NewsTalk Texas

Austin-Round Rock

Downtown Austin cranking cranes up to Aloft, Element hotels 

(8/27/2015 3:30:00 PM)

AUSTIN - White Lodging has broken ground on two new hotels — an Aloft and an Element — and both will be located at East Seventh St. and Congress Ave.

The new Aloft and Element hotels planned for downtown Austin will add about 400 hotel rooms to the city’s inventory and are expected to open by summer 2017.

White Lodging — the Austin area’s largest hotel operator, adding more than 1,300 rooms this year — already has more than 20 hotels in Central Texas.

The trendy, upscale Aloft and Element brands are both affiliated with Connecticut-based Starwood Hotels and Resorts Worldwide.

Read more at the Austin American-Statesman.

Click: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

Also of interest: Battle of hotel revenue: Austin surpasses Alamo City

Battle of hotel revenue: Austin surpasses Alamo City 

(8/27/2015 9:55:00 AM)

AUSTIN - For the first time, according to industry tracker Source Strategies Inc., Austin-Round Rock passed up the Alamo City, generating more hotel revenue than a market so heavily dependent on the tourism sector.

Austin hotels generated more than $315 million in second quarter 2015 — an 18.1 percent improvement over the same three-month period the previous year, according to Source Strategies’ latest Hotel Brand Report.

San Antonio’s hotel industry generated $299 million in revenue in 2Q 2015 — a 2.3 percent decline from 2Q 2014.

Austin is outperforming San Antonio in another critical area — REVPAR, or revenue per available room. Austin’s hotel industry eclipsed $105 in REVPAR in 2Q. San Antonio hotels generated just over $71 on average in revenue per available.

2Q 2015 Texas Metro Hotel Revenue
Metro Areas %
Market
Total Revenue* %
Chg.
%
Occ.
2014 2015
Dallas-Fort Worth-
Arlington
26.7% $651.5 $700.2 7.5% $72.15
Houston-The Woodlands-
Sugar Land
23.6% $624.6 $618.2 -1.0% $78.98
Austin-Round Rock 12.0% $267.1 $315.4 18.1% $105.36
San Antonio-New Braunfels 11.4% $306.1 $299.0 -2.3% $71.06
Non-Metro Areas 8.3% $230.5 $216.8 -6.0% $46.39
Corpus Christi 2.9% $74.8 $76.2 1.9% $66.03
Midland & Odessa 1.9% $58.8 $48.7 -17.2% $71.91
Balance of Texas 13.3% $346.5 $349.8 1.0% $50.51
Total State of Texas 100.0% $2,559.8 $2,624.2 2.5% $68.74


*total revenue in millions
*Metro Areas include seven metros with revenue gains exceeding 7%.

Get more hotel data for Texas cities, MSA's and counties from Source Strategies.

Read more at the San Antonio Business Journal.

Round Rock: 304-Unit Lone Oak sells to Passco 

(8/27/2015)

ROUND ROCK - Passco Companies LLC has acquired Lone Oak Apartments — a 304-unit, Class A garden-style multifamily community.

Lone Oak Apartments was completed in 2014, and is currently 92 percent occupied.

The units are spread across 16 three-story buildings, with one-, two- and three-bedroom floorplans.

Gary Goodman of Passco Companies noted the Austin apartment market’s average occupancy rate is 94.4 percent, while the Round Rock area’s rate is as high as 97.8 percent.

“In both Austin and its Round Rock submarket, occupancy rates have increased each year for five consecutive years,” Goodman notes. “As occupancy climbs and Austin expands, renters will continue to look outside the downtown area for housing.”

Read more at RealEstateRama.

Click Austin-Round Rock Market Research for quarterly reports.

501 Congress 'passes' to sold in Austin 

(8/26/2015 11:45:00 AM)

AUSTIN - The 501 Congress building — a Class A office building in a prime downtown Austin location with some high-profile tenants — has been purchased by AFIAA Swiss Foundation, an investment entity of 40 Swiss pension funds that focuses on international commercial properties.

The acquisition includes a newly constructed parking garage that adjoins 501 Congress.

The 116,000-sf building formerly was a five-story annex to the adjoining 26-story Bank of America tower.

Stream Realty Partners gutted the annex into a contemporary building that now houses cloud file-sharing giant Dropbox Inc.; Charles Schwab; wine-storage company Vine Vault; Allen Edmonds, a manufacturer and retailer of men’s footwear; and EMC2 Corp., the world’s largest supplier of data storage systems.

AFIAA is an investment foundation with offices in Zurich, New York and Sydney.

Read more at the Austin American-Statesman.

Click Austin NewsTalk Texas and Austin Market Research.

Austin's Broken Spoke still in the middle; The 704 for sale 

(8/26/2015 11:30:00 AM)

AUSTIN - Denver-based real estate manager Amstar, acting on behalf of one of its public retirement system clients, and its partner Transwestern Development Co. have built and decided to sell The 704, a Class A mixed-use apartment development.

The 378-unit multifamily property with 20,000 sf of retail and restaurant space, located at 3401 S. Lamar surrounds the famed Broken Spoke, a Texas country-western dance hall.

Amstar and Transwestern Development Co. acquired the seven-acre site in May 2012 and built the property.

“With The 704 now 97 percent leased, it was perfect timing to bring the asset to market," Josh Delk, associate vice president of Transwestern Development Co. said.

“Austin is an attractive market for investors due to its low vacancy and rising rents, presenting favorable conditions to market The 704.”

The property’s other retail space is leased to several local and national tenants, such as aRoma Italian Kitchen and World of Beer tavern.

Read more at Commercial Property Executive.

Click: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

354-Unit Altís Lakeline rises in NW Austin 

(8/26/2015)

AUSTIN - The Altman Cos. — a developer of luxury apartment communities — has broken ground on its first development in Austin’s Northwest submarket.

Located at 12700 Ridgeline Blvd., the 354-unit complex will be known as Altís Lakeline.

The property will consist of 19 two- and three-story residential buildings, and the floor plans will include one-, two- and three-bedroom units.

The gated community has private entries and attached garages, as well as private balconies and patios. The clubhouse includes a Starbucks, conference room, fitness center and a yoga and aerobics studio.

Read more at Texas Real Estate Business.

Click: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

College Credit for Heroes marches to Grayson College 

(8/25/2015)

SHERMAN-DENISON - The Texas Workforce Commission (TWC) recently announced the award of $800,000 to support five new accelerated certificate or degree programs through its College Credit for Heroes program, a statewide effort designed to maximize the award of college credit to veterans and service members for their military experience.

The announcement further expands the reach of the successful program, which has now grown to include a network of 37 universities and community college partners.

College Credit for Heroes welcomes five new school projects — including Grayson College — to the third phase of the program:

Grayson College (GC), Denison: $200,000 is dedicated to providing internship collaborations with industry partners in advanced technologies and manufacturing certifications created during Phase I and to replicate program areas developed by Phase I and II CCH grantees in which academic credit may be awarded for military training and experience, specifically in the area of health care.

Unique to Texas, College Credit for Heroes has achieved success by establishing a standard evaluation process used across the state for veterans to receive classroom credit, by growing a vast network of partner schools and by supporting the development of 76 fast-track programs to help veterans translate their military experience into civilian careers.

