Austin Office Sales Lag in First Months of 2022

Year-to-date through February, office deals in Austin amounted to an estimated $47 million, the Texas capital holding one of the lowest figures across U.S. markets, according to CommercialEdge data.

Since the start of the year, nine major office properties traded totaling more than 692,000 square feet in Austin, at an average price of $253 per square foot. Other similar-growth Sun Belt cities, such as Charlotte ($605), Atlanta ($423) and Nashville ($310) had higher prices, while Phoenix ($228), Houston ($175) and Dallas ($137) registered lower average prices per square foot in the first two months of 2022. By comparison, in the first two months of 2021 ten properties totaling 171,800 square feet changed hands within the Austin metro.

In February, CommercialEdge recorded three significant transactions in the Texas capital. The largest deal of the month was The RMR Group’s sale of Reserve at Bull Creek, a 131,275-square-foot property in Austin North. Urbana Partners purchased the asset with a $24 million loan provided by Thorofare Capital Inc., an affiliate of Callodine Group, and has plans the reposition the asset. The two-building office complex dates back to 2000.

The second largest sale was the trade of 4700 Mueller Blvd., a 52,000-square-foot property in East Austin. Riverside Resources purchased the three-story building from American Institutes for Research with a $11.4 million loan by Frost Bank.

CommercialEdge covers 8M+ property records in the United States. View the latest CommercialEdge national monthly office report here.