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Austin Building Owners Hold Tight, So Far

AUSTIN-The gap between buyers and sellers in Austin has yet to narrow despite the economic times. First, most large building owners don't have to part with their properties. And second, there are no fire-sale deals and rent forecasts are dismal.

By Tim Green | Updated on September 23, 2001

AUSTIN-Every deal has to have two ingredients: a willing seller and a willing buyer. But, in Austin’s office market, there’s another crucial, a price agreeable to both parties. And, that’s missing. As a result, the market for large Austin office buildings has slowed.

“For the last couple of months I would say it’s been slowing gradually,” Randy Beaman of the DuPont Group, tells GlobeSt.com, adding that the slowdown has been coming for the past year. “It’s kind of an odd market.”

Sellers, or would-be sellers, aren’t ready to meet the prices of buyers hoping to pick up some cheap real estate even as occupancy rates decline and the amount of vacant sublease space show signs of decreasing. Building owners are sitting on properties still bringing in rent, but buyers see future rents sliding.

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