Multifamily
Hotel Zaza/Gables
226 Units, 160 Rooms
Hotel/Multifamily
70 Rainey Green Water Residential Tower
23 2015 AQUILA Austin Market Report
19
CBD CLASS A AVAILABILITY SUMMARY SUBLEASE SPACE AVAILABLE SPACE
3
3
3 29
2
28
2
27
23
2
25
25
2
24
24
2
23
23
2
22
2
22
22
31,051 SF
22
21
21
21
32,603 SF
21
21
2
20
20
20
32,603 SF
20
20
2
32,603 SF
19
19
1
7,142 SF
1,385 SF
19
19
18
18
18
33,931 SF
18
18
19,000 SF
18
8,335 SF
1
17
17
17
17
31,822 SF
17
17
19,000 SF
17
8,936 SF
1
16
16
16
16
31,822 SF
16
16
8,000 SF
16
1
15
15
15
15
31,530 SF
15
1,223 SF
15
19,000 SF
15
1
14
14
14
14
23,500 SF
14
6,914 SF
14
19,000 SF
14
1
13
13
13
13
13
13
19,000 SF
13
1
12
12
12
12
12
12
19,000 SF
12
1
11
11
11
11
11
11
11
1
10
10
10
10
10
10
10
1
9
9
9
9
9
9
9
9
8
8
8
8
8
7
7
7
7
7
6
6
6
6
6
1,421 SF 7,081 SF
6,796 SF
1,455 SF
4,000 SF
8
8
8
7
7
7
6
6
6
5
5
5
5
5
5
5
5
5
4
4
4
4
4
4
4
4
4
3
3
1620 SF
3
3
3
3
3
3
6,593 SF
2
2
4,669 SF
2
6,432 SF
2
2
2
2
2
3,545 SF
2
7,887 sf
1
1
1
2,195 SF
1
1
1
1
1
8,860 SF
1
10,712 SF
20
26
22
19
2,809 SF
2
26
17,218 SF
18,922 SF
3
100 Congress 100 Congress Ave.
300 W 6th 300 W 6th St.
301 Congress 301 Congress Ave.
400 W 15th 400 W 15th St.
500 W 2nd 500 W 2nd St.
501 Congress 501 Congress Ave.
515 Congress 515 Congress Ave.
5th + Colorado 201 W 5th St.
600 Congress 600 Congress Ave.
411,536 SF 22 Floors 93% Leased $55.65 Gross
454,225 SF 23 Floors 99% Leased $54.42 Gross
418,338 SF 22 Floors 95% Leased $51.45 Gross
281,196 SF 17 Floors 97% Leased $40.42 Gross
489,404 SF 29 Floors 42% Pre-Leased $52.00 Gross
122,747 SF 5 Floors 85% Leased $47.23 Gross
258,176 SF 26 Floors 96% Leased $47.95 Gross
179,000 SF 18 Floors 19% Pre-Leased $50.20 Gross
503,951 SF 32 Floors 94% Leased $48.80 Gross
33 32
32
31
31
30
30
30
30
29
29
29
29
28
28
28
28
27
27
27
27
26
26
26
26
25
25
25
25
24
24
24
24
23
23
23
23
22
22
22
22
21
21
21
21
21
20
20
20
20
20
20
20
19
19
19
19
19
19
19
18
18
18
18
18
17
17
17
17
17
16
16
16
16
16
16 15
21
16,711
8,881 SF
18
18
17
17
16
16
15
15
15
15
15
15
15
14
14
14
14
14
14
14
13
13
13
13
13
13
13
12
12
12
12
12
12
11
11
11
11
11
10
10
10
10
9
9
9
8
8
7
7
6
465 SF
14
21,218 SF
13
19,921 SF
13
21,218 SF
12
12
20,286 SF
12
21,218 SF
11
11
11
11
21,218 SF
10
10
10
1,761 SF
10
10
21,218 SF
9
9
9
9
23,142 SF
9
9
21,218 SF
8
8
8
8
8
5,818 SF
8
8
5,004 SF
7
7
7
7
7
7,432 SF
7
7
6
3,659 SF
6
6
6
6
6
6
6
5
5
875 SF
5
5
5
5
5
5
5
4
4
963 SF 3,520 SF
4
4
4
4
4
4
4
3
846 SF 1,716 SF
3
3
3
3
3
3
3
2
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
3
5,275 SF
2
1
10,821 SF
7,322 SF
23,479 SF
11,216 SF
816 Congress 816 Congress Ave.
Austin Centre 701 Brazos St.
Chase Tower 221 W 6th St.
Colorado Tower 303 Colorado St.
Frost Bank Tower 401 Congress Ave.
IBC Bank Plaza 500 W 5th St.
One Congress Plaza 111 Congress Ave.
San Jacinto Center 98 San Jacinto Blvd.
Shoal Creek Walk 835 W 6th St.
434,081 SF 20 Floors 96% Leased $45.59 Gross
326,335 SF 16 Floors 95% Leased $43.88 Gross
389,503 SF 21 Floors 96% Leased $48.90 Gross
373,334 SF 30 Floors 100% Leased $48.49 Gross
535,078 SF 33 Floors 98% Leased $57.25 Gross
194,749 SF 13 Floors 100% Leased $43.60 Gross
518,385 SF 30 Floors 86% Leased $46.69 Gross
406,279 SF 21 Floors 90% Leased $50.15 Gross
218,432 SF 14 Floors 42% Pre-Leased $49.50 Gross
23 2015 AQUILA Austin Market Report
AUSTIN, TX
21
22
7700 Parmer; Photo by Third Eye Photography
The vacancy rate for all classes of buildings in the Northwest (NW) submarket fell from 11.56% to 9.96%. This is in contrast to our competitive set of buildings (newer
Net Absorption
suburban office buildings that typically have structured parking, amenities such as conference rooms, workout facilities and/or delis*), which rose from 9.00% last quarter to 10.64% this quarter. The conflicting trajectory of the vacancy rates between our competitive set and the overall
276,295 SF
9.96% Direct & Sublease Vacancy Rate
Northwest submarket data can be explained by the fact that the overall numbers come from CBRE’s data which does not take into account Paloma Ridge A & B – two Class A buildings that delivered this quarter.
$33.26/SF Avg. Class A Full Service Rental Rate
*See full list of competitve set buildings in the appendix.
NORTHWEST SUBMARKET
3Q UPDATE
23 2015 AQUILA Austin Market Report
23
NORTHWEST SUBMARKET UPDATE
UFCU Plaza; Photo by: Scott Mason Photography
The Paloma Ridge buildings combine for 212,400 sf of new
Asking rental rates across all Class A buildings increased
rental space that is 100% vacant. The additional unleased
for the seventh straight quarter, jumping from $32.74/sf
space in the competitive set of buildings raises the vacancy
to $33.26/sf. The competitive set decreased this quarter,
rate from 9.19% without Paloma Ridge to 10.64% with
falling to $33.55/sf from $33.83/sf. Six competitive
Paloma Ridge included in the set.
set buildings comprising of almost 400,000 sf in net
In addition to the vacancy rate discrepancy in the NW submarket, there is also a difference in the absorption rates between our competitive set and all classes of buildings in the CBRE data.
When a building delivers,
CBRE does not consider the leased space absorbed until the tenant moves in. We do not consider the leased space available in our competitive set, thereby treating the newly supplied leased space as area that has been absorbed by new tenants. Over 325,000 sf of new office space has been built in the NW in 2015, much of which was occupied this
rentable area – all represented by the same brokerage firm – drastically reduced asking rates this quarter by an average of $8.85/sf, causing the overall asking rate of the competitive set to drop. If these six buildings had the same asking rate as last quarter, then the overall competitive set would be at $33.81/sf. Additionally, there are 23 buildings (all but three in the competitive set) with over 20,000 sf available this quarter, jumping from seventeen last quarter. These sizable vacancies in buildings could be prompting landlords to lower their asking rates.
quarter. Looking back at the competitive set absorption
Other than Paloma Ridge in the Far Northwest micromarket,
values, the previous two quarters had already accounted
there were not any new deliveries this quarter. Domain 8
for these new tenants.
kicked off construction this quarter and will bring 255,000
24
NORTHWEST MICRO MARKETS Arboretum/Domain Far Northwest Shepherd Mountain
sf to the Arboretum/Domain
The Shepherd Mountain
micromarket
micromarket continues its
in
December
of 2016. Four new buildings should be open for tenants in 4Q 2015: Domain 1 (124,557 sf - December of 2015), Research Park Plaza V (172,854 sf –
ASKING RENTAL RATES ACROSS ALL CLASS A BUILDINGS INCREASED FOR THE SEVENTH STRAIGHT QUARTER, JUMPING FROM $32.74/SF TO $33.26/SF.
auspicious trend in both vacancy rates and asking rental rates. The asking rental rates for Class A buildings
increased
a
November 2015), Aspen Lake
dime from $34.45/sf last
Two (129,000 sf – October
quarter.