To read more and see a list of the new school projects, see the Texas Workforce Press Release.

For a complete list of participating schools and fields of study, visit collegecreditforheroes.org.

Austin-area July home sales sizzle 

(8/24/2015)

AUSTIN-ROUND ROCK - Amid a hot summer selling season, Central Texas home sales hit an all-time high in July and the median price rose 8 percent, according to the Austin Board of Realtors.

In its latest monthly report, the board said there were 3,149 existing home sales in July. That was a 12 percent increase over July 2014’s volume and was the highest monthly total on record.

The median price set a record for the month of July, rising to $269,500. In July, fewer than 30 percent of single-family homes sold in Central Texas were priced below $200,000.

There were 7,174 houses on the market, a 5 percent year-over-year increase that boosted inventory levels up to a supply of three months for the first time since July 2014.

However, the supply remains below the 6.5-month level that is considered to be a market where neither buyers nor sellers have the upper hand.

Read more at the Austin American-Statesman.

Click to see the ABOR July Market Report and ABoR: Austin area home sales July 2015,

Click Austin NewsTalk Texas and Austin Market Research.

Amazon places order for 1,000 new jobs in San Marcos 

(8/21/2015 11:30:00 AM)

SAN MARCOS - Amazon.com Inc. has agreed to open a fulfillment center in San Marcos with plans to hire up to 1,000 people when it reaches full capacity.

The 855,000-sf facility, which will be the online retail giant’s fifth in Texas, will begin construction at the end of 2015 and is expected to open in 2017. It will hire 350 people upon opening.

In July, the San Marcos City Council approved an incentives package that featured a 40 percent reduction in city property taxes for ten years.

The facility will be on McCarty Lane and won't be far from a similar facility operated by Walmart Stores Inc.

The news about Amazon's San Marcos center comes on the heels of its June announcement that it plans to hire an additional 300 people at its 1.25 million-sf fulfillment center in Schertz, where it already employed 450 people.

Read more at the San Antonio Business Journal.

Need 2Q 2015 reports, see Austin Market Research. Check out Austin NewsTalk.

ABIA breaks passenger records... once again 

(8/20/2015)

AUSTIN - For the third month in a row, Austin Bergstrom International Airport has set a monthly passenger record, with 1,165,811 travelers making their way through the airport in July.

According to the airport's announcement, this is the seventh time in the past 17 months that the airport has set a passenger traffic record.

Further, it is the 34th consecutive month that the airport has grown its traffic — a feat it has accomplished 66 out of the past 67 months.

In all, total passenger traffic rose 16 percent compared to July 2014.

The most-active airline at the airport in July was Southwest Airlines, with 435,191 passengers, an increase of 13.5 percent compared to July 2014.

Austin-Bergstrom International Airport
July 2015 Statistics
Carrier* Passengers Y-O-Y
Chg.
Southwest Airlines 435,191 13.50%
American Airlines 190,947 6%
United Airlines 185,719 15%
Delta Air Lines 136,224 0.4%
U.S. Airways 50,664 20.50%
JetBlue Airways 48,307 -1.00%
Frontier Airlines 43,589 165%
Virgin America 25,800 135%
Alaska Airlines 17,734 74.5%
Allegiant Air 15,283 207%
Total enplanements 585,478 16.00%
Total passengers 1,165,811 16.00%


*Carriers listed by number of passengers

Source: Austin-Bergstrom International Airport

Read more at the Austin Business Journal.

Want more stats? See Infrastructure under Austin Market Research.

Transwestern: Austin apartment watch Aug. 2015 

(8/18/2015 11:00:00 AM)

AUSTIN - Transwestern has released its August 2015 Apartment Market Watch report for Austin's apartment sector.

Austin Submarket Apartment Statistics Aug. 2015
Submarket* Units Occ. Class A
Rent PSF
Class B
Rent PSF
Avg. Rent
PSF
Far North 20,814 93.60% $1.37 $1.17 $1.25
Northwest 17,587 96.20% $1.25 $1.18 $1.19
Southeast 14,885 94.10% $1.56 $1.19 $1.28
South 14,615 94.80% $1.41 $1.20 $1.37
Southwest 13,949 91.20% $1.40 $1.34 $1.37
Northwest Hills 13,566 94.80% $1.38 $1.36 $1.32
North 10,760 96.90% $1.50 N/A $1.18
Round Rock 10,752 96.60% $1.17 $1.12 $1.14
Central 10,351 88.10% $1.94 $1.81 $1.80
Northeast 10,262 95.90% $1.73 $1.18 $1.29
Travis County 124,739 93.20% $1.62 $1.27 $1.36
Austin MSA 161,454 93.60% $1.50 $1.23 $1.31


*Survey includes top ten Austin submarkets by number of units.
**Travis County and Austin MSA totals include all 16 Austin submarkets.

Source: Transwestern

See Austin Apartment Market Watch August 2015 (PDF) for the full report.

Click Austin NewsTalk and Austin Market Research for updated quarterly reports.

Sacks, sax, Saks? Austin struts 50,000-SF Saks Fifth Ave. 

(8/18/2015 8:30:00 AM)

AUSTIN - High-end clothier Saks Fifth Ave. Off 5th will open its first store in the Austin area in early 2016.

The 50,000-sf store will be located at Gateway Shopping Centers on Research Blvd., at the intersection of SH 183 and Capital of Texas Hwy.

The high-fashion value retailer is known for its wide range of modern and classic merchandise, including assortments from Saks Fifth Ave., new shipments direct from the world's top designers and exclusive collections.

Gateway Shopping Centers is anchored by Whole Foods Market Inc.

Read more at the Austin Business Journal.

Click: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

Transwestern: Austin retail market Aug. 2015 

(8/18/2015)

AUSTIN - Transwestern has released its August Market Watch report for the Austin area's retail sector.

The report contains submarket statistics on retail sales and retail leases.

Austin Retail Lease Statistics by Submarket
Submarket #
Bldgs.
Inventory YTD
Net
Absorption
Total
Occ.
Avg.
Net
Rent
CBD 16 989,985 55,013 96.8% $25.56
Central &
West Central
87 6,735,627 37,087 96.0% $17.45
North 74 5,068,815 61,458 96.1% $14.79
Northeast & East 74 4,450,552 61,108 97.5% $14.51
Northwest & Far
Northwest
96 6,812,399 42,392 92.1% $16.57
Round Rock &
Cedar Park
142 11,722,806 255,524 95.2% $19.21
South 101 7,738,131 129,594 98.1% $21.48
Southeast 24 1,533,650 1,400 99.7% $13.32
Southwest 66 5,937,211 39,905 98.6% $18.27
Austin total 680 50,989,086 683,481 96.2% $17.56


Source: Transwestern

See Austin Retail Market Watch August 2015 (PDF) for the full report.

Click: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

$10M secured for 170,000-SF Round Rock portfolio 

(8/18/2015)

ROUND ROCK - HFF has secured $10 million in financing for a three-property industrial/flex portfolio totaling 171,058 sf in Round Rock.

