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Austin-Round Rock

San Marcos' population boom! 

(5/22/2015)

SAN MARCOS - The fastest-growing city, for the third consecutive year, was San Marcos with U.S. Census numbers showing the city’s population swelled by 7.9 percent between 2013 and 2014 to 55,892.

As the city keeps growing, so does the interest to invest in property. The presence of Texas State University, the San Marcos River and affordability — compared to Austin — also make the city marketable.

City of San Marcos Mayor Daniel Guerrero said the city has been planning for the population growth over the years, putting into place different infrastructure projects to make sure they keep up with the boom.

Including San Marcos, Texas was home to six of the top 13 fastest growing cities by percentage. Others on the list included Georgetown, Frisco, Conroe, McKinney and New Braunfels.

Read more at KXAN.

Austin: Dell Inc. computes need for 200 jobs 

(5/21/2015 3:00:00 PM)

AUSTIN - Dell Inc. is hiring for more than 200 sales positions in Central Texas as a part of a larger hiring spree.

Company spokesman David Frink said that Dell has accelerated its hiring “to increase our ability to serve customers around the world."

Dell is also continuing to hire globally for strategic development areas “particularly in hardware and software development, and engineering,” he said.

Those interested can learn more at http://www.dell.com/career.

Read more at the Austin American-Statesman.

IRR: Austin multifamily 2015 viewpoint 

(5/20/2015)

AUSTIN - Strong population growth, the attraction of new business, and low unemployment continue to drive the expansion of the Austin multifamily market.

Overall vacancy has held steady at just under 5 percent in the past two years but is expected to increase slightly in 2015, as more than 13,000 new units are expected to be completed.

Rental rates for both A and B/C property classes continue to increase, with units in central and west Austin seeing the highest rates, as demand remains strong.

Cap rates are steady across the metro area and will likely decrease only slightly throughout 2015.

Discount rates decreased slightly in 2014 and will likely remain flat over the coming year.

Downtown Austin continues to be a hotspot for new development, with nearly 2,000 new multifamily units under construction.

Given continued population growth to drive the demand for the increased number of new multifamily units becoming available, the market should continue to remain balanced and strong into 2015.

Austin Multifamily Snapshot
  Urban
Multifamily
Class A
Urban
Multifamily
Class B
Suburban
Multifamily
Class A
Suburban
Multifamily
Class B
Going In
cap rates
5.5% 6.3% 5.8% 6.3%
Discount
rates
7.5% 8.5% 8.0% 8.5%
Market rent
($/unit)
$1,556 $792 $1,104 $816
Vacancy rate 13.4% 1.7% 6.1% 3.5%


See Integra Multifamily Annual Viewpoint 2015.

For more Multifamily news, check out Austin Market Research and Austin Multifamily NewsTalk.

Cushman & Wakefield: Austin Industrial Snapshot 1Q 2015 

(5/19/2015 8:00:00 AM)

AUSTIN - Austin experienced 199,547 sf of direct absorption across all industrial property types during first quarter 2015. Q1 2015 marked the eighth consecutive quarter of positive direct absorption for the total market, dating back to Q2 2013.

The Round Rock (RR) submarket posted the highest levels of absorption for Q1 2015, recording 85,241 sf of absorption.

The Q1 2015 overall vacancy rate was recorded at 9.6 percent, 0.9 percentage point higher than the Q4 2014 rate of 8.7 percent.

The average direct rental rate recorded for all industrial property types was $9.36 per sf for 1Q 2015, 4.0 percent higher than the average rental rate of $9.00 per sf in Q1 2014.

Austin Industrial Report 1Q 2015
Submarket Comparison
Submarket Inventory
SF
Overall
Vacancy
Rate
YTD Overall
Net Absorption
Central 18,900 0.0% 0
Far Northwest 4,480,259 4.5% 47,499
North Central 9,725,621 5.9% 69,509
Northeast 12,006,106 16.3% -35,818
Northwest 4,139,606 5.6% 59,053
South Central 1,434,649 3.6% -1,724
Southeast 9,223,111 8.8% 44,987
Southwest 272,660 17.6% -12,500
Round Rock 3,578,300 13.4% 85,241
Totals 45,050,853 9.6% 256,247


See Austin Industrial Snapshot 1Q 2015 (PDF) for the full report.

Don't miss out on Texas cities' industrial NewsTalk.

Easy find data at Austin Market Research.

Austin's Trifecta Square brings $3.3M 

(5/18/2015)

AUSTIN - The 52-unit Trifecta Square Apartments at 8033 Gessner Dr. have been sold for $3.3 million, or $62,500 per unit.

The community was built in 1976 and is located in the N. Lamar multifamily submarket.

Amenities include laundry facilities, public grills, a playground and pool.

Read more at CoStar Group.

Colliers: Austin industrial report 1Q 2015 

(5/18/2015)

AUSTIN - Colliers International has released its first quarter 2015 Austin Industrial Market Research Report.

Austin’s industrial market rental rates have risen after nearly a decade of stagnant rates.

Though vacancy increased slightly over the quarter from 8.4 percent to 8.8 percent, likely due to the high amount of industrial product delivered last year, Austin’s citywide vacancy rate has been steadily decreasing since 1Q 2010.

Austin’s average industrial vacancy rate rose by 40 basis points over the quarter from 8.4 percent to 8.8 percent. However, since 1Q 2014, vacancy has decreased from 9.6 percent.

Austin’s industrial market posted 19,898 sf of negative net absorption in first quarter. Austin’s industrial leasing activity, which includes renewals, reached 228,000 sf in first quarter.

Austin Industrial Market Summary
Market Rentable
Area
Total
Vacant SF
Total
Vacancy
Rate
1Q 2015
Net
Absorption
4Q 2014
Net
Absorption
North 15,242,940 1,244,821  8.2% 39,268 228,652
Southeast 12,801,662 1,255,720 9.8% -387,327 -29,678
Northeast 12,603,385 1,364,576 10.8% 38,253 248,520
East 4,788,283 200,917 4.2% -20,458 25,193
Northwest 4,750,169 216,201 4.6% -23,978 -13,453
Southwest 3,007,078 50,044 1.7% -12,310 36,696
Austin total 67,272,810 5,910,120 8.8% -19,898 598,933


*ranked by rentable area

See the full Collier's International Austin Industrial 1Q 2015 report. Also see Austin Market Research and Austin NewsTalk

Colliers: Austin office report 1Q 2015 

(5/15/2015 6:59:00 AM)

AUSTIN - Office vacancy remains low and rental rates continue to steadily rise across the Austin market in first quarter 2015, according to Colliers International's 1Q 2015 report.

Six buildings totaling 696,000 sf were delivered in 1Q 2015, and almost 3 million sf of office space is currently under construction.

The citywide average rental rate increased by 1.9 percent from $28.72 per sf to $29.26 per sf over the quarter.

Austin was the third fastest growing metro area in the nation during the past year with the population expanding by 3 percent between July 2013 and July 2014, according to the U.S. Census Bureau.

Austin Office Market Indicators
  4Q 2014 1Q 2015
Citywide net
absorption (SF)
390,000 392,000
Citywide avg.
vacancy
9.1% 9.2%
Citywide avg.
rental rate
$28.72 $29.26
Citywide delivered
inventory (SF)
131,500 696,300
Class A Rental Rate    
CBD $42.26 $43.03
Suburban $31.15 $31.46
Class A Vacancy    
CBD 9.7% 9.7%
Suburban 10.2% 10.6%


Source: Colliers International

See the full 1Q 2015 report, including previous quarters.

Do you need other sources for Austin office? Save time! Go to Austin-Round Rock Market Research and look under the Office category.

200,000-SF Georgetown Sheraton Texas Hotel goes up! 

(5/14/2015)

GEORGETOWN - Construction on the new $65 million Sheraton Hotel and Conference Center is underway and expected to deliver by summer 2016.

The Sheraton Georgetown Texas Hotel and Conference Center — located on Rivery Blvd., just west of I-35 — will stand seven stories tall, stretch nearly 200,000 sf and have more than 220 rooms.

A three-level parking garage and a 30,000-sf conference center are accompanying the hotel as part of The Summit at Rivery Park project.

Hundreds of new jobs in Central Texas will soon be available thanks to this new high-rise hotel.

Read more at KXAN.

Austin 61,000-SF SunGard Inc. sold with others 

(5/14/2015)

AUSTIN - A Florida company has acquired eight former SunGard Inc. data centers in several cities, including a 61,000-sf facility at 8025 N. I-35.

As part of the deal with SunGard, Vxchnge Inc. agreed to retain the workers at each acquired location.

Vxchnge, which was founded in 2013, now operates data centers in 15 metropolitan markets.

Read more at the Austin Business Journal.

Bastrop homes underway in River's Bend at Pecan Park 

(5/13/2015 8:59:00 AM)

BASTROP - Developers have broken ground at the Headwaters residential portion of the 311-acre River’s Bend at Pecan Park project along SH 71, with plans to have homes available as early as fall 2015.

“The Headwaters section is the initial section of our residential community and will include a number of carefully planned features that will set the tone for River’s Bend, including a neighborhood park, large lots and design features that will enhance the desired close community feel,” said Duke McDowell, the developer for the mixed-use project.

McDowell announced David Weekley Homes and Scott Felder Homes will be the builders for Headwaters’ 90 home sites.

The single-family residences will include a minimum of 75 percent masonry, all rear yards will be fenced and front yard will include irrigation systems.

The residential portion of the Pecan Park project is comprised of over 200 acres that have been conceptually designed into seven sections with approximately 530 lots. Headwaters is the first of the residential sections to break ground.

The Scott Felder homes at Headwaters will include one- and two-story plans designs ranging from 1,500 sf to 2,800 sf.

David Weekley Homes will include 65-foot home sites with several one-story floor plans with prices expected to range from the low $200,000 and upwards.

The commercial portion of the development, which includes 80 acres, fronts the south side of Texas 71, and is in the northeast corner of the development.

Headwaters’ current design includes a large greenbelt located along a three-quarter mile stretch on the Colorado River, four acres designated for a future community center, and hike and bike trails throughout the neighborhood that will connect to community parks and link to roadways leading to the city’s historic downtown.

Read more at the Austin American-Statesman or see Pecan Park for more information about the development.

ABoR: Austin area home sales April 2015 

(5/13/2015)

AUSTIN - The Austin Board of Realtors has released home sales facts for April. Below is a sample of the entire report released May 10, 2015.

  • The median price of existing single-family homes increased to $270,565, up 6.1 percent from March 2015.
  • Existing single-family home sales increased 3.5 percent from March 2015 with 2,142 sold units.
  • Condos increased in price to $225,000, up 2.3 percent from March 2015.
  • Existing condo sales increased 2.1 percent in April 2015 over March 2015 with 245 sold units.
     
Austin Region Sales and Price Activity by Units Sold
MLS Wide Median Price
Apr. 15
Price Chg.
Apr. 14
Units Sold
Apr. 15
Sale Chg.
Apr. 14
ACTRIS* (single-
family)
$270,565 13.7% 2,142 1.6%
ACTRIS (Condo) $225,000 5.5% 245 -14.9%
Region Cities**        
Austin $345,000 9.5% 919 7.4%
Round Rock $237,000 -0.4% 234 6.4%
Georgetown $254,000 7.4% 128 -5.2%
Cedar Park $273,750 9.6% 112 12.0%
Pflugerville $224,250 18.7% 112 -13.8%
Leander $212,750 19.4% 98 -3.9%
Kyle $167,600 1.0% 67 15.5%
Hutto $175,000 4.8% 43 -29.5%


*Austin/Central Texas Realty Information Service
**Data include single-family only and represent select region cities that sold 40 or more units during April 2015.

See the full report from the Austin Board of Realtors.

Click here for Austin Market Research that's free and no ads. Ditto here Austin NewsTalk.

Mega Furniture finds a comfy spot in Austin 

(5/13/2015)

AUSTIN - Phoenix-based Mega Furniture opened a 31,736-sf store near Lakeline Mall at 13945 Research Blvd.

Mega Furniture also signed three deals in San Antonio for two stores and a 46,200-sf distribution center.

Founded in 2002 by two immigrants from India, Mega Furniture currently has 11 Phoenix locations with more than 170 employees.

According to the company website, “Mega Furniture will expand their stores throughout San Antonio and Austin during 2015 and 2016 and will bring their strong brand name and customer service platform to the Lone Star State.”

Read more at the Austin Business Journal.

Granite sells Austin-area senior housing properties for $23M 

(5/12/2015)

GEORGETOWN, PFLUGERVILLE - Granite Investment Group has sold two senior housing properties for $23.4 million. The sale included Georgetown’s Park Place Care Center and Assisted Living (PPCCAL) and the Pflugerville Care Center (PCC).

