CTX Represents Surgient
Surgient, Inc., the leading software provider of Virtual Lab Management Applications, training and evaluation, has renewed the lease of its 26,500-square-foot headquarters at 8303 Mopac Expressway.
Russell Young and Carl Condon of Commercial Texas represented Surgient in the transaction. Lucian Morehead of Aspen Properties represented the landlord.
CTX Represents demandFitness
demandFitness has leased 1,114 square feet of office space in the Bridgeport Building at 3701 Executive Center Drive.
Burke Kennedy and Russell Young of Commercial Texas represented demandFitness. Lani Abbott of Aspen Growth Properties represented the landlord.
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 The Nervous Market
By Michael Kennedy, SIOR, President, Commercial Texas
The New Year is upon us.
2007 was a transition year in many respects for Austin. Overall, there was less leasing activity and lower than expected office absorption, though still positive.
The city witnessed rising rental rates with higher vacancy and is poised to see more than 2.5 million square feet of office product get delivered in 2008.
As we look forward, Austin is a nervous market. The region is nervous about the national economy and nervous about the inconsistency in demand with job growth slowing. Austin is also nervous about whether it should be nervous or not, given its more positive position relative to the national landscape and other regional markets.
The bright spot in 2007, and perhaps for 2008, is the approximately 290,000 square feet of absorption in the Central Business District-- the highest of any sub-market in Austin, per Capitol Market Research.
With the CBD demand, the rumored possible new CBD office building(s) may be becoming a real possibility!
The best news is that Austin will have more than its share of good news throughout 2008. That is certain!
 Rents rising, more space available than ever, so what gives?
Austin Business Journal - by Russell Young Contributing writer
Business owners are wondering if and when to pull-the-trigger on expansion.
Central Texas remains one of the strongest regions in the country bucking job and economic growth numbers. Despite this, there's a tangible uneasiness about the local versus national economic picture.
In the span of two short years, slightly more than three million square feet of office real estate will pour into Austin. Recent reports show that substantially less office space was absorbed in the last quarter of 2007, raising questions about the consequences of even more space on the market, and what the implications of that may mean.
In 2003, when market rates were 35 to 100 percent lower, many businesses signed up for five year leases. Now, those businesses are facing a harsh new reality. The cost of new construction and investors' drive for returns on their purchases has made rents go way up on a percentage basis. This rise in cost may seem counterintuitive because absorption has stagnated in 2007. In the last quarter of 2007, some researchers show only 65,950 square feet was absorbed across town, down nearly 75 percent from last year.
Read full article
 Myth #3: We find your office space for free
In late 2007, Commercial Texas revealed and discounted the five myths of commercial real estate. Below is a sample of Myth #3:
No, commercial real estate brokers do not find space for free. Clearly that would defy all logic. Like all services, there is a cost. Thus, tenants need to make sure that the representative they are paying through the lease term is generating the kind of value that justifies thousands of dollars.
The commercial real estate industry has not been clear about its commission structure. It’s important to ask the question. A straight answer from a broker illustrates his or her approach to business.
The structure is not complicated. While all real estate commissions are negotiable, landlords typically pay a percentage of the total lease value: a higher percentage is typically paid to tenant brokers and a lower percentage paid to landlord representatives. If a company leases space without a tenant representative, the landlord representative is typically paid the higher percentage commission, and the landlord keeps the remaining amount. The “extra” percentage that a landlord pays when a tenant is represented by a commercial real estate broker is embedded in the price of the lease-- whether a tenant pays $1 or $100 per square foot leased. Ultimately, the commission is paid by the tenant over the term of the lease.
If a company is looking for the best deal, should they forgo a broker to capture a commission savings? The answer is no. In fact, a company is likely to pay the higher percent to the landlord agent and miss-out on numerous options and concessions, all of which will have economic consequences over the tenant’s lease term.
To download the full white paper of the third myth of commercial real estate, visit the Commercial Texas Web page at www.commercialtexas.com/fivemyths/
Need a job? Austin's got plenty, report says
Republished from Austin Business Journal
 There's good news for those looking for work in Austin in 2008.
The Austin area ranked as one of the top metro areas in the nation when it came to online job advertisements in December, according to a report by The Conference Board.
Austin had 5.07 advertised vacancies per 100 people in the local labor force, just below Milwaukee, with 5.31 vacancies per 100 locals, and San Jose, with 5.30 online job ads per 100 people, according to the report.
Nationally, there were 2.3 advertised vacancies online for every 100 people in the work force in December, according to The Conference Board, a nonprofit research organization based in New York that tracks the postings on 1,200 Internet job boards.
Austin also had the highest number of advertised vacancies in relation to the number of unemployed of any metro area in the nation.
A total of 43,200 jobs were advertised on the Internet in December 2007, up 19.7 percent from 36,100 in December 2006. The national growth rate of online job postings was slower -- 6 percent -- during the same year-to-year period.
In Austin, the number of new ads was up 17.6 percent from 25,600 in December 2006. The Conference Board generates a monthly report of help-wanted advertising in the nation's newspapers.
Austin: The Media Star
 Austin continued to grace headlines and win top rankings for its vibrancy and business environment in 2007 –
National Geographic Adventure names Austin as Texas' #1 Adventure Town in their list of "50 Best Places to Live & Play." (September 2007)
Moody's Economy.com rates Austin as the best place for business in the U.S. (August 2007)
Newsweek lauds the University of Texas as "Hottest for Saving America's Schools," for excellence in education reform, in the 2007 "Top 25 Universities" poll. (August 2007)
Austin is one of the top four cities to watch as a retirement-friendly community, according to AARP The Magazine. (July 2007)
Fast Company magazine lists Austin as a "Startup Hub" with a creative, young population and a high number of wi-fi internet spots per capita. (July 2007)
MSN.com gives Austin top billing among America's Greenest Cities, citing the city's green energy program and climate protection plan. (June 2007)
Sherman's Travel lists Austin at #5 among its Top Ten Easy Spring Getaways (May 2007)
Conde Nast Traveler includes the Hyatt Lost Pines Resort & Spa on the 2007 Hot List celebrating the best and most promising new hotels in the world. (May 2007)
Kiplinger's Personal Finance rates Austin among the top five cities in the country for young singles, as part of their "Best Cities for Every Stage of Your Life." (June 2007)
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