The properties include:

  • AmoRon 6, located at 800 Paloma Dr. and built in 1985, is 51,928 sf.
  • Oakmont, located at 2711 Oakmont and built in 2002, is 61,542 sf.
  • Corridor Park Pointe, located at 100 Michael Angelo Way, is 61,766 sf.


Loan proceeds will be used to facilitate the purchase of AmorRon 6 and refinance Oakmont and Corridor Park.

Read more at Globe St.

Don't miss out! Austin NewsTalk, Austin Market Research

Austin: Stassney Heights' $19M sale 

(8/13/2015 10:00:00 AM)

AUSTIN - RioCan Real Estate Investment Trust (RioCan REIT) paid $19 million for Stassney Heights — a 103,000-sf shopping center constructed in 2000 at 5510 S. I-35 in Austin's South submarket.

The center is anchored by Fiesta Mart and also houses locations for a number of national and local retailers.

General Electric Capital Corp. and Thackeray Partners were the sellers.

Source: CoStar Group

Grim reality: Austin multifamily, retail, office rents climb 

(8/13/2015 8:15:00 AM)

AUSTIN - If you are trying to rent any type of property in Austin these days, the amount you will pay is going up dramatically.

  • Residential rents in the Austin area have increased sharply in the first six months of the year, up 5.5 percent to $1.33 per sf in June, according to a mid-year report from Capitol Market Research.

    Meanwhile, occupancy rates have held steady at about 94 percent since the start of the year, stemming a nearly 4 percent drop in occupancy rates that began in second quarter 2012.

    According to the data, rents increased in all Austin submarkets in the first half of the year. They were led by an 8.3 percent increase in rents in Round Rock to a 2.5 percent increase in rents in San Marcos so far in 2015.

    During the first six months of the year, occupancy levels in the Austin retail real estate market increased from 92.7 percent to 94 percent. As occupancy levels rose, rental rates for vacant space in the city increased by $1.16 per sf to $21.01 in June.
     
  • New retail construction was almost entirely made up of ground-floor retail in new mixed-use projects such as Lamar Union, Seaholm, and Corazon concentrated in the region’s downtown core.

    According to data distributed by Capitol Market Research, more than 1.6 million sf of new shopping center space has already broken ground, and more than 3.7 million sf of future retail space is planned. This means that a lot of new inventory is coming on the market through 2016.
     
  • Office rental rates are climbing even as vacancies are slightly increasing in this sector. This is because a crop of new commercial office development has come online in the past year.

    In June, the average office rental rate climbed up to $32.83 per sf, $3.62 per sf more than at the same time in 2014. Class A average rents rose 10.6 percent compared to the same time last year to $47.80 per sf.
     

Read more at the Austin Business Journal. Also see Austin Market Research for 2Q 2015 reports.

ABoR: Austin area home sales July 2015 

(8/13/2015 7:55:00 AM)

AUSTIN - The Austin Board of Realtors has released home sales facts for July 2015.

  • The median price of existing single-family homes decreased to $265,000, down 1.9 percent from June 2015.
  • Existing single-family home sales decreased 0.8 percent from June 2015 for a July 2015 total of 2,684 sold units.
  • Condos decreased in price to $215,000 down, 5.2 percent from June 2015.
  • Existing condo sales decreased 1.7 percent in July 2015 over June 2015 for a total of 297 sold units.
     
Austin Region Sales and Price Activity by Units Sold
MLS Wide Units Sold
  July 15
Median Price
  July 15
Price Chg.
July 2014
Sale Chg.
July 2014
ACTRIS* (single-
family)
2,684 $265,000 6.00% 3.90%
ACTRIS (condo) 297 $215,000 10.80% -3.90%
Region Cities**        
Austin 1,080 $340,000 7.90% 0.50%
Round Rock 297 $215,000 10.80% -3.90%
Georgetown 267 $237,000 0.50% 0%
Cedar Park 158 $265,050 6.00% -3.70%
Pflugerville 138 $208,550 4.30% 4.50%
Leander 131 $215,000 9.70% 6.50%
Kyle 86 $184,500 10.80% 11.70%
Hutto 75 $186,500 17.80% 19.00%


*Austin/Central Texas Realty Information Service
**Region Cities' data includes single-family only and represents eight select cities that sold 75 or more units during July 2015.

See the full report from the Austin Board of Realtors.

Click: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

Austin 296-unit Falcon Ridge sells to Griffis 

(8/13/2015)

AUSTIN - Denver-based Griffis Residential picked up its fourth investment in Austin with the purchase of Falcon Ridge in Austin's South Congress area.

Falcon Ridge is a 296-unit multifamily community constructed in 2000 at 500 E. Stassney Ln. next to Williamson Creek Greenbelt and just a few miles south of downtown Austin by way of I-35.

Rebranded as Griffis SoCo Austin, the gated garden-style community incorporates one- to three-bedroom floor plans, ranging from 590 to 1,256 sf, with on-site amenities that include a clubhouse, fitness center, reserved covered parking, two pools and a space. Rent ranges from $945 to $1,665.

Read more at CoStar Group.

Click Austin NewsTalk and Austin Market Research for free data and link to your own website or blog.

Austin office rental rates reach 'high-water mark' 

(8/13/2015)

AUSTIN - Rental rates have reached a new high-water mark in the Austin market, according to a new report from Cushman & Wakefield | Oxford Commercial (CWOC).

“The Austin office market continues to operate in peak conditions. Office buildings are selling at historic prices, available spaces are quoting historic lease rates and occupancy rates remain higher than ever before,” Melissa Totten, associate vice president with CWOC, says. “New construction continues to dominate the skyline, as many buildings are spoken for, prior to their respective completions.”

The overall office vacancy rate declined to 9.7 percent, compared to 10.2 percent at the end of second quarter 2014.

The average full-service asking rate increased to $32.83 per sf, up 12.4 percent from this time last year. The CBD saw the greatest gains — growing to $47.80 per sf, up 10.6 percent from the end of 2Q 2014.

Asking rental rates are the highest rate CWOC has ever recorded since it started tracking the stats in the early 1990s.

The climb is attributed to 1.08 million sf being absorbed during the first half of 2015, soaring 61.9 percent since the end of 2014. The 1.08-million figure year compares to 667,901 sf absorbed in the first half of last year.

Read more at Globe St.

Click to see 2Q 2015 Cushman & Wakefield | Oxford Commercial’s Austin Office Snapshot.

Don't miss out! Austin NewsTalk, Austin Market Research

Home on the range Anthem: master-planned community near Kyle 

(8/12/2015)

SOUTH OF AUSTIN - Another huge master-planned development is in the works south of Austin that could include as many as 2,200 homes after Clark Wilson Builder Inc. purchased Nance Ranch, a 673-acre tract near Kyle.

The property has frontage on Farm to Market 150 about one mile west of Ranch Rd. 2770.

The future community is surrounded on the north and west by large ranches, many of which have conservation easements, prohibiting future development and ensuring long-term Hill Country views, the builder said in its announcement.

Clark Wilson is in the early phases of designing the new master-planned residential community, dubbed Anthem, targeting the emerging move-up market. A mix of single-family lot sizes will be available.

Engineering and design work has begun with new homes slated to be ready in 2016.

Read more at the Austin Business Journal.

Click Austin NewsTalk and Austin Market Research (see the updated quarterly reports in commercial real estate).