PPCCAL was built in 1997 on nearly seven acres and includes a 116-bed nursing facility as well as a 48-bed assisted-living facility.

It offers 24-hour skilled nursing care, short- and long-term rehabilitation, common areas, private and semi-private rooms, activity directors, spiritual care and an order-by-menu dining program.

An affiliate of Granite Investment Group originally purchased the property in 2007 for $9.2 million.

PCC is a 111-bed skilled nursing facility built in 1991 on 3.2 acres. The facility provides residents with short- and long-term rehabilitation care.

An affiliate of Granite Investment Group originally purchased PCC property in 2005 for $9.1 million.

Read more at Texas Real Estate Business.

TAR's most, lease profitable home remodels for Austin 

(5/11/2015)

AUSTIN - The Texas Association of Realtors has released its 2015 edition of the Texas Remodel Valuation Report, which is based on data from the 2015 Cost vs. Value Report by the National Association of Realtors and Remodeling magazine.

Home remodeling projects in Austin had the greatest overall recoup costs among Texas’s five major cities. Stone veneer accents were the most profitable project, recouping 123.7 percent of the total project cost. Sunroom additions were the least profitable, recouping only 51.8 percent of the cost.

Here are the top and bottom projects, ranked by recoup cost:

Top to Bottom Projects by Recoup Cost
Top five projects Bottom five projects
Project Cost
Recouped
Project Cost
Recouped
Stone veneer accent 123.7% Sunroom addition 51.8%
Deck addition (wood) 116.0% Upscale garage addition 61.7%
Entry door replacement 113.2% Home office remodel 62.2%
Window replacement (wood) 108.1% Upscale master suite addition 67.9%
Garage door replacement 107.6% Upscale deck addition (composite) 69.4%


Source: Texas Association of Realtors

Read more at the Texas Association of Realtors.

Bulletproof: despite oil crash, Texas home sales surge 1Q 

(5/8/2015 9:00:00 AM)

TEXAS - The Texas residential markets remained immune to the drastic fall in oil prices, as the Lone Star State posted exceptionally strong home sales in first quarter 2015, according to the Texas Association of Realtors.

With oil falling from $107 a barrel last summer to less than $60 a barrel currently, many have been predicting awesome woes for Texas housing markets.

Indeed, the rig count is down substantially and thousands of layoffs have been announced.

But the Houston Association of Realtors recently reported 1Q 2015 sales were ahead of 2014 sales — and that is significant since last year was the strongest year ever for home sales in Houston.

Houston’s bright story is true around the state — 1Q was hot for Texas housing markets and inventory of homes for sale fell to an all-time low.

“The impact of falling oil prices has not yet hit Texas real estate, especially in its metro areas,” says economist Dr. Jim Gaines of the Real Estate Center at Texas A&M. But he added that softening could happen in Texas realty in the last part of 2015.

The TAR reported 57,818 homes were sold in Texas in 1Q 2015, a 4 percent increase from 1Q 2014. Prices were strong. The Texas 1Q median was $186,500, up about 8 percent over last year.

“The first quarter of the year is typically a slow period for homebuying and selling, so we were thrilled to see strong home sales gains statewide in the first part of 2015,” says Scott Kesner, chairman of the Texas Realtors.

Read more at Realty News Report.

Apple 215,000-SF office lease in SW Austin 

(5/8/2015)

AUSTIN - In another sign of its expanding Austin presence, technology giant Apple Inc. has signed a lease for an entire 215,000-sf Capital Ridge office building under construction in Southwest Austin.

The seven-story building is being developed by Austin-based Riverside Resources and is rising on a bluff near Capital of Texas Hwy. and Bee Cave Rd. Opening is set for second quarter 2015.

Apple has been growing its presence in Austin, and the company is in line for millions of dollars in tax breaks to do so.

In the latest employee figures verified by the City of Austin and Travis County, Apple had 4,515 total employees in Austin as of the end of 2014, including 794 contract workers.

The Capital Ridge lease comes just weeks after Apple finalized the purchase of Riata Crossing North, a 350,000-sf office complex in Northwest Austin where its lease was due to expire this year. Apple paid about $84 million for the complex, or roughly $240 per sf.

Riata Crossing is near the new Americas Operations Center that Apple is building. Apple is scheduled to receive about $35 million in incentives for eventually adding 3,600 employees in Austin and making a major capital investment.

Apple has valued its new campus, located at W. Parmer Lane and Delcour Dr., at more than $348 million, according to documents filed with the city.

Read more at the Austin American-Statesman.

Westin looking for 300 employees in Austin 

(5/7/2015 9:00:00 AM)

AUSTIN - The soon-to-debut Westin Austin Downtown is looking to hire 300 employees. The 366-room hotel at 310 E. Fifth St., will open in July according to White Lodging, its Indiana-based developer.

Positions are available in a variety of departments including administrative, banquets, culinary, engineering, front office and housekeeping.

White Lodging has set up a hiring center at 522 E. Sixth St. and is open eight a.m. to five p.m. weekdays.

Applications can also be submitted online at whitelodging.com/yourcareer.

Read more at the Austin American Statesman.

Austin's 302-unit Estate on Quarry Lake sold 

(5/7/2015)

AUSTIN - The Estate on Quarry Lake, a 302-unit apartment complex at 4600 Seton Center Pkwy., has been sold.

Built in 1995, The Estate on Quarry Lake offers one- and two-bedroom units ranging from 621 sf to 1,177 sf.

Amenities at The Estate on Quarry Lake includes a business center, running trail, gated pet park, two swimming pools and a fitness center.

The acquisition was part of a 12-property portfolio encompassing 4,600 units that was purchased from Blackstone Real Estate Partners VII. Other properties in the deal are located in Denver, Atlanta and Houston.

Read more at the Austin Business Journal.

$197M buys the keys to Austin's Four Seasons hotel 

(5/7/2015)

AUSTIN - Strategic Hotels and Resorts will pay $197 million for the Four Seasons at 98 San Jacinto Blvd.

The sale of the 291-room luxury hotel — which will continue to remain affiliated with the Four Seasons brand — is expected to close this month.

“With spectacular views of Lady Bird Lake and easy access to Austin’s central business district, convention center and popular annual events, the Four Seasons Austin is well-positioned under our ownership to deliver the city’s most distinctive luxury hotel experience” said Strategic Hotels and Resorts chairman and CEO Raymond Gellein.

Strategic Hotels and Resorts owns about 20 hotels worldwide, specializing in “desirable and high-barrier-to-entry urban and resort markets.”

The Four Seasons Austin Hotel will be the company’s first hotel in Texas. Lodging Capital Partners and Prudential are the sellers.

Read more at the Austin American Statesman.

Drawbridge moves Younicos to seven-year lease in Austin 

(5/7/2015)

AUSTIN - San Francisco-based Drawbridge Realty has signed a new seven-year lease with Germany-based Younicos AG for approximately 32,500 sf at 3100 Alvin Devane.

The company will use the space as its U.S. headquarters and product-demonstration location.

Drawbridge Realty started a multimillion-dollar redevelopment — converting a former industrial flex building into a modern office space — of the 71,375-sf building in December, with completion originally scheduled for this month.

"This lease demonstrates the need for a well-designed functional office/R&D space that is five minutes from Bergstrom International Airport and downtown Austin," says Chris Elmendorf, vice president of investments for Drawbridge.

The renovated building also includes two large lobbies, each featuring staircases; open architecture and new glazing on existing internal wall panes, giving the interior an intentionally unpolished aesthetic; a new roof; 30 energy-efficient windows; and new mechanical systems throughout.

Read more at Globe St.

Total Wine & More swinging in on vines in Austin 

(5/6/2015)

AUSTIN - Total Wine & More plans to open two Austin stores at 5601 Brodie Lane and 11066 Pecan Park Blvd., Ste. 117.

Total Wine & More will open the 28,600-sf store in Sunset Valley on May 21 and a 31,000-sf store in Lakeline Mall Plaza later this summer.

The Lakeline store will include wide shopping aisles and an emphasis on customer education.

The Sunset Valley store will include a large showroom with beverage cabinets, walk-in wine and beer coolers, demonstration areas and tasting stations. The store will also include classrooms for wine and other beverage education for customers.

Both Austin stores will also offer locally made beverages as well as gifts such as cigars.

The Total Wine & More retail chain is based in Potomac, Md., and has eight locations in the Dallas and San Antonio metro areas.

Read more at Community Impact Newspaper.

Cushman & Wakefield's 1Q 2015 Austin Office Report 

(5/5/2015)

AUSTIN - As of February 2015 the Austin MSA’s unemployment rate of 3.4 percent is amongst the lowest in the top 50 largest metropolitan areas in the United States, according to Cushman & Wakefield's first quarter 2015 report.

A total of 753,514 sf of direct absorption was reported for the entire Austin market during 1Q 2015.

Such strong absorption can be attributed to the large amount of preleasing activity and subsequent deliveries of both the Seaholm Power Plant redevelopment and Colorado Tower.

Large tenants occupying these projects include: Parsley Energy (135,700 sf), Atlassian (48,303 sf) and Scott Douglas & McConnico (40,011 sf) in Colorado Tower and athenahealth (103,000 sf) and UnderArmour (35,300 sf) at the Seaholm Power Redevelopment.

Low vacancy rates, high absorption figures and an extremely active office market continue to push asking rates in the upward direction. The average full service overall rental rate was recorded at $32.78 per sf for 1Q 2015, 11.8 percent higher than that of the 4Q 2014 rate of $29.31 per sf.

New construction activity still continues to be a dominant force in the Austin office market. The CBD alone had almost 1 million sf completed during 1Q 2015.

It is expected that record low vacancy rates will be observed and that new historically high rental rates will be posted throughout the Austin market in the remainder of 2015.

Austin Office 1Q 2015
Submarket Inventory Overall
Vacancy
Rate
Under
Construction
 YTD
Construction
Completions
YTD Direct
Net
Absorption
YTD Overall
Net
Absorption
Overall Wtd.
Avg. All
Class Gross
Rental Rate*
CBD 9,339,913 6.0% 739,404 691,799 364,441 347,593 $43.84
Suburbs 35,620,641 9.4% 2,796,056 256,973 389,703 465,593 $30.92
Austin total 44,960,554 8.7% 3,535,460 948,772 753,514 822,336 $32.78


*Rental rates reflect asking $PSF/year

Click to view the full Austin Cushman & Wakefield 1Q 2015 Office report.

KFG's 271,000-SF investment doubles Austin holdings 

(5/5/2015)

AUSTIN - KFG Investment Co. has increased its industrial portfolio with the acquisition of six properties totaling 271,060 sf — nearly doubling its imprint in the Central Texas market.

The California-based company’s new assets include:

•  Techni Center 6 and 7 at 3714 Ed Bluestein Dr. — 124,390 sf;
•  Cameron Center, 8200 Cameron Rd. — 94,770 sf; and
•  Amorron 6 at 800 Paloma Dr. in Round Rock — 51,900 sf.

Major tenants in the newly acquired properties include Chip Semiconductor, Action Box Co., GTECH Corp. and Busch Semiconductor Vacuum Group. The properties were collectively 95.9 percent leased at the time of sale.

The sellers were TA Associates of Boston and Clarion Partners of New York.

KFG owns an additional 327,000 sf in the Austin region, primarily in Tech Ridge in North Austin near I-35 and in Round Rock.

Read more at the Austin Business Journal.

WinCo reaches milestone with 100th store in Lewisville  

(5/4/2015)

LEWISVILLE - WinCo Foods announces opening of its 100th store at 1288 W. Main St., the fifth to open in Texas.

The 83,000-sf store will initially employ approximately 150 individuals, about 140 of whom have been hired locally.

WinCo Foods is an employee owned discount grocery chain known primarily for being the "Supermarket Low Price Leader" in each market it serves.

Founded as a single warehouse format store in 1967, in Boise, Idaho, the chain grew steadily and in recent years more dramatically toward this 100 store milestone.

Read more at PR Newswire.

San Marcos: Vesper buys Wildwood student housing 

(5/1/2015 7:00:00 AM)

SAN MARCOS - Vesper Holdings announced it two latest acquisitions in Texas — Wildwood San Marcos and University Fountains in Lubbock.

Wildwood San Marcos is a 132-unit, 528-bed student housing community located in close proximity to Texas State University at 1655 Mill St.

Wildwood is comprised of 11 three-story residential buildings and a clubhouse.

The 216,000-sf property consists of 132 four-bedroom/four-bathroom flats and townhomes.

The units are among the largest in the market at 1,634 sf and all have a desirable one-bed/one-bath ratio.

