The Capital Area Council of Governments lease came with $2 million of tenant improvements for a consolidation plan put into play in late May with its original deal for the center at 6800 Burleson Rd. "This involves mutual contributions, we're both kicking in to the construction of the premises," says Walter Foster, senior vice president for the property owner, KBS Realty Advisors of Newport Beach, CA.
Foster tells GlobeSt.com that Bergstrom Technology Center was vacant when KBS Realty acquired it from Lockheed Martin Corp. in the late 1990s. "Over time, we've been finding users for various segments of the building," he explains, adding that the space taken down by Capital Area Council of Governments had been vacant since the 13-year-old building's purchase.
In late June, a KBS broker had said the tech center's mixed-use space was going for $4.80 per sf to $15 per sf. Foster, though, is mum about the existing rates.
Foster says the center has been attracting strong interest, especially in the past year, because activity in Austin's southwest sector is on the rise. "Our leasing team has current prospects for this building and we're receiving regular leasing inquiries," Foster adds.
W. Gaines Bagby with CB Richard Ellis' Austin office represented Capital Area Council of Governments. Greg Johnson of Transwestern Commercial Services' Austin office represented KBS Realty.
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