Austin: 1M-SF IBM Broadmoor sells for $211M 

(8/12/2015)

AUSTIN - Brandywine Realty Trust has acquired the remaining interest in the IBM Broadmoor campus in North Austin consisting of seven office buildings and the 66.0 acre underlying land parcel located for an aggregate purchase price of $211.4 million. 

The office buildings contain 1,112,236 net rentable sf of office space and were 100.0 percent occupied as of June 30, 2015.

Officials with Brandywine said the company will move forward with plans to create a master plan to ensure an accelerated transition into a mixed-use, multi-tenant destination that will offer new amenities for workers in and around the seven-building Broadmoor campus.

The IBM Broadmoor campus is located at 11501 Burnet Rd.

The Broadmoor campus was developed for IBM, which has been the sole occupant and a joint venture partner with Brandywine and its predecessor company since the campus was developed in 1991.

IBM will continue to maintain a presence on the campus; the tech giant currently occupies about 87 percent of the development.

The campus is adjacent to the Domain mixed-use project near MoPac Blvd. (Loop 1) and Burnet Rd., which is home to scores of retailers along with apartments, offices, hotels and restaurants.

Read more at the Austin American-Statesman, SEC.

Don't miss out! Austin NewsTalk, Austin Market Research

Downtown Austin: flood of multifamily units in forecast 

(8/11/2015)

AUSTIN - The latest apartment survey published by Austin Investors Interests LLC indicates vacancies are growing substantially in that particular market segment.

New deliveries have pushed occupancy to 82 percent in the urban core, compared to 90 percent last quarter.

Consider this — in the past 12 months about 2,341 luxury units have delivered in a four-mile radius of downtown and more than double that are under construction in the same area.

Rents in the new luxury properties downtown — mostly high-rise and mid-rise buildings — range dramatically in price, too, but all well above the market average.

Average price per sf of new build in the urban core is anywhere from $1.73 per sf to $3.16 per sf.

The next several months will be very telling about developers' decisions to flood the market with expensive units.

Here are a few other highlights of the report:

  • Average rent across Austin market is $1.31 per sf, about 6 percent more than a year ago.
  • The highest rents are in the Central Business District where the average across all product types is $2.52 per sf, an increase of 2.2 percent from a year ago.
  • Rents have increased the most during the past year in Bastrop (9 percent) and the northeast submarket (8.2 percent).
  • Average rent is the lowest in Bastrop, averaging $1 per sf.
  • The overall occupancy rate for apartment communities that are stabilized is 93.6 percent.
  • Two submarkets in specific categories are posting 100 percent occupancy: Class B product in Bastrop and Class C product in Cedar Park and Leander.
  • Concessions, such as free rent for several weeks, are returning to the market, mostly among new apartment communities downtown.
  • About 2,615 new apartment units delivered across the market in 2Q 2015. About 12,080 units are scheduled to deliver in the next year.
  • Investment sales are strongest in the Class C product, where assets are trading at an average of $81,000 per unit. Compare that with newer Class A communities that are selling for an average of $218,766 per unit.


Read more at the Austin Business Journal.

Click Austin NewsTalk and Austin Market Research.

Be Austin's guest, hotel boom in downtown 

(8/11/2015)

AUSTIN - Downtown Austin’s hotel-building boom is showing no signs of slowing down.

The number of hotel rooms in the city’s central business district has grown to 8,000 with recent additions, such as the 366-room Westin Austin Downtown, which opened last month.

With at least ten more projects in various stages of development, including a 1,066-room Fairmont that’s set to become the city’s largest hotel, that number is expected to grow to at least 11,000 in the next few years.

A few blocks from the Fairmont, the Hotel Van Zandt will be the next downtown hotel to open. A boutique hotel affiliated with the Kimpton brand, it will add 319 rooms to the available inventory when it debuts later this year.

Other properties under construction have opening dates that stretch into 2016, 2017 and 2018 — but that might not be the end of the building boom.

Indiana-based White Lodging, the city’s largest hotel operator, recently snagged a half block site on East Cesar Chavez St. adjacent to the Austin Convention Center.

Hotels are popping up outside downtown, as well. One of the biggest is the 194-room, Italian-inspired Hotel Granduca, at 320 S. Capital of Texas Hwy. (Loop 360) in the Westlake area. Hotel Granduca is set to open in either October or November.

With all the new competition, many of the city’s existing hotels have been pouring millions of dollars into renovations.

Colorado-based Sage Hospitality spent $7 million to upgrade a Courtyard and Fairfield Inn and Suites near the University of Texas campus and will soon kick off a $12 million renovation of a DoubleTree hotel it recently acquired near I-35 and U.S. 290 in North Austin.

The Hyatt Regency Austin is getting a $12 million remodel, too, that will remake all 448-guest rooms. That follows a recently completed $20 million project that added a parking garage and ballroom.

Read more and see a map of planned hotels at the Austin American-Statesman.

Don't forget! Click Austin-Round Rock Market Research and Austin-Round Rock NewsTalk.

Austin: Boston buyer runs to Burnet Flats 

(8/11/2015)

AUSTIN - Strong job and population growth keep Austin in the top five multifamily investment markets without any sign of a slowdown.

As a case in point, U.S. Real Estate Investment Fund LLC (US REIF), a subsidiary of Boston-based Intercontinental Real Estate, acquired a year-old, 179-unit community in central Austin.

Completed last year and located at 5453 Burnet Rd., Burnet Flats offers one- and two-bedroom apartments that range from 600 sf to 1,141 sf.

Terms were not disclosed, but the buyer obtained a $20.4 million, ten-year fixed-rate Freddie Mac loan originated by Capital One. The property also includes 2,853 sf of retail space.

See Multi-Housing News for more.

290,000-SF Parmer 6.2 trades in Austin office park 

(8/10/2015)

AUSTIN - Parmer 6.2 — a 292,000-sf office/flex building located at 301 Howard Lane — has been acquired by Casa Marco.

Casa Marco’s acquisition is currently 80 percent leased to Allergan and Brown Traffic Products Inc. Casa Marco subsidiary Permalite Inc. will occupy the remaining space at Parmer 6.2.

The building is one of three similarly sized institutional-quality buildings that make up PARMER’s fully occupied first phase, known at Sector 6.

With the transaction, Karlin Real Estate has closed out its 1 million-sf Phase 1 of PARMER Technology and Office Park with the sale.

Karlin acquired the buildings from Dell in December 2012 when the computer-maker moved to consolidate its operations to a 350-acre complex in Round Rock. Since then, the Los Angeles-based investor has been able to backfill 100 percent of the vacant buildings with a variety of Fortune 500 and privately held companies including GM, Allergan and Met Laboratories.

Earlier this month, Karlin announced the sale of Parmer 6.1, a 302,000-sf office/flex building at 13201 McCallen Pass to GM, which the automaker will use as office space to complement its existing Austin IT Innovation Center.

In addition to the ongoing development of the park’s infrastructure and amenities, Karlin and Trammell Crow Co. (TCC) are completing the first phase of new office construction at PARMER, with Parmer 3.2, a three-story, 192,000-sf office building.