Completed in 2013, Wildwood is one of the newest and most sought after properties in the off-campus market.

The property currently maintains a 99 percent occupancy rate, and all apartments are fully furnished.

Vesper purchased Wildwood at a discounted price in an off-market transaction.

Vesper is allocating $250,000 toward property improvements. These funds will be used to improve curb appeal, renovate the clubhouse and pool and upgrade the amenities.

Read more at PRNewswire.

Nerdwallet: Austin No. 9 in U.S. for tech jobs 

(4/30/2015)

AUSTIN - Austin has been named the ninth best place in the U.S. for tech jobs, one of only two Texas cities mentioned in the top 25.

The report comes from NerdWallet, which examined the nation’s largest 370 MSAs by the size of the tech industry, the income for tech jobs and the cost of living.

In the Austin-Round Rock-San Marcos region, about 58 of every 1,000 jobs are in tech, and the average salary is more than $84,000. Median rent totaled $1,000.

Dallas-Plano-Irving ranked 11th on the list.

Here’s a look a the top 11 cities and how they rank:

Tech Rankings by MSA
Rank MSA Tech jobs
per 1,000
Avg. tech
salary
Median
rent
Score
1 San Jose-Sunnyvale-Santa Clara, CA 126.3 $130,179.80 $1,640 75
2 Huntsville, AL 68.0 $92,296.22 $725 61.5
3 Seattle-Bellevue-Everett, WA 77.6 $108,472.21 $1,135 60.7
4 Durham-Chapel Hill, NC 66.2 $94,535.35 $870 58.2
5 Boulder, CO 70.8 $97,756.91 $1,168 54.4
6 San Francisco-San Mateo-Redwood City, CA 72.5 $113,093.16 $1,435 53.4
7 Washington-Arlington-Alexandria,DC-VA-MD-WV 79.1 $104,148.45 $1,481 52.7
8 Raleigh-Cary, NC 56.6 $87,311.41 $908 51.6
9 Austin-Round Rock-San Marcos, TX 58.8 $84,366.35 $1,000 49.7
10 Boston-Cambridge-Quincy, MA 57.0 $102,939.98 $1,207 49.5
11 Dallas-Plano-Irving, TX 50.3 $86,579.70 $908 48.9


Sources: Bureau of Labor Statistics, U.S. Census Bereau

Read more at the Austin Business Journal or see NerdWallet for the full report.

Denver REIT ponies up $69M for Austin City View office park  

(4/29/2015 7:00:00 AM)

AUSTIN - The City View office park at 1122 S. Capital of Texas Hwy. has been sold for $68.75 million.

Denver-based Dividend Capital Diversified Property Fund Inc. acquired the four building multi-tenant office park — about 274,000 sf — from Pearlmark Real Estate LLC of Chicago.

The City View portfolio was built between 1985 and 1998. Currently, it is 99 percent leased to 22 tenants.

Earlier this year, Dividend purchased Rialto I and Rialto II at 7500 Rialto Blvd. for $37.3 million.

On its website, Dividend also shows that it owns the the Austin-Mueller Health Center at 1345 Philomena St., which it purchased in 2008 shortly after the project was completed. That building covers 156,000 sf and is leased to Seton Healthcare Family.

Read more at the Austin Business Journal.

Hays County home values jump 12 percent 

(4/29/2015)

HAYS COUNTY - Home values in Hays County increased more than 12 percent for 2015, mirroring the double-digit increases seen in Travis and Williamson counties where housing demand also remains strong.

Across Hays County, the average residential market value rose to $198,246 from $176,319 last year, a 12.4 percent increase.

The taxable value of homes in the county — market value minus exemptions — increased 12.8 percent, to $193,246 from $171,319 last year.

The cities of Kyle and Buda saw large percentage increases in home values due to strong demand and a limited supply of homes on the market. Taxable home values in Buda soared about 20 percent, to $204,601 from $170,596 last year, while Kyle’s jumped about 17 percent, to $156,536 from $133,879 last year.

The overall preliminary market value for all properties — residential and commercial — rose to $19.56 billion this year, up 14.9 percent from $17.03 billion in 2014, Valle said. Commercial and industrial property increased in value by 15.9 percent, to $1.9 billion from $1.6 billion in 2014, he said.

Apartment properties saw the biggest jump in value, rising 31 percent to $1.3 billion from $995 million last year.

Below are the average taxable home values in the local school districts and Hays County.

HaysTaxable Values By School District
  Avg. Taxable
Home Value
2015* 2014
Hays CISD $150,012 $126,615
San Marcos CISD $133,567 $121,747
Dripping Springs ISD $309,336 $278,178
Wimberley ISD $211,240 $194,685
City of San Marcos $142,680 $129,277
City of Kyle $156,536 $133,879
City of Buda $204,601 $170,596
Hays County $193,246 $171,319


*Values for 2015 are preliminary.

Source: Hays Central Appraisal District

Read more at the Austin American-Statesman.

Home values jump 11 percent in Travis County 

(4/29/2015)

TRAVIS COUNTY - Home values in Travis County jumped by an average of 11 percent for 2015.

According to the Travis Central Appraisal District, the average market value for homes with a homestead exemption rose to $355,312 from $320,032 last year.

The average taxable residential value — the market value of homes minus exemptions — rose about 9 percent, to $262,462 from $240,139 last year.

In 2014, the market and taxable home values in Travis County had risen 12.6 percent and 8 percent, respectively.

On the commercial side, values increased by 35 percent, propelled by more than $2 billion in new construction along with rising rents and occupancies in the region’s robust apartment and office markets.

Travis Taxable Values By School District
  Avg. Taxable
Home Value
2015* 2014
Austin ISD $307,194   $278,271
Del Valle ISD $96,396  $87,509
Eanes ISD  $790,113 $725,298
Elgin ISD $109,868 $99,143
Lago Vista ISD $334,020  $311,093
Lake Travis ISD $334,020  $311,093
Leander ISD $413,223  $379,977
Manor ISD $131,847 $119,694
Marble Falls ISD $394,309  $389,740
Pflugerville ISD $170,733  $154,773
Round Rock ISD $313,026  $284,542
Travis County $262,462 $240,139

*Values for 2015 are preliminary.

Source: Travis Central Appraisal District

Read more at the Austin American-Statesman. For a map of market value by appraisal area in Travis County, click here.

Cedar Park: $43M Tuckaway affordable housing project 

(4/28/2015)

CEDAR PARK - A new apartment complex with up to 256 units on Bagdad Rd. could help fill a price gap in Cedar Park’s affordable housing.

Indiana-based Pedcor Investments has proposed the project, deemed Tuckaway Apartments, on 17 acres at the northeast corner of Bagdad Rd. and Brashear Lane.

Construction on Cedar Grove could start in soon. The company plans to spend $43 million on the project and hopes to finance the project partly through the sale of tax credits obtained from the Texas Department of Housing and Community Affairs.

Tuckaway Apartments units are intended for households that earn between $31,000 and $53,000 annually. Average monthly rent will be $914, a price point that is underrepresented in the city.

The project will also include all-masonry exteriors, a swimming pool and splash pad, a gym and business center.

Read more at Community Impact Newspaper.

Austin's Highland Mall soon to be college campus 

(4/28/2015)

AUSTIN - RedLeaf Properties has partnered with Austin Community College to develop 35 acres surrounding Highland Mall into a mixed-use development.

RedLeaf intends to create mixed-use development around the new community college campus that will appeal to students as well as nearby residents, according to Matt Whelan, the company’s principal.

Construction begins fall 2015 on the first project, a residential mid-rise that will feature ground-floor retail space. The building should be complete by early to mid-2017.

The entire multi-building development will be completed during the next ten years and will include up to 1,200 residential units, 200 hotel rooms, 800,000 sf of office space and 150,000 sf of retailers.

The goal is to attract a large employer to one of the development’s office spaces, Whelan said.

The company is likely to complement the community college and another potential neighbor, Rackspace, an information technology company tentatively slated to relocate to the former Dillard’s space as part of a public-private partnership with ACC.

Read more at Community Impact Newspaper.

Austin Rollingwood Center 215,000 SF opening in July 

(4/27/2015 9:45:00 AM)

AUSTIN - First tenants will move into the 215,000-sf Phase I of the Rollingwood Center in July or August 2015.

Phase I of the center includes within five stories in Building 1 and three stories in Building 2.

An underground tunnel will connect Building 1 with a sunken garage containing 790 parking spaces.

The project is designed in two phases, with the center’s two buildings and garage built in the first phase and a third office building and second garage planned for the second phase.

Tenants include Independence Title, Heritage Title Co., law firm Barnes Lipscomb Stewart and Ott and LatinWorks, which will take 50,000 sf out of Building 2’s available 66,000 sf.

The center is on target to complete the project within its $50 million budget.

Read more at Community Impact Newspaper.

Preliminary: Williamson County home values jump 12.7 percent 

(4/24/2015)

WILLAMSON COUNTY - Preliminary figures for 2015 show home values increasing 12.7 percent in Williamson County — a hot market where housing demand continues to outstrip supply and push prices higher, according to Williamson County Chief Appraiser Alvin Lankford.

The average market value of Williamson County homes increased to $241,860 from $214,682 last year, according to preliminary figures from the Williamson County Appraisal District.

The taxable value of homes — the market value minus exemptions — jumped 9.7 percent on average, to $229,687 from $209,402.

Last year, the average market value and average taxable value rose 10.6 percent and 11.5 percent, respectively.

“The same market factors that increased values before are still happening this year,” Lankford said.

“Williamson County is one of the fastest-growing areas within Texas and the demand for housing has outpaced supply for the last three years.”

Williamson County Market Values
  Average Market
Value
Average Taxable
Value
2015 2014 Chg. 2015 2014 Chg.
City of Cedar Park* $260,437 $233,030 11.76% $250,285 $225,889 10.80%
City of Leander* $209,823 $184,114 13.96% $201,040 $178,041 12.92%
City of Round Rock* $226,177 $205,959 9.82% $217,815 $202,163 7.74%
City of Georgetown $251,986 $227,025 10.99% $232,436 $221,723 4.83%
City of Hutto $164,745 $150,670 9.34% $159,982 $147,122 8.74%
City of Taylor $112,659 $100,300 12.32% $103,726 $97,800 6.05%
Willamson County $241,860 $214,682 12.66% $229,687 $209,402 9.69%


*Williamson County portion only

Read more at the Austin American-Statesman.

Austin home prices, sales volume hit all-time highs 

(4/23/2015 9:00:00 AM)

AUSTIN - Central Texas home prices and sales volume hit an all-time high in March 2015, according to the Austin Board of Realtors.

“The Austin-area housing market is the least affordable it has ever been,” said ABOR President Barb Cooper.

FitchRatings recently raised the ire of local economists and real estate professionals by reporting that Austin homes were collectively overvalued by 20 percent — the highest in the country.

ABOR’s new statistics peg the median price for Austin-area single-family homes as increasing 10 percent year-over-year to $255,000 in March 2015. The average price increased 13 percent to $334,758 during the same time.

This is the highest Austin-area home prices have ever been, and only three in ten single-family homes sold locally in March were priced less than $200,000.

Home sales increased 13 percent year-over-year to 2,440 home sales in March, a new volume record for that month.

In March, more than half of the homes sold in the Austin area were outside of Austin’s city limits.

Most out-of-Austin sales occurred in Round Rock, Pflugerville, Georgetown, Cedar Park, Leander, Kyle and Buda.

Austin’s monthly housing inventory was statistically unchanged from March 2014 at 2.2 months, a figure still well below the 6.5-month level the Real Estate Center at Texas A&M University estimates as a balanced housing market.

Read more at the Austin Business Journal.

See Austin NewsTalk, Austin Market Research

120,000-SF Mesa Oaks grow in SW Austin 

(4/23/2015 7:30:00 AM)

AUSTIN - Mesa Oaks, a new 120,000-sf office development in the southwest submarket, is taking off.

Located at 5920 William Cannon Drive, the Class A building offers lease or purchase for office, professional and medical-user opportunities.

The first of six buildings within the project recently delivered totaling 38,000 sf.

The first phase will welcome tenants such as Texas Association of School Business Officials, S. Kanetzky Engineering and the Texas Association for the Gifted and Talented.

The Texas Association of School Business Officials will relocate from a building off South Congress to occupy the entire 12,000-sf top floor of Building 1.

The project boasts unique environmental features including solar panels throughout the site, along with energy-efficient HVAC systems. In addition, the development is within a park-like setting, with trees every 20 feet along the walking paths between the buildings.

Read more at GlobeSt.com.

NerdWallet: Austin No. 13 for 'green' U.S. cities 

(4/23/2015)

AUSTIN - San Francisco-based NerdWallet Inc. has released a list of the U.S.’ most environmentally friendly cities, with Austin coming in at No. 13.

