Financial Technology Firm Relocates HQ to Austin

Green Dot Corp. is the latest company to leave California for Texas, relocating its corporate headquarters from Pasadena, CA to Austin. Green Dot leases more than 141,500 square feet at Pasadena Corporate Park, according to CoStar. Major companies such as Oracle, Tesla and data mining firm Palantir Technologies have announced plans to relocate or expand to Texas including Austin, a city that has gained the attention of national and offshore real estate investors.

According to the annual AFIRE International Investor Survey, a historical shift in foreign real estate investment in the United States is underway, moving from large urban centers toward smaller cities especially Austin. This is the first time a so-called tertiary market, Austin, placed first in the survey ranking. Austin rose from 10th place last year. Meanwhile, New York, in first place last year, fell to fifth place this year.

Overall vacancy in the Austin office market has reached 15.4 percent, up from 10.2 percent in April 2020, according to a recent report by NAI Partners. The increased vacancy rate reflects the recorded net absorption of negative 727,000 square feet, down from positive 713,000 square feet at this time in 2020. There is 7.5 million square feet currently under construction, with half of that space available. There have been 16 properties totaling 2 million square feet delivered so far in 2021 with an occupancy rate of 30 percent. The vacancy rate for class-A properties is at 18 percent, up from the prior period at 11.7 percent. The asking price for office properties is currently at an average annual rate of $38.76 per square foot, down about 0.3 percent from this time last year at $38.86 per square foot.