Karlin/TCC have plans to break ground on the sister building, Parmer 3.1 later this year. Both buildings are designed for single- or multi-tenant occupancy, and will feature 64,000-sf floor plates.

Read more at Globe St.

Click Austin NewsTalk and Austin Market Research for free data and link to your own website or blog.

Austin: Spiceworks HQ moves, hiring 100 

(8/10/2015)

AUSTIN - Software maker Spiceworks Inc. has moved into a new headquarters — it’s fourth since launching in 2006.

The Austin company relocated from a 56,000-sf space near RR 2222 to a 95,000-sf office in Westlake Hills near Capital of Texas Hwy.

The building, across the driveway from Bazaarvoice Inc., includes a yoga studio, basketball court and a fitness center.

The company now employs 390 workers but expects to hire 100 workers this year. The company is advertising 37 Austin jobs on its website.

Spiceworks is now serving 5 million users per month and revenue increased 40 percent last year compared with 2013.

Read more at the Austin Business Journal.

Click Austin NewsTalk and Austin Market Research.

Austin: 330,000 SF in The Domain sold 

(8/7/2015 10:00:00 AM)

AUSTIN - Dallas-based Tier REIT has acquired 332,000 sf in two Class A office properties at The Domain and a partnership interest in two additional offices totaling 337,000 sf.

Dallas-based Tier REIT is moving quickly to put its stamp on the Austin commercial real estate scene. It is also partnering with Cielo Property Group on an office tower that will be constructed at the site of the Austin Music Hall downtown.

Also, as part of the acquisition, Tier REIT has acquired about 27 acres of land in an area that is a hotbed of development — everything from corporate headquarters to hotels to apartments.

"Our Austin portfolio has the potential to grow through development to more than 2 million sf over the next several years," said Scott Fordham, CEO and president of Tier REIT.

TIER, meanwhile, also owns the Terrace Office Park, about 620,000 sf of office space overlooking the Barton Creek greenbelt southwest of downtown.

Read more at the Austin Business Journal.

More background information? See From melodies to offices: Austin Music Hall to be demolished.

Click Austin NewsTalk and Austin Market Research.

Marble Falls opens $100M hospital 

(8/7/2015)

MARBLE FALLS - A $100 million hospital has opened in Central Texas and marks a rare instance when a hospital has opened its doors in a more rural area of the state rather than in a city.

Baylor Scott & White Medical Center in Marble Falls, about an hour northwest of Austin, is a 46-bed hospital that's seeing its first patients this week.

Baylor Scott & White Hill Country Region President Eric Looper says Burnet County historically has been a rural region but it's seeing steady growth that's drawing many retirees and others.

Don McBeath with the Texas Organization of Rural and Community Hospitals says it's unusual for a hospital to open in a rural setting.

Source: NewsWest9.com

170,000-SF Austin office space wedges its way to new owner 

(8/6/2015)

AUSTIN - Dallas-based Velocis has sold two Austin office buildings to Wedge Group, a Houston-based private equity firm.

The two Class A Austin office buildings, Arboretum Atrium and Las Cimas I, total more than 170,000 sf in prime Austin submarkets.

Arboretum Atrium is a 91,083-sf office building with a three-story atrium. It is located in the heart of the Arboretum area in Northwest Austin and one of the largest office markets in Austin. The asset is currently 100 percent leased.

Las Cimas I is an 82,787-sf, three-story office building located at the corner of Bee Caves Rd. and Capital of Texas Hwy. in Austin’s Southwest submarket. The asset is currently 100 percent leased, over 90 percent of which is occupied by a single large tenant.

Read more at Globe St.

Don't forget! Click Austin-Round Rock NewsTalk and Austin-Round Rock Market Research.

Austin: Cushman & Wakefield Office 2Q 2015  

(8/6/2015)

AUSTIN - For May 2015, the Austin MSA posted a 3.1 percent unemployment rate, the lowest of the largest 50 metros in the United States for another consecutive quarter, according to Cushman & Wakefield’s second quarter 2015 report.

A total of 327,660 sf of direct absorption was recorded for 2Q 2015. This brought the year-to-date total for 2015 to an impressive 1,081,174 sf of direct absorption. This YTD total for 2015 is 61.9 percent higher than the YTD direct absorption recorded at the end of 2Q 2014.

The total market posted an overall vacancy rate of 9.7 percent for 2Q 2015, marginally higher than the overall vacancy rate of 8.7 percent observed in 1Q 2015.

High demand, competition for vacant space and low vacancy rates continue to push full service (FS) market asking rates to historic highs. For 2Q 2015 the average FS rate for all building classes was $32.83 per sf, $3.62 per sf higher than the average FS rate in 2Q 2014.

The Austin office market continues to operate in peak conditions. Office buildings are selling at historic prices, available spaces are quoting historic lease rates and occupancy rates remains higher than ever before. New construction continues to dominate the skyline, as many buildings are spoken for, prior to their respective completions.

Austin Office 2Q 2015
Submarket Inventory
(SF)
Overall
Vacancy
Rate
Under
Construction
(SF)
YTD Direct
Net
Absorption
(SF)
YTD Overall
Net
Absorption
(SF)
Direct Wtd.
Avg. All
Class Gross
Rental Rate*
CBD 9,256,594 7.3% 692,404 411,162 417,214 $47.80
Suburbs 36,097,250 10.4% 2,295,420 670,012 845,489 $34.20
Total 45,623,844 9.7% 2,987,824 1,081,174 1,262,703 $36.41


*Rental rates reflect asking $/PSF/year.

Click to view the full Austin Office Snapshot 2Q 2015 plus historical (PDF).

Breakthrough: Austin home sales top $1B 

(8/5/2015)

AUSTIN - Austin home sales volume topped $1 billion in the month of June — the highest collective amount ever recorded.

"(It) shows the amazing equity Austin homeowners have in the market and the powerful impact of real estate in Central Texas," said Barb Cooper, the 2015 president of the Austin Board of Realtors (ABoR).

Also, for the first time in two years, the number of sales topped 3,000. The 3,051 recorded transactions is more than a 10 percent increase from May.

The median home price in June stands at $272,250, 8 percent higher than June 2014. The average sales price is $333,866, 2 percent higher than a year ago. The average price dropped, however, compared to May when it was $348,201.

Here is a look at other highlights of the ABoR report for June transactions:

• Total volume: $1,018,625,166
• Homes sold: 3,051, up 5 percent from a year ago
• Average days on market: 42, three more than a year ago
• New single-family listings: 3,812, up 3 percent from a year ago
• Active single-family listings: 6,701, up 4 percent from a year ago

Read more at the Austin Business Journal.

Click to see the full report from the Austin Board of Realtors.

Colliers: Austin industrial report 2Q 2015 

(8/4/2015 9:00:00 AM)

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

Austin’s industrial market continues to progress as rental rates rise yet again in second quarter.

Vacancy dropped 140 basis points over the quarter from 10.2 percent to 8.8 percent, continuing to gradually decrease after a small increase last quarter.

Austin’s industrial pipeline had 572,705 sf of projects underway at the end of second quarter, the majority of which are in the Southeast submarket and are scheduled to deliver in 3Q 2015.

Austin’s industrial market posted 933,552 sf of positive net absorption in second quarter, which is the largest amount of absorption ever recorded in the Austin metro area, according to CoStar.