Based on nine factors such as walking commuters, Austin generated a score of 53.5 compared with the No. 1 city, Honolulu, Hawaii, which scored 83.6. No. 2, Washington, D.C., scored 64.3, and No. 3, Arlington, Virginia, scored 62.8.

Irving, the only other Texas city in the top 25, generated an overall score of 51.2 and a ranking of No. 20.

Ten percent of Austin’s commuters carpool and just 3 percent of them walk to work versus Honolulu carpoolers of 13 percent and walking commuters of 9 percent, according to the report.

The number of Austin residential buildings with solar heating per 10,000 was listed as 2.8 compared with 101.9 in Honolulu.

Read more at the Austin Business Journal or see the full ranking at NerdWallet.

NewsTalk Austin, Market Research Austin

Rural doctors' delight! Hat Trick MOB to Dripping Springs 

(4/22/2015 9:45:00 AM)

DRIPPING SPRINGS - Hat Trick Development of Austin has broken ground on a 37,000-sf medical office building that gives tenant physicians and other service providers a share of equity in the project.

Construction on the 4.5-acre site began in mid-April and is expected to be completed in spring 2016.

The Medical Towers at Sawyer Ranch project is located at US 290 and Sawyer Ranch Rd., across from the Polo Tennis and Fitness Club, and will be anchored by Lewis Family Medicine & Urgent Care.

Other tenants will include Dripping Springs Eye Associates, Kethley Physical Therapy, Solutions Pharmacy, Austin Dermatology Associates & Aesthetics and an imaging center and cardiac catheter lab.

“Our analysis concluded this is another underserved market, medically-speaking, where residents drive to Austin for a considerable portion of their health care needs,” said Eric Perardi, co-founder of Hat Trick Development.

Hat Trick has been an active developer in the medical office sector, recently completing Mueller Plaza Medical in Austin, Cypress Creek Medical Plaza in Cedar Park and Medical Towers at Riverplace in Northwest Austin. 

Read more at the Austin Business Journal.

Sam's Club opens 134,000-SF store in Austin 

(4/22/2015 7:00:00 AM)

AUSTIN - Sam’s Club opened its fifth location at 10901 Lakeline Mall Dr. The company has three other sites in Austin and one in Round Rock.

The 134,464-sf store has 175 employees — 25 transferees from other stores and 150 new hires from Austin, Cedar Park, Leander and Round Rock, according to Store Manager Maurice May.

Sam's Club, a division of Walmart, features groceries, clothing, electronic goods, furniture, books and health items, with many in bulk, as well as medical care options to its member businesses and individuals.

As part of its grand opening, Sam's Club made donations to several nonprofit organizations such as the Cedar Park Public Library, Meals on Wheels of Williamson Burnet County and Texas Humane Heroes.

Read more at Community Impact Newspaper.

Building flurry along Hwy. 71 from Hwy. 290 to Bee Cave 

(4/22/2015)

BEE CAVE - The Hwy. 71 corridor from Hwy. 290 to the City of Bee Cave is home to several projects that are under construction or almost finished.

Developer Oden Hughes is scheduled to finish work on the 240-unit Landmark Conservancy apartments in April, according to Managing Director Mac McElwrath.

Local church LifeAustin expects to finish work on its outdoor amphitheater by mid-May and open the worship center this summer, according to Business Pastor John Capezzuti.

The amphitheater will primarily serve as an outdoor worship center, he said. However, the church hopes to host occasional charitable and civic events there as well. The church considers the amphitheater “integral to our outreach in the community,” Capezzuti said.

Nearby, developer Bill Schultz is working on Covered Bridge Village, a mixed-use project that will include retail, office and restaurant uses, he said. Construction on the three commercial buildings will begin in June or July.

The Texas Department of Transportation is working on a $15.9 million project to add turn lanes and shoulders to Hwy. 71 from Thomas Springs Rd. to Covered Bridge Dr.

Read more at Community Impact Newspaper.

Blame it on the rain! Austin area home building pace slows 

(4/20/2015 8:00:00 AM)

AUSTIN - Central Texas home building is off to a slow start in 2015, according to Residential Strategies Inc.

The 2,717 housing starts marked a 12.3 percent decline from the 3,099 homes that builders started in first quarter 2014. The annual starts rate through March was 11,967, slightly lower than the 12,349 annual pace posted in 2014.

Residential Strategies cited a higher-than-average amount of rain, particularly in January, for the lower-than-anticipated number of housing starts.

The Austin area continues to have healthy job growth, the main driver for new home demand. The Texas Workforce Commission said the region added 22,800 new jobs during the 12 months ended in March, a 2.5 percent growth rate.

New home closings increased 13.4 percent in 1Q 2015, with buyers moving into 2,542 new homes. The pace of closings continues to push higher and now stands at 10,330 for the annual total through March.

New home inventory rose 28 percent over the last year for a total of 7,454 homes at the end of 1Q 2015, a supply of 8.7 months.

However, most of that inventory — 4,914 houses — is in the “under construction” category. Builders are continuing to increase their model homes as new communities open across Central Texas.

Read more at the Austin American-Statesman.

Austin NewsTalk, Austin Market Research

Austin apartments stay hot, but landlords in control 

(4/17/2015 8:00:00 AM)

AUSTIN - The Central Texas apartment market’s hot streak isn’t over yet. The market saw about 4,400 net new units leased during first quarter 2015, bumping the annual total through March to 12,940 units, according to MPF Research.

Only three metro areas — Houston, Miami and Boston — saw stronger first-quarter demand, while Austin’s annual total was the fifth-highest level nationwide.

The local occupancy rate is 95 percent, down from the 95.1 percent rate in early 2014. With all the new supply, rent growth — while still healthy — is slowing a bit. Overall, rents are now averaging $1,088 a month, and for the new properties just coming to market, $1,433 a month.

On average, rents rose 3.3 percent during the 12 months that ended in March, offering renters some relief from the annual hikes of 4.5 percent a year ago and 6 percent to 7 percent back in 2011-2012, according to MPF Vice President Greg Willett.

Although some Austin complexes are offering special deals — generally about one month’s free rent in some areas where lots of new luxury units are opening, like along South Lamar Blvd. — landlords remain in the driver’s seat, leasing agents say.

Austin’s strong first quarter mirrors the national picture, where demand is continuing to rise and the rapid leasing pace is pushing up occupancies and rents. Apartment demand was up 55 percent in 1Q 2015 year-over-year.

Read more at the Austin American-Statesman.

Austin apartment NewsTalk; Austin Market Research

Austin's 249-unit Capitol Village sold to West Coast buyer 

(4/17/2015)

AUSTIN - The 249-unit Capitol Village Apartments at 6855 E. Hwy. 290 has been sold.

Built in 1969, the community offers studio units and one-, two- and three-bedroom layouts. Units range from 400 sf to 1,380 sf and rent varies from $599 to $1,299.

Capitol Village is 96 percent occupied and offers community amenities such as a swimming pool, clubhouse, playground fitness center and business center.

A San Francisco-based private investor purchased the property from Los Angeles-based InterGroup Corp. Berkadia handled the sale.

Read more at GlobeSt.com.

Austin office market stays hot in 1Q 2015 

(4/16/2015)

AUSTIN - Driven by the city’s thriving tech sector, Austin’s office market remained strong in first quarter 2015, with occupancy rates and average rents rise rising compared to 1Q 2014, according to Cushman & Wakefield | Oxford Commercial.

The report shows that the occupancy rate for the highest-quality, or Class A, office space rose to 91 percent, up from 90 percent a year ago.

The average rent for Class A space averaged $35.60 per sf, up from $32.70 in 1Q 2014.

Even with more than 3.5 million sf of office space currently under construction, “there aren’t enough new construction projects underway as the majority of office space coming online this year has been preleased,” said Jason Steinberg with Equitable Commercial Realty in Austin.

Austin’s tech sector is boosting demand for top-tier office space. With a 25.6 percent growth in tech talent from 2010-2013, CBRE ranked Austin ninth among 50 markets for attracting and growing tech talent.

Erin Morales with CBRE in Austin said that downtown Austin has seen “an incredible transformation of culture in the last decade,” primarily due to tech companies that want to locate downtown because it helps them recruit and retain top talent.

Read more at the Austin American-Statesman.

ABoR: Austin area home sales March 2015 

(4/15/2015 9:00:00 AM)

AUSTIN - The Austin Board of Realtors has released home sales facts for March 2015. Below is a sample of the entire report released April 10, 2015.

• The median price of existing single-family homes increased to $255,000, up 3.2 percent from February 2015.
• Existing single-family home sales increased 30.9 percent from February 2015 with 1,999 sold units.
• Condos increased in price to $219,950, up 14.4 percent from February 2015.
• Existing condo sales increased 20.6 percent in March 2015 over February 2015 with 234 sold units.

Austin Region Sales and Price Activity by Units Sold
MLS Wide Median Price
Mar. 2015
Price Chg.
Mar. 2014
Units Sold
Mar. 2015 
Sale Chg.
Mar. 2014
ACTRIS* (single-family) $255,000 10.9% 1,999 8.3%
ACTRIS (condo) $219,950 3.9% 234 -1.7%
Region Cities**        
Austin $315,000 5.7% 787 5.1%
Round Rock $240,000 15.3% 201 -1.5%
Pflugerville $204,800 19.8% 131 37.9%
Georgetown $261,750 -3.1% 130 9.2%
Cedar Park $256,739 1.2% 112 3.7%
Leander $210,000 9.7% 103 22.6%
Kyle $185,000 18.8% 53 1.9%
Buda $228,968 9.6% 50 35.1%


*Austin/Central Texas Realty Information Service
**Data include single-family only and represent select region cities that sold 50 or more units during March 2014.

See the full report from the Austin Board of Realtors.

Austin ALN apartment report March 2015 

(4/14/2015 8:40:00 AM)

AUSTIN - In the apartment market, Austin stumbled a bit in 2014, yet, like San Antonio, it looks like Austin also had a good winter.

The market absorbed almost 1,400 net rented units in the last three months. Consequently, average occupancy dropped a modest 0.5 percent to 90.2 percent.

Rent growth, though, has slowed considerably in this market. Effective rents rose to $1,098 per unit, a mere 0.7 percent growth from November 2014. Compared to a year ago, however, effective rents were up 7.3 percent.

About half of the 23 submarkets saw average occupancy drop since November yet that was due more to the introduction of new units than loss of rented units.

About a quarter of the submarkets saw rents drop in the last 90 days though all of the submarkets had rent increases from a year ago.

The chart below represents the top seven submarkets ranked by occupancy.

Austin Quarterly Multifamily Market
  Occupancy   Effective Rent
Submarket* Nov-14 Feb-15 Chg. Abs.** Nov-14 Feb-15 Chg.
Elgin-Bastrop 97.5% 96.8% -0.7% -3 $830 $931 12.1%
North Central 95.8% 96.2% 0.3% 18 $888 $913 2.8%
Rundberg-N. Lamar-
35 North
95.2% 95.2% 0.0% 6 $820 $832 1.4%
San Marcos-Buda-
Lockhart
94.6% 94.9% 0.2% 11 $916 $940 2.6%
620-Anderson Mill-2222 95.3% 94.8% -0.5% -29 $989 $993 0.3%
East Parmer-Dessau-
Tech Ridge
95.2% 94.5% -0.8% -36 $960 $968 0.8%
West Parmer-North Mopac-
McNeil Rd
94.5% 94.3% -0.2% -26 $1,054 $1,052 -0.1%
Totals*** 90.6% 90.2% -0.5% 1,398 $1,090 $1,098 0.7%

*Selected submarkets by occupancy
**Absorption
***Totals include data from all submarkets.

See the entire U.S. plus Texas apartment report at ALN March 2015.

Read more at ALN Market News.

Austin Chamber 2014 industrial indicators updated: CoStar 

(4/13/2015)

AUSTIN - The Austin Chamber of Commerce industrial data for 2006–2014 was updated April 7, 2015.

Data include all classes and all sizes, and both multi-tenant and single-tenant buildings, including owner-occupied buildings.

Austin MSA Industrial Market Indicators
Year* Existing Inventory Vacancy Net
Absorption
Under Construction
Inventory
Quoted Rates
Bldgs. Total RBA Direct SF Total SF Vacancy Bldgs. Total RBA** Per NNN***
2012 3,788 93,460,497 8,132,405 8,361,754 8.9% 2,041,066 6 33,735 $6.50/NNN
2013 3,800 93,702,252 6,923,356 7,117,749 7.6% 1,485,760 17 533,704 $7.27/NNN
2014 3,822 94,411,483 7,131,972 7,653,198 8.1% 173,782 19 1,007,644 $8.35/NNN


*Annual & YTD figures are as of end of the period except Net Absorption and Deliveries.
**RBA=Rentable building area
***NNN=Triple Net Lease‏

Source: Austin Chamber and CoStar Group

Here's other Austin Industrial Reports.

