Throughout Texas, office investment sales dropped 63 percent from the first quarter of 2018, compared to the same time in 2017. The 5.6 million square feet of inventory that traded in Texas last quarter is the lowest volume in five years.
Of the 22 office sales recorded in Q1 in Texas, only 10 disclosed a price, according to new data from real estate analytics company Commercial Café. Of the known sale prices, the average price per square foot of $199 stands higher than the previous quarter. Houston prices average higher than Dallas, though these two markets are the highest in the state.
In terms of activity, DFW was the most active market with 11 office trades, including Libitzky Property Cos. and Sunwest Real Estate Group’s purchase of 1925 W. John Carpenter Fwy. in Irving. Houston had eight major trades, including Marathon Oil Tower. Austin had three. (The data looked at assets larger than 50,000 square feet.)
As for development, Dallas also come ahead of the rest of the state with all of the largest Q1 office completions, except for Austin’s Oracle campus. So far in 2018, JPMorgan’s Legacy West campus, TD Ameritrade’s Southlake office, HALL Park’s 17th building and Fort Worth’s newest skyscraper Frost Tower have been completed.