Austin Industrial Market Summary
Market* Rentable
Area
(SF)
Total
Vacant
(SF)
Total
Vacancy
Rate
2Q 2015
Net Absorp.
(SF)
1Q 2015
Net Absorp.
(SF)
North 13,495,226 1,117,463 8.3% 111,863 39,268
Southeast 10,086,277 850,583 8.4% 113,421 -319,327
Northeast 7,610,416 824,593 10.8% 369,357 38,253
East 3,748,225 196,190 5.2% 2,407 -20,038
Northwest 2,663,637 194,601 7.3% 21,600 -23,978
Round Rock 2,435,596 308,767 12.7% 12,928 13,946
Austin total** 48,505,277 4,248,250 8.8% 933,552 73,539


*Market ranked by rentable area.

**Total includes all submarkets of the Austin area.

Click to see the full Colliers Austin Industrial 2Q 2015 Report (PDF).

Don't miss out! Austin NewsTalk, Austin Market Research

Austin apartment market booms, still no relief for renters 

(8/4/2015)

AUSTIN - The Austin area’s apartment market continues to boom, fueled by the region’s population growth and a healthy 3.5 percent job growth rate. While the new supply of apartments has made a dent in the occupancy rate, rents are still climbing.

The strong demand for rental housing is an indicator of the strength of Austin’s economy, which continues to draw highly paid workers from other regions.

Rents across the five-county region — stretching from Georgetown to San Marcos — rose 6.6 percent from a year ago, to an average of $1,172, according to Capitol Market Research, an Austin-based real estate consulting firm.

Experts say some renters who work in Austin are choosing to search for lower rents in suburbs like Kyle and Buda to the south, and Georgetown and Leander to the north.

According to Zumper, a nationwide apartment rental website, in June alone, the median rent for a one-bedroom apartment in Austin’s city limits rose 3.7 percent, to $1,130, while two-bedroom units saw rents rise 5 percent, to $1,480.

Read more at the Austin American-Statesman.

Click Austin NewsTalk Texas and Austin Market Research.

LiveOps 'cloud' moving HQ, hiring 155 in Cedar Park 

(8/4/2015)

CEDAR PARK - LiveOps, a cloud-based customer call center company, has announced that it will relocate its corporate headquarters from its current home in Redwood City, California.

The company is moving into a new 25,000-sf facility and expects to hire 155 people in the next three years. It also plans to open a satellite office for engineering and operations staff in Silicon Valley.

LiveOps will move its 80 employees from the Redwood City location to the new headquarters once the Cedar Park facility — about 30 minutes north of Austin — is completed.

Read more at the Austin Business Journal.

Click Austin NewsTalk and Austin Market Research.

Austin: Grove Apartments to plant 156 units 

(8/3/2015)

AUSTIN - Construction has started on the 156-unit Grove Apartments at 3707 Manchaca Rd. in southeast Austin.

The 18-acre property is located at the corner of Grove Blvd. and Montopolis Dr. just south of East Riverside Dr.

The luxury, Class A apartment project will include three-story stone and stucco exteriors with views of the downtown Austin skyline.

The Grove Apartments will offer one- and two-bedroom units ranging from 679 to 947 sf.

The project is scheduled to begin leasing in first quarter 2016.

Read more at PRNewswire.

See Austin NewsTalk and Austin Market Research.

Leander: higher education penciled in for summer 2018 

(7/29/2015)

LEANDER - The 100-acre parcel of land for the Austin Community College (ACC) Leander campus near Toll 183A and Hero Way has sat undeveloped since 2010 when it was purchased, but ACC’s plans for the campus are now moving forward.

"ACC Leander will open in summer 2018 and will have an initial capacity for about 2,000 students, relieving the overcrowded Cypress Creek campus in Cedar Park," ACC board Vice Chairman Allen Kaplan said.

More than 5,000 students attend the Cypress Creek campus, which has a capacity of about 3,400.

In fall 2010, there were 1,383 Leander residents attending ACC classes; in fall 2014, there were 1,413.

The new campus will have a library, media center, computer labs and multipurpose rooms.

Read more at Community Impact Newspaper.

Click Austin NewsTalk and Austin Market Research for free data and link to your own website or blog.

Austin: Block 71 redevelopment up for grabs 

(7/29/2015)

AUSTIN - The University of Texas System is inviting developers to come up with concepts for transforming an entire block in the heart of downtown Austin.

The tract available for redevelopment, known as Block 71, is bounded by West Seventh, Colorado, West Sixth and Lavaca streets.

The system says the redevelopment could include residential units, offices, shops and restaurants.

The system will no longer need the 1.6-acre parcel — where it has two office buildings, four garages and an open-air plaza — because it is building a $102 million headquarters on the north side of West Seventh St., between Lavaca and Colorado streets.

The system’s nine-story headquarters building is expected to be completed in summer 2017. It will accommodate about 550 employees.

Read more at the Austin American-Statesman.

Austin-Bergstrom lands second nonstop European flight 

(7/29/2015)

AUSTIN - Austin-Bergstrom International Airport (AUS) is set to get its second nonstop route to Europe.

Next summer, Frankfurt, Germany-based Condor Airlines will begin flying to Frankfurt International Airport (FRA). The seasonal flights are scheduled to operate on Mondays and Thursdays from June 27, 2016 through September 1, 2016.

“I am pleased to welcome Condor to Austin-Bergstrom International Airport next summer with a new nonstop to Frankfurt, Germany,” said Austin mayor Steve Adler. “New options for air service bring new business, jobs and tourism to Austin."

In March 2014, the airport launched its first nonstop European route to London on a daily British Airways flight.

Read more at Globe St.

Click Austin NewsTalk and Austin Market Research for free data and link to your own website or blog.

Progressive 'Flos' 241 jobs to Austin 

(7/29/2015)

AUSTIN - Progressive Corp. plans to hire 241 workers for an Austin contact center by the end of the year.

The Ohio company plans to fill positions for claims adjusters and sales representatives.

The center, which opened in 2004, employs about 1,300 workers.

Read more at the Austin Business Journal.

Click Austin NewsTalk and Austin Market Research for free data and link to your own website or blog.

50,000-SF Mustang Creek Industrial Park to Taylor 

(7/28/2015 8:00:00 AM)

TAYLOR - The Taylor Economic Development Corporation (TEDC) has broken ground for the construction of its new 50,000-sf industrial/manufacturing facility in Mustang Creek Industrial Park.

The building will be available for occupancy before the end of 2015.

TEDC plans to build a total of three buildings of this size and fill them within the next 60 months.

Read more from Texas Real Estate Business.

For more information on land grant incentives, see the Build on Our Lot program from TEDC.

Fourth & brings residential and office space to East Austin 

(7/28/2015)

AUSTIN - A 130,000-sf residential condo and commercial project — named Fourth & — will be built at Fourth and Chicon streets in a flourishing area of East Austin.

Rance Clouse, founder of Capsa Ventures LLC, said demolition on an existing warehouse will begin by August 1. The project — 97 residential units and 42,000 sf of commercial space — is expected to be finished by fall 2016.