For stats in a basket, see The Austin Chamber.

Austin Aussies' hiring 120 more HipChat software workers  

(4/13/2015)

AUSTIN - Australian software maker Atlassian Pty. Ltd. is tripling its office space in Austin and plans to hire 120 technology workers this year.

The company currently employs 150 workers at a 25,000-sf office on Congress Ave. The Colorado Tower space will be more than 75,000 sf and is projected to house more than 270 workers by the end of the year.

The company is relocating from other downtown space to the Colorado Tower where it is taking two floors with plans to occupy a third floor after it completes a hiring spree.

Most of the new staff positions will be software engineers and technical support related to its HipChat software, a team messaging platform designed to enable co-workers to communicate in real time..

Atlassian, which was founded in 2002 by Scott Farquhar and Mike Cannon-Brookes, employs 1,300 workers in eight locations. Its flagship product, called JIRA, manages workflow for teams of workers.

Read more at the Austin Business Journal.

Sold: 67,000-SF Pflugerville West Shopping Center 

(4/9/2015)

PFLUGERVILLE - Los Angeles-based portfolio lender Thorofare Capital has funded a $7.7 million floating rate commercial mortgage for the acquisition of Pflugerville West Shopping Center, a 67,150-sf retail center at 15424 FM 1825.

The sponsor, a Virginia-based private investor, acquired the property in a marketed transaction for $131 per sf, representing a going-in cap rate of 9.5 percent, according to Thorofare’s executive vice president of origination, Felix Gutnikov, who structured and negotiated the financing. 

Pflugerville West Shopping Center, which was originally constructed in 1998 and expanded in 2006, is currently shadow-anchored by Plano-based Cinemark.

The property was 89 percent occupied by nine tenants at the time of closing.

The center is anchored by Ashley Furniture Homestore, which occupies approximately 58 percent of the net rentable square footage.

Source: GlobeSt.com

Shark Tank full of Austin lemonade 

(4/9/2015)

AUSTIN - BeeSweet Lemonade, an Austin-based startup run in part by ten-year-old Mikaila Ulmer, is the latest local company to appear on ABC’s “Shark Tank” business competition series.

The lemonade, which is made with flaxseed and local honey, is currently available at Whole Foods Market Inc. stores throughout the southwestern U.S., with 25,000 bottles sold last year.

Ulmer started the company with her family when she was four from a roadside lemonade stand.

Daymond John agreed to chip in $60,000 for a 25-percent stake in the business, contingent on him working out a distribution deal for the lemonade with some East Coast convenience stores.

“It was a fun experience and I got to meet these people that I never imagined I’d have the chance to,” Ulmer said. “When I was younger I thought [selling lemonade] would be something I’d do once and then drop it, but I didn’t realize how much fun it is to be an entrepreneur.”

BeeSweet has hired Austin ad agency Sanders/Wingo to handle its advertising program.

Read more at the Austin Business Journal.

Austin: CyrusOne takes step two in 172,000-SF powered shell 

(4/8/2015)

AUSTIN - CyrusOne recently announced the next step in its Texas expansion: the purchase of an additional powered shell in Austin’s Met Center.

The Austin III data center will be CyrusOne’s largest facility in Austin so far, encompassing 172,000 total sf of shell and 120,000 colocation sf.

Austin III will feature up to 12 megawatts of power and more than 25,000 sf of Class A office space.

The facility will be located seven minutes from Austin-Bergstrom International Airport and offer access to nearby amenities, including hotels and restaurants. The data center uses a modular design approach that enables CyrusOne to commission clients in about 12 to 16 weeks.

The first phase of the construction consists of 60,000 sf of colocation and six megawatts of critical load.

Like its San Antonio II data center, Austin III will be part of CyrusOne’s National Internet Exchange (IX), linking it with other CyrusOne data centers nationwide.

CyrusOne National IX creates a data center platform that links more than a dozen of CyrusOne’s facilities and third-party entities in numerous metropolitan markets.

Read more at Multi-Housing News.

What's in your neighborhood? Austin's median rental rates 

(4/7/2015 7:00:00 AM)

AUSTIN - Zumper, a new San Francisco startup, released its first map of rental rates for apartments throughout the Austin area.

Though Austin’s rental rates have been rising for years, overall the market is fairly tame.

Austin ranks No. 21 for monthly median apartment lease rates at $1,030 for a one-bedroom unit. A two-bedroom unit has a median lease rate of $1,380 per month.

The nation’s largest metro markets continue to be very expensive but it might be surprising to note that Minneapolis, Minnesota; Portland, Oregon; and Baltimore, Maryland are all more expensive than Austin.

In Texas, Dallas and Houston also are more expensive than Austin.

Austin Neighborhoods
Median Monthly Rent*
Rank Neighborhood Median
Rent
1 Downtown Austin $1,913
2 East Cesar Chavez $1,589
3 Central East Austin $1,575
4 Old West Austin $1,544
5 Zilker $1,500
6 Holly $1,425
7 RMMA $1,377
8 Triangle State $1,344
9 Rosedale $1,320


*Median monthly rent figures include one-bedroom apartments.

Need a visual? See the map here!

Read more at the Austin Business Journal.

Language recognition Interactions adding 400 Austin jobs 

(4/6/2015)

AUSTIN - Interactions LLC plans to add 400 jobs by mid-May to its technology center in Austin.

The Franklin, Massachusetts-based company, which is a developer and provider of speech and natural language technology to create virtual personal assistants for professionals and entrepreneurs, is adding to its entry-level intent analyst ranks.

Those jobs come on top of the 1,000 positions it announced last summer, though some of those positions ended up going to some of the company’s other technology centers.

The company's automated customer service technology is augmented by intent analysts, who help facilitate user interactions with the automated system. Analysts might listen to clips of a customer responding to an automated system, interpreting and then entering that response into the system.

Interactions’ Austin office is located in the same office building near E. Rundberg Lane and I-35 that Rackspace Inc. plans to vacate when it shifts operations to the redeveloping Highland Mall.

Read more at the Austin Business Journal.

Bluerock covers Austin's Fox Hill for $38M 

(4/2/2015 9:00:00 AM)

AUSTIN - The 288-unit Fox Hill Apartments at 8800 Hwy. 290 has been sold for $38.2 million.

Built in 2010, Fox Hill is a Class A multifamily community featuring one-, two- and three-bedroom unit layouts, averaging 1,066 sf.

The community sits on 44 acres and features amenities including a resort style pool, fitness center, children's playground, sand volleyball court, communal vegetable and herb garden, hiking, biking and walking trails, a dog-park, an outdoor BBQ/fire pit, and business and media centers.

Bluerock Residential Growth REIT acquired Fox Hill, and believes it can achieve a stabilized cap rate of 6.25 percent by bringing existing rents, which it estimates to be 15 percent below market.

The acquisition was further capitalized with a senior mortgage loan from Walker & Dunlop in the amount of $26.7 million. The loan has a term of seven years, will bear interest at a fixed rate of 3.6 percent, and will be interest-only for the first 48 months.

Fox Hill is the third multifamily investment in the Austin market by the Company's sponsor, Bluerock Real Estate, since 2010. Other investments included Bluerock's Archstone Tech Ridge and the Meadows Apartments.

Read more at PRNewswire.

Austin's food bank(ing) on new 135,000-SF facility 

(4/2/2015)

AUSTIN - The Capitol Area Food Bank has broken ground on its new $20 million facility at the corner of Metropolis Dr. and Burleson Rd. in southeast Austin.

The 135,000-sf facility will help the nonprofit meet growing demand for its services as Austin’s population continues to grow, with the ability to distribute 60 million pounds of food per year when it is complete.

HEB, the Moody Foundation and Howard and Mary Yancy were among the businesses that donated $1 million last year to kick off the capital campaign for the project.

The new facility will double the size of the nonprofit’s current facility, have five times the refrigeration capacity, 15 loading docks, a commercial kitchen and a half-acre teaching garden where families will grow fresh fruits and vegetables.

Read more at the Austin Business Journal.

Former MLB star on base with 85,000-SF complex in Bee Cave 

(4/2/2015)

BEE CAVE - Hill Country Indoor received approval March 24 from Bee Cave City Council to begin developing its indoor sports facility — Hill Country Indoor Sports & Rec. Complex — at 4317 Skaggs Dr.

Hill Country Indoor’s 85,000-sf building and the land it will occupy are funded solely by the development group, TCHMALL LLC.

One of the projects founder is former Major League baseball all-star Jeff Kent. He anticipates breaking ground on the project by late spring, with a 16-month build schedule.

Read more at Community Impact Newspaper.

Calif. Freebirds fly to new HQ coop in Austin 

(4/1/2015 9:30:00 AM)

AUSTIN - Freebirds World Burrito, the fast food chain that once called College Station home before being sold to a California-based firm, has returned to its roots in Texas.

The chain has moved its corporate headquarters from Emeryville, Calif., to the Great Hills Corporate Center in Northwest Austin, where it will employ 29 workers that includes its executive team, digital designers and marketing and human resources workers, among others.

The Austin corporate office staff will include some new hires and relocation, and another wave of hiring could be on the way, according to COO Bobby Shaw.

Freebirds said the move was a “natural fit” as the company has more than half of its locations — 67 — in Texas and already had support staff operating in Central Texas. Overall, the chain has more than 100 restaurants and 2,000 employees.

The first Freebirds restaurant opened in Santa Barbara, Calif., in 1987, founded by Mark Orfalea and Pierre Dube, who were roommates at the University of California-Santa Barbara. They said they opened the shop to offer college students more options for healthy meals that included black beans, sautéed fresh vegetables and grilled chicken and beef.

However, the Freebirds chain was really born in College Station. Dube bought the rights to expand the chain, and headquartered the brand in College Station.

The chain now operates in seven U.S. states: Texas, California, Kansas, Louisiana, Missouri, Oklahoma and Utah.

Read more at the Austin American-Statesman.

Austin's Stonegate Apartments part of new Castle buy 

(3/31/2015)

AUSTIN - Stonegate Apartments, a 452-unit Class A property at 10505 S. I-35, has been sold.

Constructed in 2003 and located off I-35, Stonegate consists of 24 two- and three-story buildings with units in a variety of modern floor plans, many with vaulted 13-foot ceilings and balconies or patios.

Stonegate offers one- and two-bedroom units ranging from 556 sf to 1,434 sf. Rent varies from $810 to $1,545 per month, according to apartmentguide.com.

The community includes a clubhouse that includes the leasing office, business center, fitness center and recreation room.

Castle Lanterra Properties purchased Stonegate with more than $1 million earmarked for upgrades including new lighting and plumbing fixtures, appliances and flooring.

Read more at GlobeSt.com.

Lakeway Resort and Spa completes $7M renovation 

(3/30/2015)

LAKEWAY - The Lakeway Resort and Spa has reached the end of a complex $7 million renovation that was more than 18 months in the making.

The process was completed in phases to minimize disruption and to enhance revenue. “Virtually every aspect of the resort has been upgraded, from the roof to the flooring and everything in between,” said Murray Dow II, president of Dow Hotel Co., Lakeway’s owner and operator.

“This is the seventh major renovation we have completed in the past 24 months, all of which have been on time and budget,” Dow added.

Public spaces were refreshed to reflect a contemporary style that combines natural and traditional Texas themes; elements of guest rooms were thoroughly revitalized, from carpeting to furniture. Dow upgraded food and beverage venues and added a new restaurant, Masterson’s Steakhouse.

Meeting space has been redesigned to benefit from the lake and Hill Country views. The 17 meeting rooms, including four ballrooms that provide 24,000 sf for functions, can accommodate up to 350 guests.

The 4,000-sf Kid Zone play area has been highly colored and retooled. Two heated pools and one unheated pool can be used year round; the outdoor area has been enriched with new surfaces and water features, as well as a swim-up pool bar. Internet speed has been enhanced and rooms have been equipped with large high-definition TVs.

Read more at Multi-Housing News.

Planting time! Home Depot hiring 600 in Austin 

(3/26/2015)

AUSTIN - The Home Depot plans to hire more than 600 people in the Austin area this spring to meet demand during its busy selling season.

Available jobs include cashier positions as well as roles in parking lot maintenance and the garden center. The retailer has more than a dozen stores in the Austin area, including Round Rock and Hutto locations.

Applications are available online.

Read more at Community Impact Newspaper.