The
vacancy
2015), and Quarry Oaks III (137,615 sf – December 2015).
rate decreased from 12.41% to 12.26%. Both are subtle
At the close of 3Q 2015, both Domain 1 and Research Park
changes, but still in the positive direction.
Plaza V are 0% leased while Quarry Oaks III is 100% leased to Bazaarvoice and Aspen Lake Two is 100% leased to Q2.
The Far Northwest micromarket welcomed Paloma Ridge A & B this quarter. The 212,400 sf of unfilled space raised
The Arboretum/Domain micromarket’s vacancy rate went
the vacancy rate from last quarter’s 10.69% up to 15.48%.
up and asking rental rate went down from last quarter,
Subtracting out Paloma Ridge, the micromarket actually
though both values are still considered strong overall. The
would have decreased its vacancy rate from last quarter to
asking rental rate for this micromarket could actually be
10.61%. Paloma Ridge also affected the asking rental rates
$34.90/sf (an increase over last quarter’s $34.77/sf rate)
for the Far Northwest micromarket. Instead of a $31.65/
if the six aforementioned buildings with dramatic asking
sf asking rate (a cent lower than last quarter), the actual
rate decreases had stayed the same. Instead, the asking
asking rate is $31.42/sf. It would not be surprising to see
rental rate for Class A buildings lowered to $34.38/sf.
these trends continue since Research Park Plaza V is set
Additionally, the vacancy rate of 7.19% is still very healthy
to be delivered next quarter and is 100% vacant as of the
and supports new development underway in the area.
end of 3Q 2015.
23 2015 AQUILA Austin Market Report
25
NORTHWEST BY THE NUMBERS NORTHWEST OVERALL SUBMARKET PERFORMANCE Quarter
Net Rentable Area
Direct Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Average Class A Full Service Rental Rate
2013 Q4
16,747,039
1,745,316
158,788
10.82%
$27.33
2014 Q1
16,747,039
1,635,834
102,128
10.21%
$29.20
2014 Q2
16,697,337
1,493,813
(12,658)
10.02%
$29.89
2014 Q3
16,697,337
1,566,544
(103,939)
10.64%
$30.65
2014 Q4
16,817,337
1,540,054
137,486
10.46%
$30.83
2015 Q1
17,154,310
1,879,975
98,887
11.65%
$32.06
2015 Q2
17,269,310
1,819,734
116,457
11.56%
$32.74
2015 Q3
17,269,310
1,665,124
276,295
9.96%
$33.26
* Absorption includes sublease space.
Numbers based on CBRE statistics.
NET ABSORPTION 15%
2,500,000
6%
1,000,000
500,000
3%
0
0%
Absorption (SF)
Availability (SF)
9%
1,500,000
Vacancy Rate
12%
2,000,000
300,000
94%
250,000
93%
200,000
92%
150,000
91%
100,000
90%
50,000
89%
(50,000) 2013 Q4
2014 Q1
Direct Available SF
2014 Q2
2014 Q3
2014 Q4
Sublease Available SF
2015 Q1
2015 Q2
Direct & Sublease Vacancy Rate
15%
$33.00
13%
$31.00
11%
$29.00
9%
$27.00
7%
5%
2014 Q2
2014 Q3
2014 Q4
Average Class A Full Service Rental Rate
26
2015 Q1
2015 Q2
2015 Q3
Direct & Sublease Vacancy Rate
Vacancy Rate
Rental Rate
$35.00
2014 Q1
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
87% 86%
(150,000)
VACANCY RATES VS. RENTAL RATES
2013 Q4
2013 Q4
(100,000)
2015 Q3
$25.00
88%
0
85% Net Absorption*
Direct & Sublease Occupancy Rate
Occupancy Rate
AVAILABLE SF VS. VACANCY RATE
NORTHWEST SUBMARKET OFFICE RENTAL RATE PROJECTIONS
Full Service Rental Rates ($)
$40
3% Job Growth
$35
1% Job Growth
$30
$25
$20
$15 2004
2005
2006
2007
2008
Historic Rental Rate
2009
2010
2011
AQUILA Model
2012
2013
2014
1% Job Growth
2015
2016
2017
3% Job Growth
NORTHWEST SUBMARKET OFFICE VACANCY RATE PROJECTIONS Braker Pointe III
Quarry Oaks III Domain 1 Research Park Plaza V Aspen Lake Two
Total Vacancy Rate (%)
25%
Domain 8
905 & 906 Broadmoor Domain 5
20.0
18.3
20%
16.7
1% Job Growth 15%
15.0
10%
3% Job Growth
5%
0% 2004
13.3
Market Size (Millions of SF)
30%
11.7
10.0 2005
2006
2007
Market Size
2008
2009
Historic Vacancy Rate
2010
2011
2012
AQUILA Model
2013
2014
1% Job Growth
2015
2016
2017
3% Job Growth
23 2015 AQUILA Austin Market Report
27
Round Rock
Cedar Park 12 11
23
5 3 4 1 2
17
21 14
19 18
7
LAKE TRAVIS
16
DOMAIN
13
6
9
Shepherd mountain
8
Arboretum
20
10
22 15
NORTHWEST AUSTIN LARGE OFFICE AVAILABILITY 20,000 SF + of available space Building
28
Direct Available SF
Sublease Available SF
Total Available SF
1
7700 Parmer - Bldg B
31,438 SF
-
31,438 SF
2
7700 Parmer - Bldg C
23,693 SF
-
23,693 SF
3
Amber Oaks F
78,034 SF
-
78,034 SF
4
Amber Oaks G
9,923 SF
14,730 SF
24,653 SF
5
Amber Oaks J
6,245 SF
33,147 SF
39,392 SF
6
Atrium Office Centre
40,364 SF
-
40,364 SF
7
Domain 3
-
20,816 SF
20,816 SF
8
Domain 7
31,000 SF
-
31,000 SF
9
Ladera Bend 3
-
56,196 SF
56,196 SF
10
Lakewood Center I
-
45,020 SF
45,020 SF
11
Paloma Ridge A
106,200 SF
-
106,200 SF
12
Paloma Ridge B
106,200 SF
-
106,200 SF
13
Park Centre Bldg. 3
57,562 SF
-
57,562 SF
14
Research Park Number Five
39,237 SF
-
39,237 SF
15
Plaza 7000
24,405 SF
-
24,405 SF
16
Prominent Pointe I
24,342 SF
-
24,342 SF
17
Research Park Place 8
33,518 SF
-
33,518 SF
18
Riata Corporate Park Bldg 4
93,737 SF
-
93,737 SF
19
Riata Corporate Park Bldg 5
23,783 SF
-
23,783 SF
20
River Place Corp Park Bldg 7
-
21,477 SF
21,477 SF
21
Tech Center 2
22,295 SF
-
22,295 SF
22
UFCU Plaza
25,161 SF
-
25,161 SF
23
Travesia Corporate Park 1-3
33,555 SF
33,945 SF
67,500 SF
Pflugerville
NORTHWEST AUSTIN OFFICE DEVELOPMENT Building
Total SF
Percent Preleased
Estimated Delivery
Status
1
Quarry Oaks III
137,615
100%
4Q 2015
Under Construction
2
Research Park Plaza V
172,854
0%
4Q 2015
Under Construction
3
Domain 1
124,557
0%
4Q 2015
Under Construction
4
Aspen Lake Two
129,000
100%
4Q 2015
Under Construction
5
Domain 5
74,787
0%
1Q 2016
Under Construction
6
905 & 906 Broadmoor*
345,000
0%
2Q 2016
Coming to Market
7
Braker Point III†
195,230
0%
3Q 2016
Coming to Market
8
Domain 8
291,000
0%
3Q 2017
Under Construction
9
10721 Domain Dr
308,000
0%
Planned
Planned
10
Amber Oaks Phase I
90,300
0%
Planned
Planned
11
Amber Oaks Phase II
90,300
0%
Planned
Planned
12
Amber Oaks Phase III
45,000
0%
Planned
Planned
13
Aspen Lake Three
128,700
0%
Planned
Planned
14
Four Points Centre Bldg. 3
250,000
0%
Planned
Planned
15
Four Points Centre Bldg. 4
80,000
0%
Planned
Planned
16
Paloma Ridge C
112,500
0%
Planned
Planned
*Already existing - Coming to market 2Q 2016
†Already existing - Coming to market 3Q 2016
Under Construction
Planned Round Rock
Cedar Park 16
13 4
Pflugerville
1011 12
2
LAKE TRAVIS
14 15
1
Arboretum
3 8 7 9 5
DOMAIN
6
Shepherd mountain 23 2015 AQUILA Austin Market Report
29
30
Dimensional Place, Building One; Photo courtesy of: Roy Niswanger
3Q UPDATE
SOUTHWEST SUBMARKET
121,673 SF Net Absorption
12.29% Direct & Sublease Vacancy Rate
$35.03/SF Avg. Class A Full Service Rental Rate
23 2015 AQUILA Austin Market Report
31
SOUTHWEST SUBMARKET UPDATE
Encino Trace; Photo courtesy of Brandywine Realty Trust
Across all classes of buildings, the Southwest (SW)
of these leased spaces are considered vacant by CBRE’s
submarket vacancy rate continued to be higher than
data until the tenants move in, but we do not consider
its traditional levels, changing from 12.21% last quarter
these spaces as available in our competitive set. In fact,
to 12.29% this quarter. As mentioned in last quarter’s
our competitive set of SW buildings decreased in vacancy
report, this larger value is likely due to the methodology
from 8.25% to 7.77%.
