SPRING COOL IN AUSTIN’S OFFICE MARKET
By Michael Kennedy, President,
Commercial Texas

Is it April already? Is it a cool spring? Is there a slight chill in the hot Austin office market? CoStar says absorption was only 88,631 SF. Capitol Market Research is not expecting more, and other sources are saying even less. Yet, asking rents are still climbing!

Our bet is it's just a lull that may last through the third quarter. Austin is still growing and prospering, adding more jobs and roads, which will continue for awhile.

  It's still a market. Best guidance is to make a deal when you can whether you're the landlord or tenant. No one really can predict the timing of the market. Nevertheless, we're confident of a bright future for the Austin office market even with this little chill.

So, chill out. Remain optimistic. After all, it is Austin, Texas. And it’s always great here!


THE "THREE DEATHS" OF A REAL ESTATE DEAL

By Lee Ellison, Associate Vice President

 Every sales transaction, land or improvements, suffers "three deaths" before finally closing.

The first death can happen as the buyer is about to put the property under contract and begins having buyer’s remorse. This is a typical emotional condition that happens to customers when buying high-value items, such as homes or land. However, if the listing broker has qualified the buyer, this death doesn’t happen too often.

 B the feasibility (inspection) period ends, the second death occurs. The buyer now has to deposit the earnest money. At this point, sometimes anxiety becomes a factor. This could lead the buyer to reconsider and back out of the transaction. Possibly citing the lack of due diligence material, the buyer may request more time to compile and review it.

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RENTAL RATES ARE SOARING IN AUSTIN

By Eugene Gillgan
Republished from CPN

THOMAS PROPERTIES BUYS $1.2B IN EOP PROPERTIES

Thomas Properties Group Inc. has bought 10 Class A office properties for $1.15 billion from affiliates of Blackstone Real Estate Advisers, who sold the assets from a recent Equity Office Properties purchase.

"Our eyes have been on Austin and we've wanted this portfolio for years," said John Sischo, the executive vice president of Thomas Properties.

The properties in the portfolio include: Frost Bank Tower, West 6th St. buildings, Downtown's San Jacinto Center, One Congress Plaza and One American Center; and Northwest Austin's Stonebridge Plaza II, Park 22, Research Park Plaza I & II, Westech 360 and Great Hills Plaza.

Making the portfolio more attractive, the EOP properties had an 82 percent occupancy rate, with expectations for a higher climb. Austin’s population, employment, and economic growth forecasts were also big factors in the decision.

The deal is the largest in Texas and makes Thomas Austin's largest Class A landlord.

RUSSELL YOUNG EARNS PRESTIGIOUS SIOR DESIGNATION

Russell Young, SIOR, Vice President of Commercial Texas’ Tenant Representation Group, has achieved the SIOR designation awarded by the Society of Industrial and Office REALTORS®, an international association of professional commercial real estate brokers.

Young, with Commercial Texas for eight years, has conducted over 200 transactions and been involved in the lease or sale of over 2.6 million square feet of commercial real estate. He has been ranked as a CoStar Power Broker for four years and named as one of Austin Business Journal’s Heavy Hitters in tenant representation for three years.

  

To achieve the SIOR designation, Young has completed more than the required five years of creditable experience in the specialized field of office real estate; and demonstrated to the Society professional ability, competency, ethical conduct and personal integrity. To learn more about the Society, go to www.SIOR.com.

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HOLTZMAN, MOELLENBERG, PANOZZO AND PERKINS LLP PURCHASE SIXTH STREET BUILDING

 Commercial Texas represented Holtzman Moellenberg Panozzo & Perkins, LLP in their purchase of 1701 West Sixth Street in downtown Austin, Texas.

  The Austin-based audit and advisory services firm is moving to the 2,600-square-foot office space from their present location at 1410 West Sixth Street due to rapid growth over the past year.  Holtzman Moellenberg Panozzo & Perkins doubled in 2006 to 22 employees.

   "We’ve grown quickly since our founding in 2004 and required more space to accommodate new staff and team members," said Chris Perkins, Holtzman, Moellenberg, Panozzo and Perkins. "Commercial Texas worked with us to find a new space that fit our commitment to the Austin market and our increased space requirements."

   Holtzman Moellenberg Panozzo & Perkins provides audit services to private companies and advisory services to the public sector. Prior to inception, the firm’s partners had a combined 72 years of accounting experience at leading "Big Four" firms.

   Russell Young and Carl Condon of Commercial Texas represented Holtzman Moellenberg Panozzo & Perkins. Joe Willie and Stan McAllister represented the seller.

WESTLAKE SECURITIES EXPANDS TO NEW HEADQUARTERS

Commercial Texas represented Westlake Securities in their lease of 4,300-square-feet of office space at 2600 Via Fortuna in Austin, Texas.

   Westlake Securities, an independent investment bank which provides merger/acquisition, capital raising and valuation services to emerging growth and middle market companies, has expanded its team and capabilities. Recent additions include several senior investment bankers.

  "We're focused on providing our clients with the sort of high-touch service with senior level bankers that rarely occurs at larger investment banks," said Michael McAllister, Managing Director of Westlake Securities. "As a result we're expanding. Commercial Texas helped us create a workspace solution that addresses both our long and short-term objectives."

  Russell Young and Carl Condon with Commercial Texas represented Westlake Securities. Mark Griener with Oxford Commercial represented the landlord.