Austin: Spring sale of 360-unit Martha's Vineyard 

(3/26/2015)

AUSTIN - Martha’s Vineyard, a 360-unit apartment community at 7920 San Felipe Blvd., has been sold. Occupancy was 95 percent at the time of sale.

Constructed in 1986, Martha’s Vineyard comprises one- and two-bedroom units ranging from 432 sf to 1,125 sf. Rent ranges from $644 to $1,214.

An investment managed by Pinnacle sold the property to a pension fund advisor.

Read more at the GlobeSt.com and Austin Business Journal.

Census: Austin fastest-growing Texas metro 

(3/26/2015)

AUSTIN - The State Capital was the third-fastest growing metro area in the past year, according to data from the U.S. Census Bureau.

Austin’s population expanded by 3 percent between July 2013 and July 2014, with a total population of 1,943,299, an increase of about 57,496 new residents.

In 2010, the Census pegged the region's population at 1,716,303, giving the area a 13.2 percent growth rate over the previous five years.

The Austin area ranked just behind year-to-year population growth in The Villages, Florida, metro area that grew by 5.4 percent in the past year, and Myrtle Beach, North Carolina, which grew by 3.2 percent.

The Census Bureau's announcement of the new estimates paid special attention to Texas' booming growth overall, with several Lone Star State metro areas and counties among the fastest-growing in their respective categories.

Hays County was the fifth-fastest growing county in the nation over the past year, with its population expanding by 4.8 percent.

Meanwhile, Harris County saw the largest numerical increase in residents in the entire country over the past year, with an estimated 89,000 new residents. Bexar County was the sixth-fastest growing county in the nation, with 34,000 new residents in the past year.

Odessa was the fourth-fastest growing metro area in the nation with its population expanding by 2.9 percent in the past year.

Read more at the Austin Business Journal or check out the data at the U.S. Census Bureau.

Austin area getting ready for 'Silver Tsunami' 

(3/25/2015)

AUSTIN - Austin has a reputation as a young city, but statistics about the city’s aging population have caught civic leaders’ attention.

Recent data show the Austin-Round Rock-San Marcos MSA hosts the fastest-growing population in the country of residents ages 55–64. Residents age 65 and older made up 8 percent of the MSA’s population in 2010 but are predicted to make up 20 percent of the population by 2040.

Local forecasters have dubbed this demographic shift the “silver tsunami,” and the area’s public and private sectors have been preparing to address issues related to an aging population, such as health, housing and transportation.

Meanwhile, as resources spring up to serve them, some of today’s older residents are concerned about affordability and transportation.

Senior housing construction has grown to meet demand, with properties such as Elan Southpark Meadows and Ledgestone Senior Living.

Read more at Community Impact Newspaper.

City of Austin multifamily report 4Q 2014 

(3/24/2015 8:00:00 AM)

AUSTIN - Multifamily market watchers in Austin looking for a top to the current kaboom of incoming product will have to wait yet another quarter as almost 3,000 units were submitted in 22 new multifamily projects to the City’s Department of Planning and Development Review.

According to City Demographer Ryan Robinson fourth quarter 2014 also saw the approval of 13 projects that include a total of over 1,600 units — these developments are now entitled to begin construction.

Construction was initiated at ten sites totaling almost 1,800 units while another four projects reached completion delivering nearly 600 units to what is widely considered to be a landlord’s market.

City of Austin Multifamily Report 4Q 2014*
Project Address Zip Code Units Site
Acres
Presidio Multifamily 13435 Lyndhurst St. 78717 421 14.10
Marbella Multifamily 8001 S I-35 78744 372 29.3
Altis at Lakeline 12700 Ridgeline Blvd. 78613 354 21.99
Marbella Multifamily
Phase II
8001 S I-35 78744 326 37.51
University House
2100 San Antonio
2108 San Antonio St. 78705 188 0.6
Escondera
(Section Four)
8200 Southwest Pkwy. 78735 35 8.76
Enclave 4525 Guadalupe St. 78751 19 0.6
2822 Rio Grande 2822 Rio Grande St. 78705 9 0.30
Glen Allen Apartments 2002 Glen Allen 78704 8 0.45
South 5th Condos 2300 S 5th St. 78704 6 0.4
Total     1,738  

*Sorted by number of units

Source: City of Austin

More details can be found in the City of Austin's spreadsheet.

Redevelopment near Lady Bird Lake advances 

(3/24/2015)

AUSTIN - The redevelopment of a senior living facility in East Austin will move forward after receiving rezoning approval.

The 16-story Rebekah Baines Johnson Center (RBJC), also known as the Austin Geriatric Center, gained approval March 12 for mixed-use zoning, a necessary step before the facility can complete an anticipated redevelopment plan.

The site currently includes 250 units for senior housing along the Lady Bird Lake shore in East Austin. The facility opened in 1972 with the help of President Lyndon B. Johnson.

Redevelopment plans call for constructing two smaller buildings adjacent to the existing RBJC that would house 250 new affordable senior living units and 340 units of mixed-income apartments and condominiums as well as 25,000 sf of commercial space and indoor and outdoor gathering spaces.

Southwest Strategies Group, Momark Development and DMA Development Company LLC have teamed up to redevelop the area, which was zoned for multifamily use until Austin City Council approved new mixed-use zoning during its March 12 meeting.

Read more at Community Impact Newspaper.

Apple falls for Austin 

(3/23/2015 11:30:00 AM)

AUSTIN - Apple Inc. has purchased Riata Crossing North, a four-building office complex in Northwest Austin near the site of its ongoing Austin expansion.

The seller of the 350,000-sf complex on Riata Vista Circle was an entity of San Francisco-based Spear Street Capital.

Apple already occupies the entire complex, which it had been leasing. Riata Crossing is across the street from where Apple is building its new Americas Operations Center, a 1 million-sf project at West Parmer Lane and Delcour Dr. that the company has valued at more than $348 million.

Located on 28.8 acres, Riata Crossing North has an appraised value of $62.5 million, according to Travis Central Appraisal District records.

Cupertino, Calif.-based Apple is in line for incentives totaling more than $34 million from the state, city and county for locating its America Operations Center in Austin.

The company is to receive $8.6 million in tax breaks from the City of Austin, $5 million to $6 million from Travis County and $21 million from the state. Apple has not yet received any incentives money from the city or from Travis County, but did get a $5.25 million incentives payment from the Texas Enterprise Fund, according to state records.

The incentives were approved in 2012, contingent on the technology giant creating more than 3,600 new full-time jobs in Austin, retaining 3,100 existing jobs it had at that time, and spending at least $282 million on new buildings and equipment in Austin over a ten-year period.

As of the end of 2013, Apple had 4,091 full-time employees in Austin, excluding contract workers, according to documents filed with the City of Austin.

Read more at the Austin American-Statesman and the Austin Business Journal.

Visa to hire 500 engineers in Austin by year end 

(3/23/2015 7:50:00 AM)

AUSTIN - Visa Inc. plans to hire 500 engineers in Austin by the end of 2015, according to Chief Marketing Officer Antonio Lucio.

Visa's plans were disclosed in an Ad Age article this week that focused on the company's push to develop a mobile payment system and rebrand itself as a destination for talented tech workers.

According to the report, San Francisco-based Visa's newly launched Checkout digital payment service is one reason the company is in need of engineering talent.

The massive credit card company disclosed in the report that it plans to spend half of its advertising budget on digital channels, up from 46 percent previously.

Visa's current Austin operations are based out of 12301 Research Blvd. in Northwest Austin, near Apple Inc., which is also moving aggressively into the mobile payments world.

Read more at the Austin Business Journal.

Under Armour stretches to new Austin location 

(3/22/2015)

AUSTIN - Under Armour has opened its Connected Fitness digital headquarters in downtown Austin.

The new facility is located within a new commercial development near the restored City of Austin Power Plant.

The office currently employs more than 100 engineers, data scientists, designers and product designers in digital health, fitness and sports.

The building spans more than 35,000 sf and occupies the second floor of the adjacent building to the City of Austin Power Plant.

The five acres surrounding the office are being transformed into a mixed-use urban oasis featuring:

• one and a half acres of public open space and a plaza;
• 30-story residential tower; and
• 33,000 sf of retail space.

This is the first Under Armour office in Texas, and the only office in the brand’s history solely dedicated to digital innovation.

Read more at Texas Real Estate Business.

STEM museum opens 30,000-SF location in Cedar Park 

(3/19/2015)

CEDAR PARK - Nonprofit Texas Museum of Science & Technology (TXMOST) has opened its doors at a 30,000-sf temporary location at 1220 Toro Grande Dr.

TXMOST, formally known as Austin Planetarium, was recently rebranded, and TXMOST Executive Director Torvald Hessel said the new name and the interim Cedar Park location fit with the group’s mission to introduce more Texas residents to science, technology, engineering and math, or STEM.

The museum will debut with the traveling exhibit “Body Worlds,” which displays donors’ human bodies that have been preserved through a process called plastination.

By the end of 2015, TXMOST will add a planetarium to the facility, according to Hessel.

TXMOST still plans to build a permanent museum somewhere in Central Texas. Hessel said Cedar Park as well as Austin are among the cities being considered for the permanent facility.

Read more at Community Impact Newspaper.

ABoR: Austin area home sales Feb. 2015 

(3/16/2015)

AUSTIN - The Austin Board of Realtors has released home sales facts for February 2015. Below is a sample of the entire report released March 10, 2015.

• The median price of existing single-family homes increased to $246,250, up 3.5 percent from January 2015.
• Existing single-family home sales increased 10.7 percent from January 2015 with 1,460 sold units.
• Condos decreased in price to $191,500, down 7.9 percent from January 2015.
• Existing condo sales increased 40.2 percent in February 2015 over January 2015 with 185 sold units.

Austin Region Sales and Price Activity by Units Sold
MLS Wide Median Price
  Feb. 2015
Price Chg.
Feb. 2014
Units Sold
Feb. 2015 
Sale Chg.
Feb. 2014
ACTRIS* (single-family) $246,250 7.1% 1,460 -1.6%
ACTRIS (condo) $191,500 -4.3% 185 1.6%
Region Cities**        
Austin $300,000 3.6% 603 -8.8%
Round Rock $220,000 17.6% 143 10.9%
Georgetown $267,000 16.1% 109 10.1%
Pflugerville $201,660 7.3% 90 26.8%
Leander $188,500 -5.7% 67 -9.5%
Cedar Park $256,000 4.5% 60 -17.8%
Kyle $175,000 15.1% 35 -28.6%
Buda $229,000 14.8% 35 25.0%
Hutto $173,000 15.3% 33 -17.5%


*Austin/Central Texas Realty Information Service
**Data include single-family only and represent select region cities that sold 30 or more units during February 2014.

See the full report from the Austin Board of Realtors.

Google 'search' results in 200,000 SF in downtown Austin 

(3/16/2015)

AUSTIN - Google Austin has signed a lease for over 200,000 sf at the new 29-story Green Water Treatment Plant redevelopment at 500 West 2nd St.

Google currently has three Austin locations, on North Mopac Blvd. (Loop 1), at University Park just north of downtown and its Google Fiber space in what was formerly the Austin Children’s Museum downtown.

The new downtown space will consolidate the employees on North Mopac and University Park, while Google Fiber will remain at the Children’s Museum location three blocks from the new site.

The office tower will have almost 490,000 sf of office space and just over 11,000 sf of restaurant and retail space on the ground floor. It is due to be completed in early 2017.

The tower is currently under construction and marks the second phase of Trammell Crow’s development, which is transforming the former Green Water industrial site into a mix of residences, offices, hotel rooms, shops and restaurants.

Read more at the Austin American-Statesman.

Hays County to grow 464% by 2050  

(3/12/2015 11:00:00 AM)

AUSTIN - Texas is projected to roughly double in size between now and 2050, and Hays County is projected to be the fastest-growing county by percentage in the state, according to county-level data released by the Texas Office of the State Demographer.

According to the numbers, demographers project Hays County will grow by 464 percent by 2050, with more than 666,900 new residents swelling its population to 825,070 over the next 35 years.

Next in terms of percent growth is Collin County, north of Dallas, which demographers project will grow by 386 percent over the next 35 years, with the addition of more than 3 million residents growing its population from 782,341 to 3.8 million.

The Texas counties that encompass the state's largest metropolises are projected to grow at a much slower rate than their bordering suburban counties.

For example, Travis County, in which Austin sits, is projected to grow by only 96.3 percent — far slower than Hays County at 464 percent.

The chart below shows the five fastest growing counties by 2050 ranked by percent change.

