CRE professionals have been discussing office building trends, trying to predict the future. We now have a read on the local situation.
Travis county records indicate that Apple, still HQed in California, just purchased the Austin building that they have occupied for some time at 320 S. Capital of Texas. The 217,00 sq foot office building was owned by GLL Realty, from Munich who purchased it 2017 for $96 million, or $443 per square foot. Sources say that Apple purchased the building this month for $146 million or $647 sq foot.
For comparison, Kilroy Group from LA paid $800 sq ft for the Indeed Tower downtown in June. The average sale price for far this year in Austin for office buildings is $281 sq ft , likely hampered by the pandemic. In 2019, the average was $464.
While Apple is not commenting, the purchase does seem to indicate that Apple continues to be confident in Austin’s land appreciation. Apple has about 7,000 people already working in the Austin area and expects to have 5,000 more when it opens its next campus here, to be located just north of it’s existing Parmer location.