CAPTEX COMMERCIAL PROPERTIES

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Welcome to Captex Commercial Properties

We have been actively serving the Central Texas real estate community, under one name or another, for over 30 years through good times and bad. We specialize in the leasing, brokerage and management of commercial and investment properties. Our clients are assured of the highest levels of customer service and integrity. Fro more about us, please check out our about page.

Regardless of your requirements we are prepared to help provide the solutions that meet your needs. Please let us know how we may be of service to you. For our current listings, please see our FOR SALE PAGE, our FOR LEASE PAGE, and our NEEDS PAGE. However, please do call, because we may have some items not listed. 512.527.9600

Thanks for your interest in Captex Commercial Properties, we look forward to hearing from you soon.
>> Bill Oates, CCIM

Scoop on Large Office Building Valuation

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.

Outlook for Industrial Space

While the debate on the prognosis of office space continued, the race to get industrial space, especially in Austin, expands to frantic pace. As there is a shift in sourcing, every stage of the supply chain seeks space. This is magnified, of course where large factories are moving in.

Marcus and Millichap opines that the upward growth trajectory signals a long-term confidence. Only should a factory that has a an out-sized presence in a town pull out, will there be an over-supply. Diversification, innovation, and sheer size will militate against that negative outcome. JLL also suggests industrial has an auspicious future.

Overall, Austin’s outlook looks sunny.

Office Space in Demand in Austin. TX

After much debate about the future of office space post covid, including some doom saying about the trend or work from home, office space is in high demand in downtown Austin.

Of course, the trend toward remote working was accelerated by the shutdown. Of course, the shutdown exacerbated the poor economy in some places. The same phenomenon, however, accelerated the trends of tech growth and migration to Texas.

The silicon hills continued construction and high tech startups and behemoths alike continued making plans to move in. Elon Musk, fed up with California’s strictures, purchased a large chunk of land in East Austin. Rumor has it that not one but two companies of his will be relocating here.

While it might be a short while until the contraction from wfm is balanced by economic growth in other markets, in Austin all trends are upward. Downtown Austin continues to see mixed use towers built with dizzying magnitude. Valuations are skyrocketing around the metro area. Most rich ,however, is that now some downtown office rents top those of Manhattan.

Colliers reported during the end of 2020 on Austin office space. Read it here.

The Austin American Statesman addressed this issue just a few days ago. Read it here.

CBRE gives a more numerical report. Demand is on the upswing, but there is still availability. Read it here.