EY Ventures Lists Mostly Leased Austin Office Building

A top-performing office building in one of Austin’s most competitive submarkets recently hit the market.

EY Ventures listed the Arboretum Atrium, a 91,000-square-foot building at 9737 Great Hills Trail in Northwest Austin, the Austin Business Journal reported.

The three-story building is 98 percent leased, with one 2,200-square-foot space available on the first floor. Occupancy has consistently stayed above 92 percent since 2018, significantly outperforming the rest of the submarket, which had a 16.7 percent vacancy rate in the second quarter, according to Cushman & Wakefield, which has the listing.

Most of the building’s leases extend into 2028 and beyond, providing long-term income stability. The building’s competitive rent pricing — about $27 per square foot compared to $32 in the surrounding micro-market — has helped drive consistent leasing success.

“There’s substantial room for a new owner to push rents while maintaining tenant demand,” Cushman’s Matt Murphy said.

The property’s walkability is another draw, with nearby access to restaurants and retailers such as Starbucks, Trader Joe’s and Fire Bowl Cafe.

The asking price is undisclosed. Its taxable value is $17 million, according to the Travis Central Appraisal District.

Tenants include tech companies Keyence and SourceDay and gaming company Panic Button.

Built in 1984, the building is also bucking the trend for older office buildings, which generally have performed poorly since the pandemic. Office tenants prefer new, amenity filled office buildings in vibrant areas. But location is a big part of the sales pitch.

The area has become “the unofficial technology hub with the Domain and Arboretum as the two most walkable mixed-use destinations north of the river,” Franklin Street’s Ryan Bohls told the outlet.

The world’s most-profitable company, Nvidia, is poised to significantly expand its Austin presence with a lease at the One Uptown office tower near the Domain, adding to the influx of tech offices. Meanwhile, leasing is sluggish in Downtown Austin.