Austin Real Estate Gold Rush

Posted by David Kanne on Friday, October 11th, 2013 at 6:27pm.

Austin Gold Rush

The real-estate market in Austin, Texas, has been on a roll. Apple Inc. announced in 2012 that it was planning a $304 million campus in the city, doubling its presence.

Now, a Cushman & Wakefield report said that in the past year Austin has seen office-building investment volume increase in percentage terms more than in any other U.S. city. The total value of the properties sold in the 12 months ended June 30 was $2.1 billion, a 304% increase over the previous year.

The largest single purchase during the 12-month period was by Cousins Properties Inc., CUZ +0.75%which bought a 434,000-square-foot building at 816 Congress Ave. for $105 million.

Demand for Austin office buildings is being fueled by the city's technology sector. The overall vacancy rate in the city fell in the second quarter to 11.6% from 15% a year before, according to Cushman & Wakefield. Rents rose to $27.60 a square foot on average, up 6.4% in the same span.

 

The Cushman report said New York was the leading city in office-building sales in terms of total volume, with $49.2 billion, up 39% for the 12-month period.

 

—Melvin Backman

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