Two iconic Austin office properties, Capitol Tower and Bridgepoint Square, recently sold for $64.5 million, marking a significant 49% reduction in value from their original purchase prices. This sale sheds light on Austin’s shifting office real estate market, where high vacancy rates are reshaping property values.
- Capitol Tower: Purchased in 2012 for $49 million, this 20-story building in Austin’s central business district was part of the recent combined sale. Despite LEED Silver and Energy Star certifications, Capitol Tower had only 69% occupancy as of September 2024.
- Bridgepoint Square: Acquired in 1997 for $78 million, this five-building campus on 27.7 acres northwest of downtown Austin offers amenities like a gym, cafe, volleyball court, and parking structures. By September 2024, it was only 52.5% leased, reflecting broader market challenges.
Together, the properties span 616,000 square feet. Despite Austin’s office vacancy rate at a high 27.8%, the city’s office properties trade at an impressive $379 per square foot on average—over twice the national rate of $171 per square foot.
This steep discount signals ongoing struggles within Austin’s office sector, even as high demand keeps certain property values above national trends.
Sources:
- CommercialSearch – EQC Sells 2 Office Assets in Austin for $65M
- CommercialSearch – Capitol Tower
- CommercialSearch – Bridgepoint Square
- JLL – Capitol Tower
- JLL – Bridgepoint Square
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