CBRE employs when collecting vacancy data. They count leased space that has not been moved into as vacant, hence “available.” Since we use CBRE’s data for the overall market, this contradicts the dataset for the competitive set buildings (newer suburban office buildings that typically have structured parking, amenities such as conference rooms, workout facilities, and/or delis). Capital Ridge, Rollingwood I & II and 3700 San Clemente all delivered last quarter in the SW submarket and the tenants are still in the process of occupying. Capital Ridge is fully leased by Apple, Rollingwood has 206,709 sf of 214,587 sf leased, and 3700 San Clemente has 38% of 249,870 sf leased. All
32
The asking rental rates for all Class A buildings in the SW submarket increased by $1.27/sf this quarter, jumping up from $33.76/sf to $35.03/sf. The competitive set saw an increase in asking rental rates for the fifteenth consecutive quarter, moving from $37.55/sf to $37.61/sf – an $8/sf increase over the last fourteen quarters. Encino Trace I delivered this quarter, adding 161,606 sf to the submarket. This building is 100% preleased with ARM as its major tenant. Encino Trace II will deliver next quarter. The 158,137 sf building is 15% preleased. No additional major projects are under construction currently in SW Austin. We expect
SOUTHWEST MICRO MARKETS Far Southwest Near Southwest
to see the vacancy rate continue to fall after a spike next quarter from the mostly available Encino Trace II as the SW submarket remains a big draw for tenants due to its unique views, access and proximity to downtown,
Vacancy rates declined
THE COMPETITIVE SET SAW AN INCREASE IN ASKING RENTAL RATES FOR THE FIFTEENTH CONSECUTIVE QUARTER, MOVING FROM $37.55/SF TO $37.61/ SF – AN $8/SF INCREASE OVER THE LAST FOURTEEN QUARTERS.
sharply
this
quarter
in the Far Southwest micromarket, to
6.71%
abnormally
down from
an
high
(for
this region) 8.85%. The
desirable neighborhoods and a
delivery of the 100%
rich talent-base.
leased Encino Trace I
The Near Southwest micromarket saw its overall vacancy rate climb from 7.26% to 9.61%, but direct available space actually decreased from last quarter. The recently completed Rollingwood I was 100% preleased to EZCorp, which put 102,108 sf back on the market for sublease. This large sublease is skewing the total vacancy rate for this micromarket. Mimicking the trend for the competitive set,
aided in lowering this rate so dramatically. Last quarter a number of new buildings were delivered, some of which were not 100% preleased, causing a surge upwards in the vacancy rate. Absorption is now catching up with this vacancy. The full service asking rental rate dropped $0.08/ sf to $36.31/sf this quarter breaking a streak of 13 quarters of rising rental rates.
the Near Southwest micromarket has seen asking rental rates increase every quarter since 2Q 2011, a staggering 18 quarters of consecutive escalations.
23 2015 AQUILA Austin Market Report
33
SOUTHWEST OFFICE BY THE NUMBERS SOUTHWEST OVERALL SUBMARKET PERFORMANCE Quarter
Net Rentable Area
Direct Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Average Class A Full Service Rental Rate
2013 Q4
9,382,293
734,638
(204,816)
8.42%
$32.50
2014 Q1
9,382,293
703,789
(22,457)
8.66%
$31.19
2014 Q2
9,382,293
853,812
(150,296)
10.26%
$30.72
2014 Q3
9,458,793
653,880
164,619
9.24%
$31.38
2014 Q4
9,418,793
640,998
42,081
8.41%
$34.87
2015 Q1
9,446,430
589,875
66,172
7.98%
$34.35
2015 Q2
10,109,725
1,070,609
182,561
12.21%
$33.76
2015 Q3
10,257,625
1,192,565
121,673
12.29%
$35.03
Numbers based on CBRE statistics.
* Absorption includes sublease space.
NET ABSORPTION 14%
1,400,000
12%
1,200,000
8%
600,000
6%
400,000
4%
200,000
2%
0
0% 2013 Q4
2014 Q1
Direct Available SF
2014 Q2
2014 Q3
2014 Q4
Sublease Available SF
2015 Q1
2015 Q2
2015 Q3
$36.00
16%
$35.00
14%
$34.00
12%
$33.00
10%
$32.00
8%
$31.00
6%
$30.00
4%
$29.00
2% 0% 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3
34
Direct & Sublease Vacancy Rate
Vacancy Rate
Rental Rate
VACANCY RATES VS. RENTAL RATES
Average Class A Full Service Rental Rate
93%
200,000
92%
150,000
91%
100,000
90%
50,000
89%
0 (50,000)
88% 2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
2015 Q3
87%
(100,000)
86%
(150,000)
85%
(200,000)
84%
(250,000)
Direct & Sublease Vacancy Rate
$28.00
Absorption (SF)
Availability (SF)
800,000
Vacancy Rate
10%
1,000,000
250,000
83% Net Absorption*
Direct & Sublease Occupancy Rate
Occupancy Rate
AVAILABLE SF VS. VACANCY RATE
SOUTHWEST SUBMARKET OFFICE RENTAL RATE PROJECTIONS $40
3% Job Growth
Full Service Rental Rates ($)
$35 1% Job Growth $30
$25
$20
$15 2004
2005
2006
2007
2008
Historic Rental Rate
2009
2010
AQUILA Model
2011
2012
1% Job Growth
2013
2014
2015
2016
2017
3% Job Growth
SOUTHWEST SUBMARKET OFFICE VACANCY RATE PROJECTIONS 25%
12.0
Encino Trace II
10.6
15%
9.2
1% Job Growth
10%
7.8 3% Job Growth
5%
0% 2004
Market Size (Millions of SF)
Total Vacancy Rate (%)
20%
6.4
5.0 2005
2006
2007
Market Size
2008
2009
Historic Vacancy Rate
2010
2011 AQUILA Model
2012
2013
2014
1% Job Growth
2015
2016
2017
3% Job Growth
23 2015 AQUILA Austin Market Report
35
4
West Lake Hills Bee cave
1
Barton Creek TH SOU TP ES W
3
K
W
Y
6
8
2
7 5
SOUTHWEST AUSTIN LARGE OFFICE AVAILABILITY 20,000 SF + of available space Building
36
Direct Available SF
Sublease Available SF
Total Available SF 24,478 SF
1
CityView Center
-
24,478 SF
2
Rialto II
1,588 SF
36,421 SF
38,009 SF
3
Rollingwood Center I & II
7,878 SF
109,812 SF
117,690 SF
4
3700 San Clemente
51,934 SF
-
51,934 SF
5
The Park on Barton Creek 1
-
42,527 SF
42,527 SF
6
The Summit 1-5
52,939 SF
-
52,939 SF
7
The Terrace 6
22,771 SF
-
22,771 SF
8
The Terrace 7
1,239 SF
19,000 SF
20,239 SF
SOUTHWEST AUSTIN OFFICE DEVELOPMENT Building
Total SF
Percent Preleased
Estimated Delivery
Status
1
Encino Trace II
158,137
15%
4Q 2015
Under Construction
2
The Backyard Buildings B, J, & H
171,450
0%
Planned
Planned
3
Lantana Ridge I
87,500
0%
Planned
Planned
4
Lantana Ridge II
87,500
0%
Planned
Planned
5
Regency Park
90,000
0%
Planned
Planned
6
Rollingwood Center III
107,000
0%
Planned
Planned
7
The Terrace 3
203,130
0%
Planned
Planned
8
