Top 10 Austin Medical Office Buildings
- Aug 10, 2018
Austin has seen tremendous expansion in the office sector, attracting technology companies such as Google, Facebook and Expedia as one of the fastest-growing metro areas in the country. After Amazon acquired Whole Foods in 2017, the state capital also made the e-commerce giant’s shortlist for its second headquarters.
Furthermore, Austin boasts an established life sciences sector, with the metro being home to an educated talent pool. According to the U.S. Census Bureau, the number of jobs in education and health services increased by 3.2 percent year-over-year as of this February.
With institutes such as Dell Medical School at The University of Texas at Austin, Texas A&M Health Science Center College of Medicine, Texas Life-Sciences Collaboration Center and plans for the redevelopment of the 14-acre University Medical Center Brackenridge campus, Austin’s medical office footprint is something worth discussing. Yardi Matrix compiled a list of the largest MOBs in the metro area, with the biggest properties clustered around downtown, in the city’s long-standing medical district.
10. Cedar Park Medical Office Building II
Completed in 2014, Healthcare Trust of America’s 86,000-square-foot facility rises in one of Austin’s most sought-after submarkets, Cedar Park. The area posted 14.6 percent office vacancy rates earlier this year, in May, with roughly 225,000 square feet of available office space. The current owner picked up the garden-style building in April 2017 for $15.4 million from Duke Realty. Located at 1401 Medical Parkway, the asset is nearly 90 percent occupied.
9. St. David’s Plaza
Located at 1015 E. 32nd St., in the metro’s Central submarket, St. David’s Plaza encompasses 87,297 square feet of medical office space. The five-story property has been under the ownership of St. David’s Foundation since its development in 1990. The mid-rise building is situated in one of Austin’s more affordable regions—asking rates for office space averaged $31.09 in the Central area as of May 2018, Yardi Matrix data shows.
8. Seton Hays Medical Office Building 1
The first green building on our list is Healthcare Trust of America’s four-story facility located at 1180 Seton Parkway in Kyle, Texas. The 96,829-square-foot property came online in 2010 and received LEED Silver certification the next year. Seton Hays Medical Office Building 1 is subject to a long-term ground lease, held by Seton Healthcare and set to expire in March 2059.
7. Seton Northwest Medical Plaza
Ventas acquired the 105,524-square-foot facility from Verity Health in 2004 and the property has been a part of the medical REIT’s portfolio ever since. Built in 1987, Seton Northwest Medical Plaza is nearly 75 percent leased to a notable tenant base that includes United Surgical Partners, Dell Children’s Medical Center of Central Texas, Seton Heart Institute and Seton Brain & Spine Institute.
6. Medical Oaks Pavilion I
Completed in two phases, in 2000 and 2003, the 110,000-square-foot asset is located at 12201 Renfert Way, in North Austin. HealthCare Facilities Development’s three-story property is 100 percent occupied and is backed by a long-term loan provided by Lincoln Financial Group. The permanent financing dates back to June 2008 and is scheduled to mature in July 2023.
5. Seton Williamson Medical Plaza I
The Class A property provides 115,300 square feet of space and is approximately 30 percent leased to a notable roster of tenants such as Texas Oncology, Austin Gastroenterology and University Orthopaedic & Sports Medicine Clinic. Situated in the metro’s Round Rock submarket, at 301 Seton Parkway, Ventas’ asset was developed in 2008 and provides a parking ratio of 5.3 spaces per 1,000 square feet.
4. Mesa Oaks
The most recently completed property on our list, Mesa Oaks, came online in 2015 and encompasses 119,755 square feet of space. Located at 5920 W. William Cannon Drive, in Southwest Austin, the asset features six two-story buildings across 10.3 acres. The office condominiums are fully leased. The garden-style facilities house tenants such as Austin Pulmonary Consultants, Texas Council of Administrators of Special Education and The Fox Alliance.
3. Midtown Medical I & II
Encompassing 146,948 square feet of Class A space, the two-building property was completed in 2003 and 2013. Located at 901 and 911 W. 38th St., in Austin’s Central Medical District, HTH Capital’s asset is in the proximity of the Heart Hospital of Austin and Seton’s main campus. Midtown Medical is currently 3.8 percent vacant and home to roughly 25 tenants.
2. Medical Park Tower
The seven-story medical office building is the oldest on our list. Completed in 1966, the property has been a part of Ventas’ portfolio since 2004. Located at 1301 W. 38th St., Medical Park Tower comprises 147,700 square feet and provides 561 parking spaces. The building is nearing full occupancy, with only three spaces totaling roughly 4,000 square feet available for lease.
1. Clinical Education Center at Brackenridge
The largest medical office asset on our list is the 150,000-square-foot Clinical Education Center at Brackenridge. Centrally positioned in downtown Austin, at 1400 N. Interstate 35, the three-story structure is subject to a 42-year ground lease held by Central Health and scheduled to expire in 2055. In September 1995, Central Health sold the leasehold interest that includes the Clinical Education Center at Brackenridge, along with a 399-bed hospital, to Ascension Health.
Images courtesy of Yardi Matrix