Where is Facebook Located in Austin?
Last April, I posted about Facebook opening their first U.S. office outside of Pala Alto in Austin, Texas; see “Facebook Friends Austin”. While Facebook has been operating in Austin for several months, yesterday they celebrated the official grand opening of the Austin office.
Big Coup for Austin
Currently, Facebook has 60 employees in their approximately 30,000 square-foot office at 300 West Sixth Street in downtown Austin and has committed to hiring 200 employees at its Austin office over the next four years. You have to believe there might be a few new employees who graduate from “The University” situated a few blocks away.
Facebook leaders first started considering expansion early this year. “We did evaluate a number of cities in the Central and East coast time zones so we could expand our footprint of coverage so we could support our users and developers and advertisers, and pretty quickly Austin rose to the top of the list,” said Sarah Smith, the head of on-line operations for Facebook Austin.
While, 200 people may not represent a major corporate presence, its a fairly substantial lease for Downtown Austin and landing such a high profile company only further cements Austin’s reputation as a technology hub for a city that has been leading the country in job creation over the past year.
Austin Office Market Update (3Q 2010)
The Austin Office market ended the third quarter 2010 with a vacancy rate of 14.5%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 215,479 square feet in the third quarter. The average quoted asking rental rate for available office space, all classes, was $24.79 per square foot per year at the end of the third quarter 2010 in the Austin market area. This represented a 0.9% increase in quoted rental rates from the end of the second quarter 2010, when rents were reported at $24.56 per square foot. The average quoted rental rate for Class A office space in Austin’s CBD where Facebook is located is $34.99. Suburban Class A rental rates averaged $26.49 citywide at the end of the 3rd quarter.
Net absorption for the overall Austin office market was positive 215,479 square feet in the third quarter 2010. That compares to positive 587,838 square feet in the second quarter 2010, negative (164,644) square feet in the first quarter 2010.
The office vacancy rate in the Austin market area decreased to 14.5% at the end of the third quarter 2010. The vacancy rate was 14.7% at the end of the second quarter 2010, 15.4% at the end of the first quarter 2010, and 15.3% at the end of the fourth quarter 2009.