The Terrace 4
285,663
0%
Planned
Planned
9
The Terrace 5
218,809
0%
Planned
Planned
Under Construction
Planned
West Lake Hills
2
Bee cave
Barton Creek TH SOU TP ES W
6
K
W
Y
3
7 9 8
4 1
5
23 2015 AQUILA Austin Market Report
37
SOUTHWEST CLASS A AVAILABILITY SUMMARY 4,901 SF
5
5
5
5
5
4
4
4
4
4
3
3
3
3
2
2
2
2
1
1
1
1
3
2,840 SF
11,073 SF
7,237 SF
5,988 SF 4,189 SF
4 3,240 SF
3
2
2
1
1
NSW
NSW
NSW
NSW
NSW
NSW
Barton Oaks Plaza I 901 S Mopac Expy
Barton Oaks Plaza II 901 S Mopac Expy
Barton Oaks Plaza III 901 S Mopac Expy
Barton Oaks Plaza IV 901 S Mopac Expy
Barton Oaks Plaza V 901 S Mopac Expy
One Barton Skyway 1501 S Mopac Expy
5 Floors 99,404 SF 92% Leased $41.68 Gross
5 Floors 116,368 SF 90% Leased $40.62 Gross
5 Floors 121,467 SF 94% Leased $39.66 Gross
5 Floors 112,000 SF 100% Leased $40.00 Gross
5 Floors 119,549 SF 95% Leased $39.80 Gross
4 Floors 195,324 SF 98% Leased $38.90 Gross
5 4
42,671 SF
4
4
3
42,369 SF
3
3
2
16,782 SF
2
2
1
33,214 SF
1
3,700 SF
19,402 SF
3
2
2 3,718 SF
1
3
2 2,587 SF
1,590 SF
FSW
FSW
FSW
FSW
FSW
FSW
Encino Trace I 5707 Southwest Pkwy
Encino Trace II 5707 Southwest Pkwy
Las Cimas I 804 Las Cimas Pkwy
Las Cimas II 807 Las Cimas Pkwy
Las Cimas III 805 Las Cimas Pkwy
Las Cimas IV 900 S Capital of Tx Hwy
4 floors 161,606 SF 100% Leased $34.50 Gross
4 floors 158,137 SF 15% Leased $34.50 Gross
3 Floors 85,000 SF 96% Leased $38.68 Gross
4 Floors 156,069 SF 88% Leased $39.83 Gross
4 Floors 157,418 SF 99% Leased $39.93 Gross
5 Floors 138,008 SF 98% Leased $40.97 Gross
51,534 37,416 SF
4
37,416 SF
3
27,276 SF
38
4
3
1
1
1,135 SF
5
5
4
4
3
3
3
3
2
7,704 SF
2
2
2
2
1
7,878 SF
1
1
1
1
52,934 SF
NSW
NSW
FSW
FSW
FSW
FSW
Rollingwood Center I 2500 Bee Caves Rd
Rollingwood Center II 2500 Bee Caves Rd
4 Floors 145,437 SF 100% Leased $41.00 Gross
2 Floors 69,150 SF 89% Leased $41.00 Gross
3600 San Clemente B 3600 N Capital of Tx Hwy 3 Floors 90,267 SF 100% Leased $40.55 Gross
3700 San Clemente 3700 N Capital of Tx Hwy 5 Floors 249,870 SF 79% Leased $41.00 Gross
3900 San Clemente 3900 N Capital of Tx Hwy 5 Floors 251,146 SF 100% Leased $38.93 Gross
The Summit at Lantana Bldg 300 7171 Southwest Pkwy 4 Floors 217,077 SF 76% Leased $36.84 Gross
1
7 6 5
5
5
4
4
4
4
4
4
3
3
3
3
3
3
2
2
2
2
2
2
1
1
1
1
1
1
NSW
NSW
NSW
FSW
FSW
FSW
Two Barton Skyway 1601 S Mopac Expy
Three Barton Skyway 1221 S Mopac Expy
Four Barton Skyway 1301 S Mopac Expy
Capital Ridge 320 Capital of Tx Hwy
Dimensional Place 1 6304 Bee Caves Rd
Dimensional Place 2 6300 Bee Caves Rd
4 Floors 195,639 SF 100% Leased $39.29 Gross
4 Floors 173,302 SF 100% Leased $39.20 Gross
5 Floors 222,580 SF 100% Leased $38.36 Gross
7 floors 216,511 SF 100% Leased $40.56 Gross
7 Floors 220,000 SF 100% Leased $36.42 Gross
5 Floors 156,000 SF 100% Leased $36.42 Gross
5
21,265 SF
5
4
21,262 SF
4
3
3
3
3
2
2
2
2
1
1
1
1
9,980 SF
3 2
6,162 SF
3 8,936 SF
1
2 1
NSW
NSW
NSW
FSW
FSW
FSW
Mira Vista 2705 Bee Caves Rd
The Park on Barton Creek One 3711 S Mopac Expy 5 floors 102,608 SF 100% Leased $37.83 Gross
The Park on Barton Creek Two 3711 S Mopac Expy 5 floors 102,587 SF 100% Leased $37.83 Gross
5000 Plaza on the Lake 5000 Plaza on the Lake Dr. 3 Floors 118,063 SF 95% Leased $41.07 Gross
Plaza on the Lake I 5001 Plaza on the Lake Dr. 3 Floors 122,530 SF 93% Leased $40.34 Gross
Plaza on the Lake II 4801 Plaza on the Lake Dr. 3 Floors 111,166 SF 100% Leased $41.46 Gross
3 Floors 121,147 SF 100% Leased $41.09 Gross
6
5,725 SF
6
5
5
5
9,716 SF
5
4
4
4
4
2,974 SF
4
3
3
3
3
2
2
2
2
1
1
1
1
6,354 SF
1,239 SF
3 2 4,356 SF
1
FSW
NSW
NSW
NSW
NSW
The Summit at Lantana Bldg 400 7171 Southwest Pkwy 4 Floors 220,218 SF 100% Leased $36.84 Gross
The Terrace I 2600 Via Fortuna
The Terrace II 2700 Via Fortuna
The Terrace VI 2901 Via Fortuna
The Terrace VII 2801 Via Fortuna
5 Floors 115,460 SF 94% Leased $38.40 Gross
5 Floors 114,635 SF 100% Leased $38.53 Gross
6 Floors 196,717 SF 88% Leased $43.12 Gross
6 Floors 196,215 SF 99% Leased $43.09 Gross
SUBLEASE SPACE AVAILABLE SPACE
23 2015 AQUILA Austin Market Report
AUSTIN, TX
39
40
THE APPENDIX Long Term Performance of Submarkets Long Term Performance: CBD vs. Suburban Central Business District Competitive Set Performance Competitive Set Buildings Northwest Submarket Competitive Set Performance Micromarket Performance Competitive set Buildings by micromarket Southwest Submarket
42 43
Competitive Set Performance Micromarket Performance Competitive set Buildings by micromarket
53 54 56
44 45 46 47 50
23 2015 AQUILA Austin Market Report
41
LONG TERM PERFORMANCE OF SUBMARKETS Numbers based on CBRE statistics.
25%
8,000,000
20%
6,000,000
15%
4,000,000
10%
2,000,000
5%
0
0%
Citywide Direct Availability
Citywide Sublease Availability
2,500,000
30%
2,000,000
24%
1,500,000
18%
1,000,000
12%
500,000
6%
0
0%
Direct & Sublease Vacancy Rate
30%
10,000,000
Availability (SF)
12,000,000
CBD AVAILABLE SF VS. VACANCY RATE Direct & Sublease Vacancy Rate
Availability (SF)
CITYWIDE AVAILABLE SF VS. VACANCY RATE
Citywide Vacancy Rate CBD Direct Availability
CBD Sublease Availability
CBD Vacancy Rate
Citywide Vacancy Rate
NORTHWEST AVAILABLE SF VS. VACANCY RATE SOUTHWEST AVAILABLE SF VS. VACANCY RATE 36%
5,000,000
2,500,000
30%
2,000,000
24%
1,500,000
18%
1,000,000
12%
24%
3,000,000 18%
2,500,000 2,000,000
12%
1,500,000 1,000,000
Availability (SF)
Availability (SF)
3,500,000
Direct & Sublease Vacancy Rate
30%
4,000,000
6%
500,000
6%
0
0%
Direct & Sublease Vacancy Rate
4,500,000
500,000 0
0%
Northwest Direct Availability
Northwest Sublease Availability
Southwest Direct Availability
Southwest Sublease Availability
Northwest Vacancy Rate
Citywide Vacancy Rate
Southwest Vacancy Rate
Citywide Vacancy Rate
CITYWIDE AVERAGE CLASS A ASKING RATES
ABSORPTION & OCCUPANCY RATE Year Over Year Direct & Sublease Absorption (SF)
Full Service Rental Rate
$45.00 $40.00 $35.00 $30.00 $25.00 $20.00 $15.00
4,000,000
95%
3,000,000
90%
2,000,000
85%
1,000,000
80%
0
75%
-1,000,000
70%
65%
-2,000,000
CBD
42
Northwest
Southwest
Citywide
CBD
Northwest
Southwest
Citywide Occupancy Rate
Direct & Sublease Occupancy Rate
*Absorption includes sublease space. $50.00
LONG TERM PERFORMANCE CBD VS. SUBURBAN Numbers based on CBRE statistics.