The residential units range from 512 sf to 1,465 sf. Prices will start at about $235,000 for a studio and top out around $600,000.

The commercial space could be purchased for offices or studios and some limited retails uses. A business could purchase up to 15,000 sf of contiguous space or as small as 750 sf. Prices for commercial space range from $330 to $365 per sf.

Amenities include reserved and guest parking, a dog wash, public showers along the adjacent bike trail, an amenity deck with outdoor grills and a conference room.

Read more at the Austin Business Journal.

Click Austin NewsTalk Texas and Austin Market Research.

June 2015: Austin-area home sales top 3,000 sales 

(7/24/2015)

AUSTIN - Austin-area home sales topped 3,000 sales for the first time since July 2013, increasing 5 percent year-over-year to 3,051 sales for the month of June, according to the Multiple Listing Service (MLS) report released July 21 by the Austin Board of Realtors (ABOR).

Mid-year statistics show that Austin-area home sales increased an average of 4 percent year-over-year to 13,917, putting 2015 on pace to potentially exceed 2014’s historical high in sales volume.

According to the report, the median price for Austin-area single-family homes increased 8 percent year-over-year to $272,250 in June 2015, while average price increased 2 percent to $333,866 during the same time frame.

Keeping with the upward trend over the last several months, less than three in ten single-family homes sold in the Austin area were priced below $200,000.

While new listings increased by 3 percent to 3,812 for June 2015, inventory held steady at 2.8 months, remaining well below the 6.5 month level the Real Estate Center at Texas A&M University estimates as a balanced housing market.

June 2015 Statistics include:

  • 3,051 – Single-family homes sold, 5 percent more than June 2014.
  • $272,250 – Median price for single-family homes, 8 percent more than June 2014.
  • $333,866 – Average price for single-family homes, 2 percent more than June 2014.
  • 42 – Average number of days single-family homes spent on the market, three days more than June 2014.
  • 3,812 – New single-family home listings on the market, 3 percent more than June 2014.
  • 6,701 – Active single-family home listings on the market, 4 percent more than June 2014.
  • 3,023 – Pending sales for single-family homes, 8 percent more than June 2014.
  • 2.8 – Months of inventory* of single-family homes, unchanged compared to June 2014.
  • $1,018,625,166 – Total dollar volume of single-family properties sold, 8 percent more than June 2014.


*The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

Source: ABOR

Click Austin NewsTalk Texas and Austin Market Research.

CBRE Austin Office Report 2Q 2015 

(7/23/2015)

AUSTIN - Even with the recent uptick to 11.9 percent, Austin’s office vacancy is the tightest amongst state major metros, according to CBRE's Austin Office Marketview 2Q 2015.

The Austin office market witnessed its 18th consecutive quarter of positive net absorption and finished at 489,183 sf. That was a 46,501 sf increase over 1Q 2015, and a year-over-year gain of 336,122 sf.

The 291,638 sf of absorption in the CBD was 152,402 sf more than 1Q 2015. At the end of 2Q 2015, the Austin market had over 2.2 million sf of office space under construction.

Austin’s office availability increased 50 basis points (bps) and ended the quarter at 15.5 percent.

Austin Office Market Statistics 2Q 2015
Market Rentable
Area
(SF)
Vacancy
Rate
(%)
Net
Absorption
(SF)
Avg. Direct Asking
Lease Rates
($/SF/YR)
Class A Class B
Northwest 13,158,731 10.3 200,957 32.74 27.45
Southwest 10,109,725 12.2 21,626 33.76 27.71
CBD 9,809,755 10.2 291,638 41.90 36.43
Far Northwest 4,110,579 15.6 -20,021 31.50 27.33
Totals 44,534,490 11.9 489,183 35.60 25.33


*Ranked by market rentable area.

**Totals are based on all submarkets. Only top four of the eight submarkets are shown.

Source: CBRE

Full report? See Austin Office MarketView 2Q 2015 (PDF).

Grove of houses coming to Austin, bearing fruit! 

(7/21/2015 9:55:00 AM)

AUSTIN - A residential project is coming with an unusual twist — 38 'farmhouse-inspired' homes clustered in an East Austin development that will include an orchard that in a few years will bear peaches and pears that residents can harvest and enjoy year-round.

The $14 million project, under construction at Pleasant Valley Dr. and Webberville Rd., next to LifeWorks, has a nostalgic theme that hearkens back to a time when the world was simpler.

The model home is complete, and more than a dozen more houses will be completed by year-end. So far, 17 houses have been presold and the entire project is due to be complete in 2016.

Prices for the three-story units range from $330,000 to $450,000.

Read more at the Austin American-Statesman.

Click Austin NewsTalk and Austin Market Research for free data and link to your own website or blog.

ALN Austin apartment review June 2015 

(7/20/2015 7:45:00 AM)

AUSTIN - ALN Apartment Data has released June 2015 apartment occupancy and effective rent data for apartments.

Austin Market Review
Austin Market General Overview
June
2015
Annual
Chg.
Occupancy rate 91.4 0%
Units added 5,596  
Units absorbed (annual) 7,905  
Average size (SF) 854 0.5%
Asking rent $1,140 7.3%
Asking rent per SF $1.33 6.8%
Effective rent $1,133 7.3%
Effective rent per SF $1.32 6.8%
Offering concessions 11% -5.6%
Avg. concession package 4.7% -0.8%


Click ALN Apartment data covering Texas and other states. Easy data here with one click.

Click: Austin NewsTalk, Austin Market Research

Pearson Testing flunks out, hundreds laid off in Austin 

(7/20/2015 7:30:00 AM)

AUSTIN - Long the largest provider of testing services in Texas, education giant Pearson confirmed that it will lay off more than 200 Texas employees after the state chose another vendor for the majority of its new standardized testing contract.

Company officials confirmed that it would be laying off a total of 270 employees in its North American operations, with 208 of the layoffs coming in the Austin area as the company combines its four regional locations.

In May, the Texas Education Agency announced Pearson Education would no longer be the exclusive standardized testing vendor, a position the British mega-company had held for more than three decades.

Pearson had held the contract since 1980, but lost out on a four-year, $280 million contract in May to New Jersey-based Educational Testing Services.

Pearson will continue to have a presence in Texas and will remain home to much of the company’s research and development operations, and employees who include education researchers, scientists and former teachers.

Read more at the Austin American-Statesman.

See Austin NewsTalk Texas and Austin Market Research.

92-Unit Fairfield underway on Cabela's Dr. in Buda 

(7/20/2015)

BUDA - A 92-unit Fairfield Inn & Suites has broken ground and will open at 1240 Cabela’s Dr. during summer 2016.

A Marriott product, the Fairfield Inn & Suites will be four stories tall and comprise amenities such as an indoor swimming pool, indoor hot tub and meeting space.

Prayes Majmudar — principal investor with Seva Hospitality, the Dallas-based company that owns the hotel — said Buda was chosen as the site of Seva Hospitality’s newest hotel because of its strong leisure economy.

City planners created a planned unit development, or PUD, where the hotel will be built. An additional seven acres of the PUD is available to be developed into retail, commercial and office space.

Read more at Community Impact Newspaper.

