Expansions Signal Near-Term Growth

"2009 was a slow year, especially compared with 2008," comments Andy Smith with Thomas Properties Group, which owns both buildings. "It's almost as though when the calendar page turned over, activity picked up. I'm not going to say it's robust, but it's steady, it's healthy."

The reason for the uptick in activity? "Tenants that needed to make decisions six months or a year ago but who were hesitant I think now are stepping up and saying 'we need to address this real estate need,'" Smith explains.

Prime New Ventures, which is headquartered at One American Center at 6th Street and Congress Avenue, expanded its second-floor office from 12,000 square feet to 17,000 square feet. Smith tells GlobeSt.com that the space Prime New Ventures took was actually space they'd once leased some years ago.

"We'd leased it out to someone else when they contracted, then that tenant moved out," Smith says. "Prime decided it needed more space, so it reconstituted it back." Chris Marchbanks with CresaPartners was the tenant representative in the transaction.

Rogge Capital Management, in Frost Bank Tower, expanded from 2,900 to 4,800 square feet on the 27th floor. Smith says another tenant had moved out from the space in which Rogge Capital was interested. Derek Lewis with Stream Realty represented the tenant on the deal.

Smith, who represented Thomas Properties Group with colleague Mark Miller in both transactions says Austin is starting to see a positive upturn in activity. LegalZoom.com Inc. is moving its headquarters into the capital city, as is Hanger Orthopedics Group Inc. Facebook has also committed to the area, and hopes to eventually create 200 jobs in the process. These were, Smith says, very good announcements with which to start 2010.

Meanwhile, activity is percolating in the Thomas Properties Group-owned buildings. Smith declined to discuss specifics, only to say there would be announcements coming within the next 30 to 45 days. "Our pipeline is starting to fill again," he adds.