AVERAGE CLASS A ASKING RATES
DIRECT & SUBLEASE VACANCY RATES
$50.00
30% 25%
$40.00 $35.00
20%
$30.00 Title
Full Service Rental Rate
$45.00
$25.00
10%
$15.00 $10.00
5%
$5.00 $0.00
0%
Suburban
Citywide
CBD Vacancy Rate
DIRECT & SUBLEASE AVAILABILITY
Suburban Vacancy Rate
Citywide Vacancy Rate
SF UNDER CONSTRUCTION 30%
10,000,000
25%
8,000,000
20%
6,000,000
15%
4,000,000
10%
2,000,000
5%
0
0%
3,500,000
Direct & Sublease Vacancy Rate
12,000,000
3,000,000
Area Under Construction (SF)
CBD
Direct & Sublease Availability (SF)
15%
$20.00
2,500,000 2,000,000 1,500,000 1,000,000 500,000
CBD
Suburban
Citywide Vacancy Rate
0
CBD
Northwest
Southwest
23 2015 AQUILA Austin Market Report
43
CENTRAL BUSINESS DISTRICT COMPETITIVE SET PERFORMANCE CBD COMPETITIVE SET Quarter
Net Rentable Area
Direct Available SF
Sublease Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Avg. Class A Full Service Rental Rate
2013 Q4
5,636,079
690,237
17,977
(2,302)
12.57%
$43.51
2014 Q1
5,637,136
618,961
4,210
86,100
11.05%
$44.03
2014 Q2
5,637,136
576,465
25,189
21,517
10.67%
$44.81
2014 Q3
5,827,916
483,868
81,356
227,210
9.70%
$45.13
2014 Q4
5,827,916
503,540
69,160
(7,476)
9.83%
$46.49
2015 Q1
6,344,401
421,858
55,200
612,127
7.52%
$47.28
2015 Q2
6,466,952
479,092
40,409
80,108
8.03%
$47.74
2015 Q3
6,466,952
370,193
38,822
110,486
6.32%
$48.70
700,000
94%
14%
600,000
93%
600,000
12%
500,000
92%
500,000
10%
400,000
91%
400,000
8%
300,000
90%
300,000
6%
200,000
89%
200,000
4%
100,000
2%
100,000
88%
0
0
0% 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3
Direct Available SF
Sublease Available SF
(100,000)
Direct & Sublease Vacancy Rate
15% 13%
$47.00
11%
$46.00 9%
$45.00
7%
$44.00 $43.00
5% 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 Average Class A Full Service Rental Rate
44
Direct & Sublease Vacancy Rate
Vacancy Rate
Rental Rate
$48.00
87% 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 Net Absorption*
VACANCY VS. RENTAL RATES $49.00
Absorption (SF)
16%
700,000
Vacancy Rate
Availability (SF)
800,000
Direct & Sublease Occupancy Rate
86%
Occupancy Rate
NET ABSORPTION
AVAILABLE SF VS. VACANCY RATE
CBD COMPETITIVE SET BUILDINGS Net Rentable Area
Direct Available SF
Sublease Available SF
Asking Rental Rate
Estimated OpEx
100 Congress
411,536
300 West 6th
454,225
28,001 ↑
0↓
$37.00 ↑
$18.65 ↑
1,421 ↓
7,081 ↑
$36.00 ↑
$18.42
301 Congress
418,338
400 West 15th
281,196
48,345 ↓
0
$33.50 ↑
$17.95
8,627 ↓
17,218
$24.50
$15.92 ↑
501 Congress
122,551
515 Congress
258,176
18,922 ↓
0
$32.00
$15.23
9,522 ↓
1,455 ↓
$32.00
600 Congress Ave.
$15.95
503,951
29,676 ↓
0
$33.00
$15.80
816 Congress
434,081
16,096 ↓
0
$29.00 ↑
$16.59
Austin Centre
326,335
17,794 ↑
6,576 ↑
$28.00 ↑
$15.88
Capitol Center
164,044
10,540 ↑
5,559
$28.00 ↑
$17.08
Capitol Tower
172,837
0
0
$29.00 ↑
$14.67
Chase Tower
389,503
16,711 ↑
0
$31.00
$17.90
Colorado Tower
373,334
0↓
0
$34.00
$14.49
Frost Bank Tower
535,078
8,881 ↓
0
$38.00 ↑
$19.25
IBC Bank Plaza
194,749
0↓
0
$30.00
$13.60
Building Name
Lavaca Plaza
118,635
0↓
0
$29.50
$17.54
Littlefield Building
109,779
30,424
933 ↓
$29.00
$14.32
One Congress Plaza
518,385
72,848
0↓
$30.00
$16.69
San Jacinto Center
406,279
40,207 ↓
0
$33.00 ↑
$17.15
Scarbrough Building
130,789
12,178 ↑
0↓
$31.00 ↑
$12.75
Seaholm
143,151
0
0
$28.00
$12.00
23 2015 AQUILA Austin Market Report
45
NORTHWEST SUBMARKET COMPETITIVE SET PERFORMANCE NORTHWEST COMPETITIVE SET Quarter
Net Rentable Area
Direct Available SF
Sublease Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Avg. Class A Full Service Rental Rate
2013 Q4
12,293,184
1,114,662
127,432
30,812
10.10%
$30.54
2014 Q1
12,293,184
1,050,027
135,810
56,257
9.65%
$31.21
2014 Q2
12,242,690
1,030,332
246,257
(141,246)
10.43%
$31.61
2014 Q3
12,389,252
911,833
321,739
189,579
9.96%
$32.12
2014 Q4
12,845,611
1,197,426
320,587
171,918
11.82%
$32.93
2015 Q1
12,931,909
992,203
292,334
319,774
9.93%
$33.39
2015 Q2
13,120,924
897,208
284,035
292,309
9.00%
$33.83
2015 Q3
13,310,232
1,129,335
287,248
(46,032)
10.64%
$33.55
*Absorption includes sublease space.
14%
1,200,000
12%
1,000,000
10%
800,000
8%
600,000
6%
400,000
4%
200,000
2%
0
0% Sublease Available SF
14%
$34.00
12%
$33.00
10%
$32.00
8%
$31.00
6%
$30.00
4%
$29.00
2% 0% 2014 Q2
2014 Q3
Average Class A Full Service Rental Rate
46
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Direct & Sublease Vacancy Rate
91%
100,000
90% 89%
0
88% 87% Net Absorption*
Vacancy Rate
Rental Rate
$35.00
2014 Q1
92%
200,000
(200,000)
VACANCY VS. RENTAL RATES
2013 Q4
300,000
(100,000)
Direct & Sublease Vacancy Rate
$28.00
93%
2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3
2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 Direct Available SF
400,000
Direct & Sublease Occupancy Rate
Occupancy Rate
16%
1,400,000
Vacancy Rate
Availability (SF)
1,600,000
Absorption (SF)
NET ABSORPTION
AVAILABLE SF VS. VACANCY RATE
ARBORETUM/DOMAIN MICROMARKET PERFORMANCE ARBORETUM/DOMAIN COMPETITIVE SET Quarter
Net Rentable Area
Direct Available SF
Sublease Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Avg. Class A Full Service Rental Rate
2013 Q4
6,106,452
433,941
35,988
166
7.70%
$32.00
2014 Q1
6,106,452
433,079
55,206
(18,356)
8.00%
$32.55
2014 Q2
6,106,452
476,360
109,332
(97,407)
9.59%
$33.04
2014 Q3
6,253,014
401,651
157,535
173,068
8.94%
$33.66
2014 Q4
6,474,987
445,544
121,157
214,458
8.75%
$34.38
2015 Q1
6,553,774
447,850
71,595
126,043
7.93%
$34.46
2015 Q2
6,742,789
389,248
63,891
255,321
6.72%
$34.77
2015 Q3
6,719,697
407,169
76,078
(53,200)
7.19%
$34.38
*Absorption includes sublease space.
700,000
14%
12%
600,000
12%
500,000
10%
500,000
10%
400,000
8%
400,000
8%
300,000
6%
300,000
6%
200,000
4%
200,000
4%
100,000
2%
100,000
2%
0%
0
0 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 Direct Available SF
Sublease Available SF
Availability (SF)
14%
600,000
Vacancy Rate
Availability (SF)
700,000
Vacancy Rate
NET ABSORPTION
AVAILABLE SF VS. VACANCY RATE
0% 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3
Direct & Sublease Vacancy Rate
Direct Available SF
Sublease Available SF
Direct & Sublease Vacancy Rate
$35.00
10.0%
$34.50
9.5%
$34.00
9.0%
$33.50
8.5%
$33.00
8.0%
$32.50
7.5%
$32.00
7.0%
$31.50
6.5%
$31.00
Vacancy Rate
Rental Rate
VACANCY VS. RENTAL RATES
6.0% 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 Average Class A Full Service Rental Rate
Direct & Sublease Vacancy Rate
23 2015 AQUILA Austin Market Report
47
SHEPHERD MOUNTAIN/2222 MICROMARKET PERFORMANCE SHEPHERD MOUNTAIN/2222 COMPETITIVE SET Quarter
Net Rentable Area
Direct Available SF
Sublease Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Avg. Class A Full Service Rental Rate
2013 Q4
2,453,857
274,295
40,399
(2,379)
12.82%
$30.16
2014 Q1
2,453,857
276,447
29,559
8,688
12.47%
$31.43
2014 Q2
2,453,857
241,923
46,956
17,127
11.77%
$31.95
2014 Q3
2,453,857
211,437
92,007
(14,565)
12.37%
$32.28
2014 Q4
2,688,442
389,788
127,233
21,008
19.23%
$33.10
2015 Q1
2,690,750
207,238
179,538
132,553
14.37%
$34.17
2015 Q2
2,690,750
181,807
152,245
52,724
12.41%
$34.45
2015 Q3
2,690,750
193,874
135,899
4,279
12.26%
$34.55
*Absorption includes sublease space.
