Booming Austin, TX economy fuels sale of Congress Commons

 

Erin Lazarus

DALLAS,TX – JLL Capital Markets has closed the sale of Congress Commons, a fully leased, 50,244-square-foot mixed-use creative office and retail property in the heart of downtown Austin, Texas.

Patrick McCord

 JLL marketed the property on behalf of the seller, Asana Partners. Clarion Partners purchased the asset on behalf of Clarion Partners Real Estate Income Fund (CPREIF).

The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Senior Managing Directors Ryan Shore and Chris Gerard, Managing Director Kelsey Shebay, Senior Associate Patrick McCord and Analyst Erin Lazarus.

 Originally built in the late 1800’s and early 1900’s, Congress Commons brings together three historic Austin properties – the McKean-Eilers, Day and Swift buildings – that were once home to some of the most successful businesses of the day, including the Swift Meat Packing Co. and Davis Hardware.

Repositioned in 2013 into a mixed-use creative office property, Congress Commons is fully leased to Accenture, One Medical, Sushi Junai, Swift’s Attic and the Elephant Room.

Kelsey Shebay

 The property is positioned along one of Austin’s most heavily trafficked streets – Congress Ave., between 3^rd and 4^th Streets.

 This location is in the heart of downtown Austin offering walkability to a world-class amenity base comprising more than 190 dining, 140 entertainment and 135 retail options.

Chris Gerard

The property also has direct access to Austin’s best outdoor amenities, including Lady Bird Lake and the 10-mile hike and bike trail.

 In addition, Congress Commons is accessible from nearly all of Austin’s trendiest spots, including the Capitol Complex, UT Health District, Innovation District, Market District and Rainey Street District.

 Austin has witnessed tremendous demand throughout the last decade with more than a 75% growth in population. The tech surge is predicted to continue to boost the Austin economy with a more than 20% population growth predicted through 2025.

 

Ryan Shore

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. 

The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. 

The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

 For more news, videos and research resources on JLL, please visit our newsroom

Contact: 

 Kristen Murphy

JLL Senior Manager

 Public Relations

Phone: +1 617 848 1572

Email:  Kristen.Murphy@am.jll.com

 asanapartners.com.

www.jll.com.

 clarionpartners.com.

Tenant Shuffling Reflects Improving – but Still Vulnerable – Phoenix Office Market

Curtis Hornaday

 

PHOENIX, AZ – The Phoenix office market posted more than 604,000 square feet of positive office space absorption during Q3 2021, according to the new JLL Phoenix Office Insight Report, but a single 721,000-square-foot move-out by Chase Bank negated the gain.

 

The scenario underscores the improving – but still-vulnerable – state of the local office market, according to Curtis Hornaday, Research Manager for JLL in Phoenix.

 

“Considering the extreme dynamics of the past 18 months, the metro Phoenix office market is performing well, with rents rising and demand accelerating,” said Hornaday.

Chase Bank, Downtown Phoenix, AZ

“Since April, over 562,000 square feet of speculative office product has started construction to meet that demand through high-end, Class A projects like The Grove on the Camelback Corridor and The Beam on Farmer in downtown Tempe.”

 

JLL’s Q3 report notes that direct average asking rates for Phoenix office space increased 2.8 percent year-over-year, but Class A vacancy rose to 20.4 percent, surpassing the 20 percent mark for the first time since 2014.

This was due, in part, to negative absorption and, in part, to the delivery of buildings 7 and 8 (totaling 300,000 square feet) at Allred’s Park Place Center in Chandler.

 

According to Hornaday, the heavy amenities at The Grove and The Beam are already generating strong pre-lease activity, which should sidestep any significant additional gains to overall vacancy.

A myriad of activity contributed to Phoenix’s more than 604,000 square feet of Q3 positive office absorption, including move-ins by Dansons (200,000 square feet in Central Scottsdale) as well as Align Technology and Robinhood (a total 82,000-square-foot gain at Watermark in Tempe).

 

However, the move-out of Chase Bank (721,000 square feet in downtown Phoenix), caused the quarter to end with negative absorption of 152,000 square feet.

Allred’s Park Place Center in Chandler, AZ

 

Direct average asking rates increased to $29.08 per-square-foot, up from the $29.04 posted in Q2 2021. With sublease rental rates now 14.7 percent ($4.27 per-square-foot) lower than direct rates, a prolonged flight-to-quality period has created opportunities for growth-oriented users.

 

“When you look at the Phoenix office market overall, the story is a positive one,” said Hornaday. “Companies continue to relocate and expand here, viewing Phoenix as a high-quality, lower-cost business environment with an exceptional workforce.

 

"Working with organizations like GPEC, which was just named the top economic development organization in the world by IEDC, gives Phoenix a huge advantage over other major U.S. metros.”

 

 

Contact: 

 

Stacey Hershauer

Phone: +1 480 600 0195               

Email: stacey@focusaz.com

www.jll.com.

JLL welcomes leading Phoenix retail team of Regan Amato and Ryan Tanner as consumer activity rebounds

 

 Regan Amato

PHOENIX, AZ – Underscoring a retail market in a slow-but-steady rebound, the Phoenix office of JLL has expanded its metro Phoenix retail market coverage with the addition of two new, award-winning team members, Regan Amato and Ryan Tanner.

 

Amato and Tanner focus on tenant and buyer representation, with full-service retail and entertainment expertise in tenant representation, institutional landlord leasing, retail development and disposition initiatives.

 

A 16-year industry veteran, Amato joins JLL as Senior Vice President with a track record of over 500 completed transactions and nearly 7 million square feet of negotiated space exceeding $750 million in total consideration.

 

Ryan Tanner

 Amato is a full-service, master retail broker with a multi-market network. His experience includes leading the regional roll-outs of multiple credit-level users and the representation of numerous prominent Valley retail centers.

 

Prior to joining JLL, Amato served as a Senior Director for a leading global commercial real estate affiliate.

Tanner serves as a JLL Associate, leveraging market knowledge and technology to deliver success for prominent owners, users and developers.

 

 Most recently, he worked alongside Amato within a top-producing retail team. He has relocated to JLL along with Amato to continue to grow that program.

 

“Regan and Ryan’s full-service experience represents a new level of JLL retail coverage in Phoenix and valuable perspectives for our clients – something that is particularly welcome during this very unique time for the retail market,” said JLL Senior Managing Director Pat Williams.

 

“We’re committed to help them grow, with support from our existing team and strong global platform.”

Pat Williams

According to JLL, retail sales grew 15.8 percent between July 2020 and July 2021, marking a slow-but-steady return of consumers who are eager to resume their pre-pandemic shopping and dining activity.

 

Amato holds a bachelor’s degree in Regional Development and General Business Administration from the University of Arizona. 

He is an active participant with ICSC and NAIOP, and supports Executive Council Charities, Junior Achievement of Arizona and Brokers for Kids.

 

Tanner holds a bachelor’s degree in Marketing from the University of Arizona. He is a member of ICSC and NAIOP.

 

 

Contact: 

 

Stacey Hershauer

Phone: +1 480 600 0195               

Email: stacey@focusaz.com

www.jll.com.