An East Coast office space developer plans to build speculatively in the Austin area as its first foray into Texas.

Williamsville, N.Y.-based North Forest Office Space said its model has been successful in other parts of the country during the recession, building and leasing much of its space. And despite office vacancy rates in this area hovering at about 16 to 25 percent, depending on the submarket, and a handful of prominent office buildings heading to foreclosure auction, the out-of-state developer thinks it has identified a profitable niche by offering moderate costs and adjustable space...