20%
400,000
16%
300,000
12% 8%
200,000
140,000
93%
120,000
91%
100,000
89%
80,000
87%
60,000
85%
40,000
83%
20,000
81%
(20,000)
0%
0 Sublease Available SF
24%
$34.00
21%
$33.00
18%
$32.00
15%
$31.00
12%
$30.00
9%
$29.00
6%
$28.00
3%
$27.00
0% 2013 Q4
2014 Q1
2014 Q2
2014 Q3
Average Class A Full Service Rental Rate
48
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Direct & Sublease Vacancy Rate
Vacancy Rate
Rental Rate
VACANCY VS. RENTAL RATES
77% 75%
Net Absorption*
Direct & Sublease Vacancy Rate
$35.00
2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3
(40,000)
2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 Direct Available SF
79%
0
4%
100,000
Absorption (SF)
Availability (SF)
500,000
Vacancy Rate
24%
600,000
Direct & Sublease Occupancy Rate
Occupancy Rate
NET ABSORPTION
AVAILABLE SF VS. VACANCY RATE
FAR NORTHWEST MICROMARKET PERFORMANCE FAR NORTHWEST COMPETITIVE SET Quarter
Net Rentable Area
Direct Available SF
Sublease Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Avg. Class A Full Service Rental Rate
2013 Q4
3,732,875
406,426
51,045
33,025
12.26%
$28.41
2014 Q1
3,732,875
340,501
51,045
65,925
10.49%
$28.88
2014 Q2
3,682,381
312,049
89,969
(60,966)
10.92%
$29.02
2014 Q3
3,682,381
298,745
72,197
31,076
10.07%
$29.40
2014 Q4
3,682,182
362,094
72,197
(63,548)
11.79%
$30.26
2015 Q1
3,687,385
337,115
41,201
61,178
10.26%
$30.93
2015 Q2
3,687,385
326,153
67,899
(15,736)
10.69%
$31.66
2015 Q3
3,899,785
528,292
75,271
2,889
15.48%
$31.42
*Absorption includes sublease space.
NET ABSORPTION
AVAILABLE SF VS. VACANCY RATE 20%
700,000
18%
600,000
96%
60,000
94%
40,000
92%
20,000
90%
10% 300,000
8% 6%
200,000
4%
100,000
2% 0%
0 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 Direct Available SF
Sublease Available SF
Absorption (SF)
12%
400,000
Vacancy Rate
14%
88%
0 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 (20,000)
86%
(40,000)
84%
(60,000)
82% 80%
(80,000)
Direct & Sublease Vacancy Rate
Occupancy Rate
16%
500,000 Availability (SF)
80,000
Net Absorption*
Direct & Sublease Occupancy Rate
VACANCY VS. RENTAL RATES 18%
$32.00
16%
$31.00
12%
Rental Rate
10%
$29.00
8%
$28.00
6%
Vacancy Rate
14%
$30.00
4%
$27.00
2%
$26.00
0% 2013 Q4
2014 Q1
2014 Q2
2014 Q3
Average Class A Full Service Rental Rate
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Direct & Sublease Vacancy Rate
23 2015 AQUILA Austin Market Report
49
ARBORETUM/DOMAIN MICROMARKET COMPETITIVE SET BUILDINGS Net Rentable Area
Direct Available SF
Sublease Available SF
Asking Rental Rate
Estimated OpEx
3307 Northland
98,888
5,653 ↓
0
$16.50
$10.24
9500 Arboretum
182,331
0
18,319
$22.00
$13.00
Arboretum Atrium
90,280
2,515
0
$21.00
$14.27
Arboretum Plaza One
146,347
0
0
$27.00 ↑
$14.23
Arboretum Plaza Two
98,828
0
0
$27.00 ↑
$14.23
Arboretum Point
150,033
0
0
$23.00
$13.44
Atrium Office Centre
119,709
40,364 ↓
0
$17.50
$7.89 ↓
Austin Oaks
445,240
13,254 ↓
3,981 ↑
$18.00
$10.90
Balcones Centre
74,876
3,919
0
$24.00
$9.86
Braker Pointe I
77,454
15,370 ↓
0
$21.00
$13.16
Braker Pointe II
103,114
1,953 ↑
8,721 ↓
$21.00
$12.89
Braker Pointe III
195,230
0
0
$25.00 ↑
$12.84
The Campus at Arboretum 1
60,059
11,590
0
$22.00
$13.78
The Campus at Arboretum 2
33,135
5,891 ↑
0
$22.00
$13.85
The Campus at Arboretum 3
32,765
0
0
$22.00
$14.53
The Campus at Arboretum 4
85,916
6,447
0
$22.00
$14.17
The Campus at Arboretum 5
105,000
5,585
0
$22.00
$14.12
Colina West
69,299
0
0
$19.75
$10.71
Domain 2
143,331
0
0
$29.00 ↓
$11.00
Domain 3
179,006
0
20,816
$25.50
$10.34
Domain 4
152,012
0
0
$24.00
$11.16
Domain 7
221,973
31,000 ↓
0
$28.00 ↑
$11.33
Domain Gateway
173,962
0
0
$21.00
$14.95
Great Hills Corporate Center I
59,228
2,935 ↑
0
$17.50 ↓
$10.95
Great Hills Corporate Center II
60,429
0
0
$17.50 ↓
$10.95
Great Hills Corporate Center III
56,422
13,899 ↓
0
$17.50 ↓
$10.95
Great Hills Plaza
139,252
18,743 ↑
0
$20.00
$11.23
Greystone Plaza
78,248
8,427 ↓
0
$17.00 ↓
$12.63
Heritage Plaza
74,736
11,798 ↑
0
$28.00
$11.29
Kaleido I & II
73,149
8,680 ↑
0
$16.00 ↓
$10.20 ↑
Lakeview Plaza
120,956
6,266
0
$20.00
$10.73
Northpoint Centre I & II
151,126
13,890 ↑
0
$22.00
$11.22
Offices at the Domain Bldg 1
92,955
7,428 ↑
0
$26.50
$14.75
Offices at the Domain Bldg 2
75,509
0
0
$26.50
$13.59
One Far West Plaza
70,642
8,173 ↑
0
$17.00 ↓
$12.03 ↓
Park North I & II
133,568
4,924 ↓
0
$18.00
$11.83 ↑
Plaza 7000
155,076
24,405 ↑
0
$23.50
$12.92 ↑
Prominent Pointe I
150,376
24,342 ↓
0
$24.50
$13.65
Prominent Pointe II
102,567
0
13,112 ↑
$24.50
$14.70
Quarry Lake Business Center
117,512
5,048
0
$20.00
$11.08
Quarry Oaks I
165,435
7,155
0
$24.00
$11.82
Quarry Oaks II
126,000
0
0
$25.00
$11.48
Reunion Park
118,142
14,631
0
$19.50
$11.16
Stone Creek I
76,860
0
0
$22.00
$0.00
Stone Creek II
162,723
6,687
0
$22.00
$12.60
Building Name
50
Stone Creek Park
77,185
0
0
$20.00
$13.45
Stonebridge Plaza I
193,200
3,794 ↑
0
$26.00
$14.40
Net Rentable Area
Direct Available SF
Sublease Available SF
Asking Rental Rate
Estimated OpEx
Stonebridge Plaza II
192,864
0
0
$26.00
$13.98
Stratum Executive Center Bldg A
61,000
8,428 ↑
5,429
$20.00
$12.00
Stratum Executive Center Bldg B
61,000
0↓
5,700 ↑
$20.00
$12.00
Stratum Executive Center Bldg C
61,000
12,344
0
$20.00
$12.00
Stratum Executive Center Bldg D
61,000
0
0
$20.00
$12.00
The Park at 8300 N. MoPac
93,317
6,911
0
$23.00 ↑
$13.40
UFCU Plaza
246,869
25,161
0
$20.00
$12.15
Westech 360 Bldgs 1-4
175,529
15,709 ↓
0
$20.00
$11.93
Westpark Office 1-4
97,034
3,850 ↓
0
$28.50 ↑
$9.66
Building Name
SHEPHERD MOUNTAIN/2222 MICROMARKET COMPETITIVE SET BUILDINGS Building Name
Net Rentable Area
Direct Available SF
Sublease Available SF
Asking Rental Rate
Estimated OpEx
Bridgepoint Square 1
84,692
6,636 ↓
0
$23.00
$12.43
Bridgepoint Square 2
92,459
12,412 ↓
0
$23.00
$12.43
Bridgepoint Square 3
78,352
0
0
$23.00
$12.43