Texas Fastest Growing Counties by 2050 (Percent)
County 2010
Population
2050
Population
Change
Hays 157,107 824,070 424.5%
Collin 782,341 3,801,840 386.0%
Fort Bend 585,375 2,738,553 367.8%
Williamson 422,679 1,976,958 367.7%
Denton 662,614 3,031,597 357.5%


Read more at the Houston Business Journal.

Homes springing up in Round Rock, Pflugerville, Hutto 

(3/12/2015)

ROUND ROCK, PFLUGERVILLE, HUTTO - In 2014, 279 new home builds were permitted within Round Rock’s city limits. That is a slight increase from previous years — 229 in 2013 and 257 in 2012.

All those numbers are a far cry from Round Rock’s peak years of 2000-06, when single-family home permits ranged from 1,147 to 1,717 annually.

However, according to city documents, the pace of construction of single-family homes is rising, with an estimated 392 homes to be built in 2015 and 686 homes in 2016.

Pflugerville, on the other hand, reported record-breaking numbers in 2014, with 721 homes built. Its previous peak was in 2013, with 544 homes built. Pflugerville also, unlike Round Rock, includes the number of homes built in its extra territorial jurisdiction.

Hutto reported 429 homes built in 2014 and steady increases from 2013, with 367 homes; 2012, with 226; and 2011, with 189 homes. The city’s peak year on record was 2006 with 781 homes built.

“There is a massive amount of building going on all over,” said Jack Stapleton, board president of the Williamson County Association of Realtors. “The builders are getting as many building permits as they can get their hands on to just keep up with the massive growth.”

Read more at Community Impact Newspaper.

Former Cinemark site to condos, townhomes in Austin 

(3/12/2015)

AUSTIN - Construction plans for a mixed-use project are underway at Capital of Texas Hwy. and Walsh Tarlton Lane.

Centro Development is planning to build 168 condominium homes and 21 townhomes for rent. Another developer anticipates building additional townhome units for sale on the site as well as office buildings.

The rental units will consist of one-, two- and three-bedroom floorplans.

The project is located across from Barton Creek Square Mall at the site of the former Cinemark movie theater.

Developers expect to break ground on the project’s first rental units this summer.

Read more at Community Impact Newspaper.

Round Rock: 238-Unit Avery Centre South 

(3/12/2015)

ROUND ROCK - An apartment complex, dubbed Avery Centre South in city permits, will break ground at 3550 N. A.W. Grimes Blvd. in April with leasing commencing in about a year.

The 238-unit apartment complex is the first multifamily development in Avery Centre, according to Ground Floor Development President Brandon Bolin.

The Avery family owns large tracts of land in northeast Round Rock with long-term plans of turning them into a mixed-use, pedestrian-friendly area, according to statements from the family.

“We’re excited to be a part of [the family’s] overall plans,” Bolin said. “We would like to continue developing out there for years to come as the market demands.”

Bolin said the location near the Texas State University Round Rock, Austin Community College and Texas A&M Health Science Center campuses would make the units attractive to students.

The complex will be a mix of one- and two-bedroom units priced competitively with other apartments in the area.

The facade will primarily be brick and stone with wooden frames to complement the nearby campuses. Amenities at the apartments will include a pool, leasing office and community room.

Read more at Community Impact Newspaper. Here's the map for Austin area higher education schools.

CoStar: Austin industrial deliveries, construction 4Q 2014 

(3/11/2015)

AUSTIN - During fourth quarter 2014, five buildings totaling 138,757 sf were completed in the Austin market area. This compares to two buildings totaling 18,250 sf that were completed in 3Q 2014.

There was 963,344 sf of industrial space under construction at the end of 4Q 2014.

Some of the notable 2014 deliveries include Heritage Crossing – Bldg. 1, a 222,454-sf facility that delivered in 1Q 2014, and Pecan 130 Business Park – Bldg. 1, a 120,000-sf building that delivered in 2Q 2014.

The largest projects underway at the end of 4Q 2014 were FedEx Ground Distribution, a 199,865-sf building with 100 percent of its space preleased, and Expo 11, a 130,002-sf facility.

This trend is compared to U.S. National Industrial deliveries and construction, which saw 240 buildings totaling 41.8 million sf complete construction, with an additional 164.7 million sf of industrial space still under construction at the end of the fourth quarter.

Read more at CoStar Group.

Austin Chamber 2014 retail market indicators: CoStar 

(3/10/2015 7:30:00 AM)

AUSTIN - The Austin Chamber of Commerce retail data for 2006–2014 are now available.

Data include all classes and all sizes, and both multi-tenant and single-tenant buildings, including owner-occupied buildings.

Austin MSA Retail Market Indicators
Year* Existing Inventory Vacancy Net
Absorption
Under Construction
Inventory
Quoted Rates
Bldgs. Total RBA Direct SF Total SF Vacancy Bldgs. Total RBA** Per NNN***
2012 8,414 101,235,827 5,250,883 5,493,432 5.4% 1,458,774 41 593,649 $17.76/NNN
2013 8,466 101,949,124 4,822,918 5,008,871 4.9% 1,197,858 46 776,742 $17.53/NNN
2014 8,510 102,570,764 4,758,869 4,849,808 4.7% 780,703 22 387,769 $17.88/NNN


*Annual & YTD figures are as of end of the period except Net Absorption and Deliveries.
**RBA=Rentable building area    
***NNN=Triple Net Lease‏

Source: Austin Chamber and CoStar Group

One click, does the trick: Austin Chamber 2014 retail market indicators.

Here's other up-to-date Austin Retail Reports.

For stats in a basket, see The Austin Chamber.

Downtown Austin hotel boom bullish on visitors, higher rates 

(3/9/2015 8:30:00 AM)

AUSTIN - New hotels are popping up all over the downtown area, with the building surge on pace to increase the area’s available rooms by about 60 percent.

A 1,012-room JW Marriott that debuted last month boosted downtown’s hotel room total to about 7,500 — and at least ten hotels are under construction that will give downtown more than 3,000 additional rooms.

It’s a dizzying pace for a market that has in the past struggled to land convention business, but hotel operators say they are convinced Austin will be able to handle the influx of hotel rooms.

Austin attracts about 21.5 million visitors annually, according to the Austin Convention and Visitors Bureau, with the travel industry injecting about $6.3 billion into the local economy.

A growing convention business, a healthy economy and Austin’s popularity as a tourist destination are just some of the many reasons hoteliers say they’re bullish on Austin.

In 2014, occupancy at downtown hotels hit 79.3 percent, according to STR, a travel research firm. When occupancy rates rise above 65 percent, developers say it’s typically time to start looking at adding new inventory.

As occupancy rises, so do downtown room rates. The average nightly rate in 2014 was $203.90, according to STR, an 8 percent increase over 2013. Those rates will soar even higher during South by Southwest, which is one of the most lucrative times of year for Austin hotels.

Read more at the Austin American-Statesman.

Also see Source Strategies for Texas cities and county data.

First for take-off near Austin-Bergstrom? Residence Inn 

(3/9/2015)

AUSTIN - A new hotel is the first project to be developed on a 60-acre mixed-use project dubbed Airport Gateway near Austin-Bergstrom International Airport.

Construction will begin in second quarter 2015 on a Residence Inn at 7119 E. Ben White Blvd.

The hotel is the first project to be developed on a 60-acre mixed-use project called Airport Gateway near Austin-Bergstrom International Airport (ABIA). The developer is St. Croix Capital Corp, which has owned the property since 2007.

Eventually, the 60-acre development will have 40 acres of industrial space and 20 acres of retail space, a total value of roughly $90 million.

Dallas-based Bedford Lodging will be using 3.5 acres of that space to construct the 120-room Residence Inn. The developers also plan to develop another two hotels on the site.

The hotel, only two miles from ABIA, is on a plot of prime real estate. According to developers, it will be the first retail site motorists have access to once they exit the highway for the airport at Riverside Dr.

Read more at the Austin Business Journal.

Opportunity knocks on Woodmoor Apartments in Austin 

(3/9/2015)

AUSTIN - The 208-unit Woodmoor Apartments at 3505 S. Lamar Blvd. has been acquired by Resource Real Estate Opportunity REIT.

Woodmoor consists of 16 two-story buildings and approximately 152,000 of net rentable sf.

Woodmoor is expected to benefit from an extensive value-add strategy that includes deploying new capital to improve the property through enhancements to individual units and common areas, exterior painting and landscaping.

Austin has consistently been among America’s fastest growing cities and, according to the U.S. Census Bureau, has seen its population grow by 37 percent over the past decade. Austin continues to attract young, creative residents who generate significant economic growth by attracting high-paying employers in innovative industries.

Read more at MultifamilyBiz.com.

Austin's hot apartment market lures investors 

(3/6/2015 7:00:00 AM)

AUSTIN - As Austin’s apartment sector continues to reach new heights in rent, occupancy and overall growth, property investors are taking an ever-stronger interest in the market.

Last year, 88 metro area apartment complexes with a total 22,074 units changed hands, at an average price of $109,529 per unit, according to Austin Investor Interests, which tracks the Central Texas apartment market.

That’s a 26 percent increase over 2013, when 70 properties traded. Last year’s average price per unit was also 24 percent higher than the $88,429 per unit price in 2013.

While 2013 was dominated by sales of older properties, 2014 saw sales of more Class A properties entering the mix. The average sales price for the Class A buildings, which included 11 buildings constructed within the past 24 months, averaged $156,960 per unit.

That’s almost 50 percent higher than the sale price for the Class A properties that sold in 2013, which averaged $105,000 per unit, but which included only four sales of complexes built within the prior 24 months.

The highest sale recorded in 2014 was for the Whitley apartment tower downtown. That property sold for about $104.3 million, or $393,479 per unit. Tree, a new apartment complex on South First St., traded for $72 million, or almost $215,000 per door.

Read more at the Austin Business Journal.

tags: ARA Austin Multifamily Stats 4Q 2014 (PDF), Transwestern Austin Apartment MarketWatch Feb. 2015 (PDF); Austin Market Research

Austin's 70,000-SF Southwest Medical Village sells 

(3/6/2015)

AUSTIN - Southwest Medical Village, a recently constructed Class A medical outpatient facility in the southwest submarket, has been sold.

Completed in January 2014, the fully leased asset has approximately 70,000 sf of medical office space and offers above-code parking.

The property at 5625 Eiger Rd. is anchored by Premier Family Physicians, an independent, physician-owned family medicine practice, and also includes 18 other specialty practices.

“Southwest Medical Village is the premier outpatient facility in Travis County,” said Eric Mackey, CBRE senior vice president. “It was designed around the innovative ‘medical village’ concept — a medical office building with a large central family medicine practice, surrounded by selected specialists that agree to offer one-of-a-kind patient access for quality patient care.”

The property is located within Lantana, a 500-acre mixed-used development that is home to corporate campuses for Advanced Micro Devices and Freescale Semiconductor, as well as two Class A apartment communities, 139 condominium units and 330 single-family homes.

As of fourth quarter 2014, the southwest Austin submarket had a vacancy rate of 8.4 percent.

Read more at the GlobeSt.com.

Cedar Park Town Center brings $39 million 

(3/5/2015 6:43:00 AM)

CEDAR PARK - The 182,000-sf Cedar Park Town Center has been sold for $39.1 million, or approximately $432 per sf.

Located at 4601 US 183A, the shopping center is shadow-anchored by Costco and contains several well-established tenants such as Chipotle, In-N-Out Burger, At Home and BJ's Brewhouse.

The property is situated at the intersection of two major freeways, with visibility and access to more than 73,000 vehicles per day.

The complex is 94.5 percent leased. Retail Properties of America Inc. acquired the property from Houston-based The Ainbinder Co.

Read more at CoStar Group and SEC.

SW Austin: another gem with Pearl Lantana apartments 

(3/5/2015 6:30:00 AM)

AUSTIN - Construction has begun on the 444-unit Pearl Lantana, an apartment project along Southwest Pkwy. at 4602 Rialto Blvd. in southwest Austin.

Pearl Lantana will offer one-, two- and three-bedroom layouts ranging from 660 sf to 1,676 sf. Completion of Pearl Lantana is expected in fourth quarter 2016.

Morgan is developing Pearl Lantana.

Pearl Lantana residents will have access to resort-style pools, outdoor areas, a kitchen, poolside cabanas and grilling stations.

Read more at BusinessWire.

Colo. investor goes 'Platinum' with Austin apartment buy 

(3/5/2015)

AUSTIN - Platinum Southside, a 195-unit apartment complex in South Austin, has been sold to private equity firm FrontRange Capital Partners LLC.

Built in 2009, Platinum Southside is located off E. Stassney Lane, just east of I-35.

Platinum Southside offers one-, two- and three-bedroom units averaging 934 sf. Rent varies from $917 to $1,822, and the property was 95 percent occupied at the time of sale.