Bridgepoint Square 4
109,175
0
0
$23.00
$12.43
Bridgepoint Square 5
76,793
0↓
0
$23.00
$12.43
Bridgepointe Plaza I
105,333
0
0
$23.50 ↑
$12.81
Bridgepointe Plaza II
72,640
5,016 ↓
0
$23.50 ↑
$12.81
Champion Office Park I & II
230,000
0
0
$26.50
$11.00
Four Points Centre I & II
192,396
0
0
$23.50
$12.62
Ladera Bend 1
56,466
0
0
$21.50
$16.34
Ladera Bend 2
45,732
2,900
0
$21.50
$13.88
Ladera Bend 3
56,196
0
56,196
$21.50
$13.83
Lakewood Center I
47,389
0↓
45,020
$22.00 ↑
$13.20
Lakewood Center II
44,611
0
13,206
$22.00 ↑
$13.20
Lakewood in the Park B
102,086
11,998
0
$19.50
$9.60
Lakewood in the Park C
78,596
12,808 ↑
0
$19.50
$11.80
Millennium Building
125,612
0
0
$22.00
$11.94
Park Centre Bldg 1
89,822
10,079 ↓
0
$18.00
$11.75
Park Centre Bldg 2
35,095
18,730 ↑
0
$18.00
$11.75
Park Centre Bldg 3
78,270
57,562 ↑
0
$18.00
$11.75
Reserve at Bull Creek A
43,782
7,622
0
$18.00
$12.28
Reserve at Bull Creek B
43,713
0
0
$20.00
$10.86
Reserve at Bull Creek C
43,695
0
0
$20.00
$11.44
River Place Corporate Park I
76,529
0
0
$21.00
$12.79
River Place Corporate Park II
114,491
9,987
0
$21.00
$12.43
River Place Corporate Park III
113,465
4,339
0
$21.00
$12.50
River Place Corporate Park IV
87,639
8,601 ↑
0
$21.00
$13.53
River Place Corporate Park V
67,601
13,246 ↑
0
$21.00
$12.01
River Place Corporate Park VI
62,037
0
0
$21.00
$13.33
River Place Corporate Park VII
69,119
0
21,477 ↓
$21.00
$14.15
Shepherd Mountain Plaza
100,937
0
0↓
$33.00
$11.28
Stone Cliff
66,027
11,938 ↑
0
$18.00
$12.73
23 2015 AQUILA Austin Market Report
51
FAR NORTHWEST MICROMARKET COMPETITIVE SET BUILDINGS Net Rentable Area
Direct Available SF
Sublease Available SF
Asking Rental Rate
Estimated OpEx
Amber Oaks A
78,164
0
10,872 ↑
$19.00
$10.94
Amber Oaks B
44,184
0
0
$19.00
$8.30
Amber Oaks C
44,184
0
0
$19.00
$8.60
Amber Oaks D
28,733
0
0
$19.00
$10.45
Amber Oaks E
63,111
0
0
$19.00
$8.03
Amber Oaks F
78,034
78,034
0
$19.00
$10.09
Amber Oaks G
106,455
9,923
14,730
$19.00
$10.01
Amber Oaks H
101,045
0
0
$19.00
$10.93
Amber Oaks I
50,313
10,828
0
$19.00
$11.63
Building Name
50,111
6,245
33,147
$19.00
$10.90
Aspen Lake One
204,940
0
0
$18.50
$13.26
Crossings at Lakeline I
114,726
4,078
0
$21.50 ↑
$10.98
Amber Oaks J
52
Crossings at Lakeline II
117,548
6,879 ↓
0
$21.50 ↑
$11.10
Paloma Ridge A
106,200
106,200
0
$18.00
$9.50
Paloma Ridge B
106,200
106,200
0
$18.00
$9.50
Parmer Business Park A, B, C
123,731
0
0
$18.50
$5.60
Parmer Business Park D, E, F
107,283
0
0
$18.50
$5.60
Pecan Park I
136,444
0↓
0
$21.50
$10.72 ↑
Pecan Park II
136,245
0
0
$19.50
$9.45
Research Park Place 7
125,701
3,790
0↓
$22.00
$11.55
Research Park Place 8
125,700
33,518
0
$22.00
$11.55
Research Park Plaza I
136,068
11,747 ↓
0
$21.50 ↓
$13.96
Research Park Plaza II
135,813
0
0
$21.50 ↓
$13.96
Research Park Plaza III
173,530
0
0
$23.00
$13.08
Research Park Plaza IV
184,114
11,342 ↑
0
$23.00
$13.08
Riata Corporate Park Bldg 2
63,372
16,821
0
$22.00
$12.33
Riata Corporate Park Bldg 3
63,849
0↓
0
$22.00
$12.33
Riata Corporate Park Bldg 4
93,737
93,737
0
$22.00
$12.33
Riata Corporate Park Bldg 5
93,828
23,783 ↑
0
$22.00
$12.33
Riata Corporate Park Bldg 6
93,835
0
0
$22.00
$12.33
Riata Corporate Park Bldg 7
92,719
0
0
$22.00
$12.33
Riata Corporate Park Bldg 8
93,718
0
16,522
$22.00
$12.33
Riata Corporate Park Bldg 9
92,973
0
0
$22.00
$12.33
Riata Crossing Bldg 1
81,775
0
0
$19.00
$8.00
Riata Crossing Bldg 2
114,906
0
0
$19.00
$8.00
Riata Crossing Bldg 3
81,229
0
0
$19.00
$8.00
Riata Crossing Bldg 4
79,465
0
0
$19.00
$8.00
Tower of the Hills/Tower Point
175,802
5,167 ↓
0
$20.00 ↑
$12.60
SOUTHWEST COMPETITIVE SET PERFORMANCE SOUTHWEST COMPETITIVE SET Quarter
Net Rentable Area
Direct Available SF
Sublease Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Avg. Class A Full Service Rental Rate
2013 Q4
7,108,930
552,899
97,634
51,204
9.15%
$33.82
2014 Q1
7,102,874
480,177
202,095
(37,795)
9.61%
$34.71
2014 Q2
7,102,874
387,913
208,978
85,381
8.40%
$35.06
2014 Q3
7,102,874
294,587
169,604
132,700
6.54%
$35.47
2014 Q4
7,102,547
386,333
182,477
(104,946)
8.01%
$36.07
2015 Q1
7,100,750
399,919
188,613
(21,519)
8.29%
$36.98
2015 Q2
7,782,464
428,605
213,812
627,829
8.25%
$37.55
2015 Q3
7,949,325
353,625
264,345
191,308
7.77%
$37.61
*Absorption includes sublease space.
700,000
96%
14%
600,000
95%
600,000
12%
500,000
94%
500,000
10%
400,000
93%
300,000
92%
200,000
91%
100,000
90%
400,000
8%
300,000
6%
200,000
4%
100,000
2%
0
0%
0 (100,000)
2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 Direct Available SF
Sublease Available SF
Absorption (SF)
16%
700,000
Vacancy Rate
Availability (SF)
800,000
89% 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3
(200,000)
88% 87%
Net Absorption*
Direct & Sublease Vacancy Rate
Occupancy Rate
NET ABSORPTION
AVAILABLE SF VS. VACANCY RATE
Direct & Sublease Occupancy Rate
$38.00
10%
$37.00
9%
$36.00
8%
$35.00
7%
$34.00
6%
Vacancy Rate
Rental Rate
VACANCY VS. RENTAL RATES
5%
$33.00 2013 Q4
2014 Q1
2014 Q2
2014 Q3
Average Class A Full Service Rental Rate
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Direct & Sublease Vacancy Rate
23 2015 AQUILA Austin Market Report
53
NEAR SOUTHWEST MICROMARKET PERFORMANCE NEAR SOUTHWEST COMPETITIVE SET Quarter
Net Rentable Area
Direct Available SF
Sublease Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Avg. Class A Full Service Rental Rate
2013 Q4
2,718,656
228,673
41,301
13,994
9.93%
$35.99
2014 Q1
2,712,851
209,356
143,888
(89,075)
13.02%
$37.18
2014 Q2
2,712,851
191,624
165,931
(4,311)
13.18%
$37.40
2014 Q3
2,712,851
174,207
126,557
56,791
11.09%
$37.59
2014 Q4
2,713,137
158,703
124,248
18,099
10.43%
$38.03
2015 Q1
2,711,340
143,863
125,110
12,181
9.92%
$39.26
2015 Q2
2,925,937
110,815
101,710
271,045
7.26%
$39.49
2015 Q3
2,925,937
105,532
175,528
(68,535)
9.61%
$39.84
*Absorption includes sublease space.