The property was bought from New York-based Clarion Partners. FrontRange Capital is based in Greenwood Village, Colo.

Read more at the Austin Business Journal.

Texas homebuyer income rises, first-time buyers stifled 

(3/4/2015)

TEXAS - Incomes for those buying homes are increasing at a quick clip in Texas, but some local real estate markets in the Lone Star State are seeing first-time homebuyers stifled by rising home prices, according to a new annual report from the Texas Association of Realtors.

Median household income for Texas homebuyers increased by 5.9 percent to $97,500 between June 2013 and June 2014 — more than four times the national rate, which rose 1.4 percent to $84,500 during that time.

Those homebuyers in Texas are still more likely to buy a new home, as well.

About 28 percent of Texas homes purchased between June 2013 and June 2014 were new homes. While that's a 1 percent drop for Texas, the 28 percent new-home share of the sale mix is almost double the new-home share seen nationally.

Rising prices in places such as Austin are making it harder for people to buy their first home.

First-time homebuyers in Texas dropped by 4 percent to 29 percent of all Texas homebuyers.

Meanwhile, the national first-time homebuyer share of the market rose by 5 percent to 33 percent of homebuyers nationwide.

Read more at the Austin Business Journal and the Texas Association of Realtors.

MPF Research: Austin multifamily 4Q 2014 

(3/3/2015 9:00:00 AM)

AUSTIN - Broad-based economic gains combined with the metro’s already favorable demographics have fueled demand for housing,

The gains have generated strong revenue growth for the apartment sector and led to elevated levels of apartment development, according to MPF Research.

Occupancy has hovered around the 95 percent mark for over three years.

With tight occupancy, apartment operators have pushed rents, but rent growth levels dipped a bit in 2014 in response to a growing amount of completions and notable construction pipeline.

Effective rents increased 3.6 percent in 2014 — a solid rate, but meaningfully lower than the 4.8 percent hike in 2013. Driving the recent slowdown was softness in the top-end of the market.

Properties Sampled 745 Units Sampled 167,388 Submarkets 15


Quarterly apartment demand in Austin showed seasonal weakness during fourth quarter 2014, as 802 units were absorbed. Meanwhile, new supply easily outpaced net demand, which led to a 1.1-point decline in the overall occupancy rate. In response, operators cut effective rents 0.4 percent quarter-over-quarter, the first quarterly decline since 4Q 2012.

4Q 2014 Austin Apartment Trends
Effective Rent Occupancy Annual Job Change Annual Permits Annual Demand Annual Completions
$1,087 94.6% 28,600 jobs 9,484 units 8,868 units 12,115 units


Read more at MPF Research.

tags: 2015 IRR Multifamily Annual Viewpoints,  Transwestern Multifamily MarketWatch Feb. 2015, ARA Multifamily Stats 2014, Multifamily under Austin Market Research.

Austin: 258,000-SF Southpark Meadows III sold 

(3/3/2015)

AUSTIN - Southpark Meadows III, a 257,988-sf Class A commercial area that is part of the 425-acre Southpark Meadows mixed-use development, has been sold.

Southpark Meadows III sits on 25 acres at 9900 S. I-35.

The property includes a Conn’s, Cinemark Theatre, Spec’s, Sheplers Western Wear and Half Price Books. The center has room for another junior anchor taking up about 40,000 sf as well as a few smaller tenants.

Southpark Meadows III was purchased by Rainier Companies and Harbert Mangement Corporation.

Real estate firm CBRE’s National Retail Investment Group marketed the property.

Read more at Community Impact Newspaper.

Report: Austin leads U.S. in downtown job growth 

(3/2/2015 10:15:00 AM)

AUSTIN - Although most newcomers choose to live a suburban life, job growth in Central Austin is now outpacing job growth in the suburbs, according to a new report from City Observatory, an Oregon-based think tank.

In fact, Austin now leads all other U.S. cities in terms of the percentage of its overall workforce working downtown and in downtown job growth.

According to the report titled "Surging City Center Job Growth," the downtown-oriented job growth in Austin mirrors trends seen in metro areas across the nation, reversing suburban-oriented job growth trends that stretch back more than 50 years.

As recently as the five years from 2002 to 2007, job growth was still suburban-oriented around U.S. cities. Then, job growth in suburban areas was growing at about 1.2 percent annually, compared to 0.1 percent in urban cores.

Between 2007 and 2011, a switch happened, with job growth in urban cores rising to 0.5 percent annually, while suburban jobs shrank by 0.1 percent.

In Austin, the urban core job growth flip has been more dramatic.

Between 2002 and 2007, city-center job growth in Austin was about 0.6 percent annually and suburban job growth was about 3.1 percent annually.

Between 2007 and 2011, though, city center job growth in Austin surged to 3.4 percent annually while suburban job growth slowed to 2.3 percent annually. That's the fastest-growing urban core job growth in the nation in that time.

Austin, with 28.8 percent of its jobs located in the urban core, now has the highest level of core employment in the nation, ahead of even New York City, which only has about 23 percent of its employment in its urban core.

Read more at the Austin Business Journal.

Calif. MIG loves Austin; buys 562-unit Midtown Commons 

(2/26/2015 8:00:00 AM)

AUSTIN - Midtown Commons at Crestview Station, a mixed-use property consisting of 562 multifamily units and 58,883 sf of commercial space has sold. The buyer was Newport Beach, Calif.-based MIG Real Estate.

Midtown Commons at Crestview Station is MIG Real Estate's fourth investment in Austin, following the 2014 acquisition of Adagio Swenson Farms Community, the 2013 acquisition of Barton Oaks Plaza and the 2012 acquisition of The Cottages.

"Austin is consistently on the Milken Institute's list of Best Performing Cities where America's jobs are created and sustained, reaching No. 2 in 2014," said Greg Merage, CEO of MIG Real Estate.

The property is located in Central Austin at 810 W. St. John's Ave., adjacent to the Crestview MetroRail Station.

Midtown Commons at Crestview Station consists of five two-, three- and four-story buildings and three parking structures. The commercial portion features two, two-story buildings with ground level retail space and top level creative office space.

The retail portion features tenants such as Midtown Grocery & Cafe, Black Star Co-op Pub & Brewery, Fuzzy's Tacos, Subway, Modo Yoga and Fat Cat's Desserts.

The multifamily component offers studio, one- and two-bedroom floorplans. Common area amenities include two resort-style swimming pools, pool courtyards with fire pits and outdoor kitchens, two fitness centers and more.

Read more at Marketwired.

REOC Austin industrial market 4Q 2014 

(2/26/2015 7:00:00 AM)

AUSTIN - Demand for industrial space led to increased leasing velocity in the final three months of the year resulting in a solid fourth quarter performance for the Austin industrial market.

New leases and expansions generated a robust 548,474 sf of positive net absorption for the period — which measured more than the first three quarters combined.

The local industrial market closed the year with a citywide vacancy rate of 10.9 percent, which is improved compared to 11.9 percent last quarter and relatively stable compared to 10.6 percent recorded in the same quarter of the previous year.

Looking ahead, steady demand for space is expected to continue to tighten vacancy although the delivery of new supply may cause some fluctuations.

Austin Industrial Market 4Q 2014
  Office/Bulk/
Manufacturing/Warehouse
Flex/R&D
Sector Existing
SF
Current
Vacancy
Under
Const.*
Existing
SF
Current
Vacancy
Under
Const.*
Round Rock 2,498,932 17.8% 240,000 663,446 3.5% 22,000
North 10,177,069 10.3% 0 5,002,017 6.4% 0
Northeast 4,115,363 5.2% 153,000 3,016,576 32.5% 0
East 1,283,071 3.8% 0 0 0.0% 0
Southeast 4,882,511 5.0% 351,805 4,259,656 13.8% 0
South 1,945,884 11.7% 0 131,848 0.0% 0
Total 24,902,830 9.0% 744,805 13,073,543 14.6% 22,000

*Expected to deliver within six months

See REOC Austin's full report. See more categories under Austin Market Research.

tag: CBRE Austin Industrial MarketView 4Q 2014 (PDF); Transwestern 2014 Austin Industrial MarketWatch (PDF)

Jobs, construction show Apple's continuing growth in Austin 

(2/26/2015)

AUSTIN - Apple Inc. is continuing its expansion in Austin, according to city and county documents obtained by the Austin American-Statesman.

The technology giant has already created more than 900 full-time jobs in its Austin operation as of the end of 2013, the most recent year for which data are available, according to a report the company filed with Travis County.

That’s on top of 3,100 local positions the company agreed to retain. As of the end of 2013, Apple reported 4,091 full-time employees in Austin.

What’s more, in a report last month to the City of Austin, Apple said it is about 67 percent completed with its Americas Operations Center, which it has valued at more than $348 million.

Taken in total, the documents suggest that Apple is outpacing its agreed-upon performance metrics, for which it is scheduled to receive millions in incentive payments from the city, county and state.

In 2012, the Austin City Council approved $8.6 million in tax breaks for Apple in exchange for the Cupertino, Calif.-based company establishing its Americas Operations Center here. Apple also is in line for $21 million in state incentives for the project, along with between $5 million and $6 million from Travis County.

Apple, in turn, agreed to create more than 3,600 new full-time jobs in Austin while retaining at least 3,100 existing full-time jobs. The company also agreed to spend $282 million on new buildings and equipment in Austin over the next decade.

Read more at the Austin American-Statesman.

Texas State adding $10M wet lab in San Marcos 

(2/26/2015)

SAN MARCOS - Texas State University plans to spend $10 million to pay for an addition to the STAR Park research facility that will provide facilities for life sciences companies in Central Texas.

The addition to the STAR One building will feature wet lab space that will be used by companies requiring chemistry work and other research conducted for the development of pharmaceuticals and biotech-related products.

Another component of the addition will be office space that will be made available for outside leasing.

The university has also committed to building out the 6,000 sf of shell space in the building with the hope of attracting research work from businesses involved in geospatial tools, computer engineering, water and environmental science, advanced education and advanced infrastructure materials, among others.

Local need for wet lab space is expected to heat up as the Dell Medical School at the University of Texas nears completion and more life sciences startups go into business in Austin.

Read more at the Austin Business Journal.

Lakeway: All-Ways Storage sells to Maryland firm 

(2/25/2015)

LAKEWAY - The 538-unit All-Ways Storage facility at 15402 Kollmeyer Dr. and 911 N. Ranch Rd. has been sold.

The site includes 131 climate-controlled and 386 non-climate-controlled units, along with 21 uncovered outside storage parking spaces. The property sits on three tracts of land with frontage along RR 620.

A Maryland-based self-storage company purchased the property.

Read more at Texas Real Estate Business.

Colliers: Austin Office Market Research and Forecast 4Q 2014 

(2/25/2015)

AUSTIN - Office vacancy rates decreased by 13.1 percent between third quarter 2014 and 4Q 2014, according to Colliers International.

However, citywide absorption slowed to 206,565 sf in 4Q 2014 compared to 728,703 sf in 3Q 2014.

The citywide average rental rate decreased 1.5 percent from $28.20 per sf to $27.79 per sf when compared to 3Q 2014, but increased from $27.19 per sf to $27.79 per sf since 4Q 2013.

Demand for office space remains strong spurring new development. Of the 26 buildings currently under construction citywide, 41.5 percent of that office inventory is already preleased.

The report shows CBD and suburban data with rental rates and vacancy

Austin Office Market Indicators 4Q 2014
Indicator 3Q 2014 4Q 2014
Net absorption (SF) 728,000 207,000
Avg. vacancy 9.7% 9.6%
Avg. rental rate
(per SF)
$28.20 $27.79
Delivered
inventory (SF)
0 131,500


Find CBD, suburban and citywide data in Colliers International Research and Forecast Report.

tag: Austin Market Research, Austin office NewsTalk

TACC adding sweet 'Pickle' with 38,000-SF center in Austin 

(2/25/2015)

AUSTIN - Texas Advanced Computing Center (TACC) has announced its third expansion in 13 years to accommodate the center's growth and demand for computing systems.

TACC has broken ground on a new three-story, 38,000-sf building adjacent to its existing facility, which is expected to be completed in January 2016.

TACC sits on The University of Texas’s J.J. Pickle Research Campus at 10100 Burnet Rd.

TACC is able to keep growing because users can tackle more challenging problems in science and engineering and access more types of systems, such as data storage and cloud computing, according to TACC Executive Director Dan Stanzione.

Users are more diversified because more industries, such as biomedical, realize the usefulness of computing in their fields. Stanzione said in the biomedical field, genomics — the study of genetics and molecular biology — is now a digital science instead of just a lab-based science.

Read more at Community Impact Newspaper.

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