300,000
94%
14%
250,000
93%
300,000
12%
200,000
92%
250,000
10%
150,000
91%
200,000
8%
100,000
90%
50,000
89%
150,000
6%
100,000
4%
50,000
2%
0
17%
$40.00
Rental Rate
13%
$38.00 11% $37.00 9%
$36.00
7%
$35.00
5%
$34.00 2013 Q4
2014 Q1
2014 Q2
2014 Q3
Average Class A Full Service Rental Rate
54
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Direct & Sublease Vacancy Rate
Vacancy Rate
15%
$39.00
85% Net Absorption*
VACANCY VS. RENTAL RATES
87% 86%
(150,000)
Direct & Sublease Vacancy Rate
$41.00
2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3
(100,000)
0% Sublease Available SF
88%
0 (50,000)
2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 Direct Available SF
Absorption (SF)
16%
350,000
Vacancy Rate
Availability (SF)
400,000
Direct & Sublease Occupancy Rate
Occupancy Rate
NET ABSORPTION
AVAILABLE SF VS. VACANCY RATE
FAR SOUTHWEST MICROMARKET PERFORMANCE FAR SOUTHWEST COMPETITIVE SET Quarter
Net Rentable Area
Direct Available SF
Sublease Available SF
Net Absorption*
Direct & Sublease Vacancy Rate
Avg. Class A Full Service Rental Rate
2013 Q4
4,390,274
324,226
56,333
37,210
8.67%
$32.48
2014 Q1
4,390,023
270,821
58,207
51,280
7.49%
$33.19
2014 Q2
4,390,023
196,289
43,047
89,692
5.45%
$33.62
2014 Q3
4,390,023
120,380
43,047
75,909
3.72%
$34.16
2014 Q4
4,389,410
227,630
58,229
(123,045)
6.51%
$34.86
2015 Q1
4,389,410
256,056
63,503
(33,700)
7.28%
$35.57
2015 Q2
4,856,527
317,790
112,102
356,784
8.85%
$36.39
2015 Q3
5,023,388
248,093
88,817
259,843
6.71%
$36.31
*Absorption includes sublease space.
9%
400,000
8%
350,000
7%
300,000
6%
250,000
5%
200,000
4%
150,000
3%
100,000
2%
50,000
1%
0
0% Sublease Available SF
100%
300,000
98%
200,000
96%
100,000
94% 92%
0 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3
90%
(100,000)
2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 Direct Available SF
400,000
Occupancy Rate
10%
450,000
Vacancy Rate
Availability (SF)
500,000
Absorption (SF)
NET ABSORPTION
AVAILABLE SF VS. VACANCY RATE
88%
(200,000)
Direct & Sublease Vacancy Rate
Net Absorption*
Direct & Sublease Occupancy Rate
$37.00
15%
$36.00
12%
$35.00
9%
$34.00
6%
$33.00
3%
$32.00
Vacancy Rate
Rental Rate
VACANCY VS. RENTAL RATES
0% 2013 Q4
2014 Q1
2014 Q2
2014 Q3
Average Class A Full Service Rental Rate
2014 Q4
2015 Q1
2015 Q2
2015 Q3
Direct & Sublease Vacancy Rate
23 2015 AQUILA Austin Market Report
55
NEAR SOUTHWEST MICROMARKET COMPETITIVE SET BUILDINGS Net Rentable Area
Direct Available SF
Sublease Available SF
Asking Rental Rate
Estimated OpEx
Barton Creek Plaza I
72,974
17,132 ↓
0
$22.00
$12.53
Barton Creek Plaza II
64,718
8,466 ↑
0
$23.00 ↑
$11.69
Barton Creek Plaza III
64,842
6,413
0
$23.00 ↑
$11.83
Barton Oaks Plaza I
99,404
7,741 ↑
0
$27.00 ↑
$14.68
Building Name
56
Barton Oaks Plaza II
116,368
11,073
0
$26.25 ↑
$14.37
Barton Oaks Plaza III
121,467
7,237 ↑
0↓
$26.25 ↑
$13.41
Barton Oaks Plaza IV
112,000
0
0
$40.00
$13.86
Barton Oaks Plaza V
119,549
5,988 ↑
4,189
$26.00
$13.80
Barton Skyway I
195,324
3,240 ↓
0↓
$25.50
$13.40
Barton Skyway II
195,639
0↓
0
$25.50
$13.79
Barton Skyway III
173,302
0↓
0
$25.50
$13.70
Barton Skyway IV
222,580
0
0
$25.50
$12.86
Centre I
39,903
0↓
0
$21.00 ↑
$12.50 ↑
Centre II
54,610
0↓
0
$19.50
$11.82
Mira Vista
121,147
0
0
$27.00
$14.09
Overlook at Gaines Ranch
50,725
0
0
$26.50
$14.17
Rollingwood Center I & II
214,587
7,878
109,812 ↑
$29.00 ↑
$12.00
Spyglass Point
58,576
0
0
$21.00
$13.45
The Park on Barton Creek 1
102,608
0
42,527 ↓
$24.50
$13.33
The Park on Barton Creek 2
102,587
0
0
$24.50
$13.33
The Terrace 1
115,460
6,354
0
$23.50
$14.90
The Terrace 2
114,635
0↓
0
$23.50
$15.03
The Terrace 6
196,717
22,771 ↑
0
$27.50 ↑
$15.62
The Terrace 7
196,215
1,239 ↑
19,000
$27.50 ↑
$15.59
FAR SOUTHWEST MICROMARKET COMPETITIVE SET BUILDINGS Net Rentable Area
Direct Available SF
Sublease Available SF
Asking Rental Rate
Estimated OpEx
3700 San Clemente
249,870
51,934 ↓
0
$29.50 ↑
$11.50
3900 San Clemente
251,146
0
0
$25.00
$13.93
5000 Plaza on the Lake
118,063
6,162 ↑
9,980
$26.50 ↑
$14.57
7000 West at Lantana 1 & 2
136,075
0
0
$24.50
$12.13
Canyon at Wild Basin
74,580
12,579 ↑
1,283
$24.00 ↑
$11.60
Capital Ridge
216,511
0
0
$30.00
$10.56
Cielo Center
270,711
16,483 ↑
3,371
$19.50
$12.55
CityView 1
46,702
0↓
0
$20.50
$10.55
CityView 2
47,809
0
0
$20.50
$10.55
CityView 3
48,044
6,794 ↑
0
$20.50
$10.55
CityView Center
137,763
0
24,478 ↓
$25.00 ↑
$11.79
Crystal Mountain 1, 2 & 3
61,762
7,920 ↓
1,590
$25.00 ↓
$9.41
Dimensional Place I
220,000
0
0
$24.00
$12.42
Dimensional Place II
156,000
0
0
$24.00
$12.42
Encino Trace I
161,606
0
0
$23.50
$11.00
Escalade Bldg A
56,701
9,440
0
$19.50 ↑
$11.92
Escalade Bldg B
56,701
2,083 ↓
0
$19.50 ↑
$11.92
Lake Pointe II
42,933
0↓
0
$24.00 ↓
$8.42 ↑
Las Cimas I
85,000
3,700
0
$24.50
$14.18
Las Cimas II
156,069
19,402 ↑
0↓
$26.00
$13.83
Las Cimas III
157,418
1,135 ↑
3,718
$26.00
$13.93
Las Cimas IV
138,008
2,587 ↑
1,590 ↓
$26.50
$14.47
Lost Creek Point
73,026
5,308
0
$18.00 ↓
$12.35 ↓
Parkway at Oak Hill I & II
145,475
1,779
0
$23.50
$13.07
Plaza 290
63,163
3,825 ↑
4,002
$18.00 ↑
$11.37 ↑
Plaza on the Lake I
122,530
8,936
0
$26.50 ↑
$13.84
Plaza on the Lake II
111,166
0
0
$26.50 ↑
$14.96
Rialto I
77,872
7,302 ↑
0
$23.00 ↑
$11.63
Rialto II
77,508
1,588 ↓
36,421
$23.00 ↑
$11.63
San Clemente Bldg B
90,267
0
0
$26.50
$14.05
Building Name
The Enclave
44,704
0
0
$17.00
$8.37
The Summit 1-5
865,832
52,939
0
$25.00
$11.84
Travis Oaks
123,434
7,128 ↑
2,384
$22.50
$12.09
Vista Ridge I
75,131
10,233 ↓
0
$17.50
$11.33
Westlake Place
61,184
8,836 ↑
0
$19.50 ↓
$10.50
Wild Basin Atrium Bldg A
67,500
0
0
$16.50
$9.31
Wild Basin I
60,498
0
0
$19.00
$11.40
Wild Basin II
74,626
0
0
$19.00
$11.37
23 2015 AQUILA Austin Market Report
57
YOUR NOTES:
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23 2015 AQUILA Austin Market Report
59
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