Click: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

North Austin: General Motors buys 303,000-SF office building 

(7/17/2015 10:10:00 AM)

AUSTIN - General Motors has purchased a 303,000-sf office building to expand its IT Innovation Center — a business division the automaker created in 2012 to bring its IT functions back in house.

The purchase of the 302,604-sf building at 13201 McCallen Pass was announced by the seller, Karlin Real Estate based in Los Angeles.  

Currently, there are four GM Innovation Centers across the country — in Michigan, Georgia, Arizona and Austin.

GM already leases 320,000 sf nearby at 717 E. Parmer Lane. That building is owned by an entity formed by Gladstone Commercial Corp., which purchased the property from Karlin in 2013 and immediately leased it to GM.

When GM announced the opening of the Innovation Center, company officials said about 500 employees would be hired in Austin. It would seem that number could grow with the new acquisition. On its website GM shows 75 jobs available in Austin.

A year ago, Karlin announced its partnership with Trammell Crow to develop the rest of the land as Parmer, a mixed-use, master-planned commercial and residential community that would be built over multiple years. Generally the area is east of I-35 between Howard and Parmer lanes.

The first element of the new build space is Parmer 3.2, a 192,000-sf office building, which is nearing completion. That property has not been leased as yet.

Mark Emerick and John Barksdale of CBRE Group Inc. in Austin were at the center of the transaction.

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

See Austin NewsTalk Texas and Austin Market Research.

University of Texas 235,000-SF Dobie Center sells 

(7/17/2015 9:30:00 AM)

AUSTIN - The 27-story Dobie Center near the University of Texas campus has been sold by The Carlton Group.

The 234,500 sf, 975-bed Class A student housing tower was purchased for a reported $74 million, according to Globe St.com.

Included was a 90,000-sf, two-story retail mall and a six-story 668-space parking garage.

The building at 2021 Guadalupe St. was purchased in December 2005 and has made at least $6 million in upgrades during the ownership cycle.

The property is across the street from the UT campus, and is opposite the new 458,000-sf McComb’s Business School, currently under construction.

Regus Business Centers is also opening a brand new 13,000-sf office suite facility within the center; it will cater to athletic and technology companies who do business with the university.

Fowler Property Acquisitions was the buyer.

Sources:  Carltongroup.com, GlobeSt.com and the Austin Business Journal.

Austin: 58-story The Independent sky high in reservations 

(7/16/2015 8:30:00 AM)

AUSTIN - Interest is high for The Independent, the 58-story, 370-unit tower under construction in downtown Austin.

Constructive Ventures and Aspen Heights announced that more than 90 percent of the units have been reserved, setting a new record for most number of units reserved in a one-week period in downtown Austin.

Located at the northeast corner of West 3rd St. and West Ave. in downtown Austin, the building will continue to take reservations for its waitlist.

The condo tower — aimed for completion in 2018 — will offer floor plans sized from 675 to 3,485 sf and be priced from the mid-$300,000s to more than $3 million.

The Independent condo tower planned at the 1.7-acre site and set to rise 685 feet will be the tallest structure in Austin and the tallest residential building west of the Mississippi River. It is aiming for completion in 2018.

Read more at Globe St and The Wall Street Journal.

Click on Austin-Round Rock Market Research, Texas property sold.

Colliers 2Q 2015: Austin leads nation in startups 

(7/16/2015 8:00:00 AM)

AUSTIN - It is the Texas capital and tech center, and not Silicon Valley, that is home to the greatest number of startup businesses, 180 all told. So says Colliers International, citing the annual Kaufmann Index report, in its second-quarter roundup on the city’s office sector.

The city’s technology job base has grown by 17.8 percent since 2011, thanks in part to eastward migration by California-based companies. Austin’s unemployment rate trended below both the state and national averages a year ago at 4.1 percent, and is now even lower at 3.1 percent.

All of the positive economic news is belied somewhat by the fact that Austin’s office vacancy citywide has crept up over the past few quarters. It increased 20 basis points from 10.2 percent in 1Q to 10.4 percent this past quarter, although CBD vacancy is trending in the opposite direction, dropping 60 basis points from 8.2 to 7.6 percent.

Overall, suburban vacancy increased 30 basis points from 10.7 percent to 11.0 percent in 2Q, due mainly to a 100-basis points increase in Class A suburban office vacancy.

Colliers is predicting a further vacancy increase and decrease in net absorption as more new space delivers in the year’s second half, although it also expects the pace of new construction to slow down.

Six buildings totaling 730,000 sf were delivered in 2Q, and another 2.2 million sf of office is now under construction.

The city’s average rental rate increased by 3.7 percent from $28.16 per sf to $29.20 over the course of 2Q.

The average CBD Class A rental rate decreased from $42.64 per sf to $41.58, and the average suburban Class A rental rate increased from $31.54 per sf in 1Q to $32.87.

Read more at Globe St.

Click to see Colliers Austin Office Research Report 2Q 2015 (PDF).

For other Austin office quarterly reports, click Austin Market Research.

Fashion Forms 90,000-SF runway to Austin  

(7/16/2015 6:35:00 AM)

AUSTIN - Fashion Forms will move into a mix of office and warehouse space totaling 90,000 sf at McNeil 1, located at 12317 Technology Blvd.

Fashion Forms — a producer of specialty bras and accessories in the U.S., Canada and Europe — is relocating to northwest Austin from Ventura, Calif. in August.

The company holds 14 patents and 18 trademarks for designs and Fashion Forms products are sold in more than 9,000 stores worldwide.

One of Fashion Forms trademarks includes the "Original Water Push Up Bra."

McNeil 1 is now 79 percent leased.

Read more from the Austin Business Journal.

Click Austin NewsTalk and Austin Market Research for free data and link to your own website or blog.

Round Rock: Long View buys 160,000-SF industrial bldgs.  

(7/16/2015 5:34:00 AM)

ROUND ROCK - Five freestanding tilt-wall industrial buildings in the Forest Commons Business Park at 3912-3920 Gattis School Rd. have been sold.

The combined 160,830-sf facility is 100 percent leased to a variety of industrial and flex office tenants.

Long View Equity Partners acquired the assets from HOWMAT Development LP and plans to hold the property long-term.

Read more at Globe St.

Be sure to link (or click) Austin Market Research and Austin NewsTalk to your own website or blog.

125-Room Austin Hilton hotel to ring the bell in 2017 

(7/15/2015)

AUSTIN - Developers are preparing to start construction on a new Homewood Suites by Hilton hotel project along northwest Beltway 8, just east of Fallbrook Dr.

The hotel will be developed and managed by the Houston-based New Horizons Hospitality and is expected to open January 1, 2017.

The four-story, all-suite hotel will feature 125 rooms, New Horizons owner Aly Valiani said.

Rooms will be designed for extended stay guests and come equipped with full kitchens, dining areas and separate sleeping areas.

Other services will include complimentary breakfasts every day of the week and complimentary dinners Mondays through Thursdays.

Read more at Community Impact Newspaper.

Click Austin NewsTalk and Austin Market Research to see what's happening....it's free and no 'wait time' for ads!

ABoR: Austin area home sales June 2015 

(7/14/2015 8:00:00 AM)

AUSTIN - The Austin Board of Realtors has released home sales facts for June 2015.

Quick facts include:

  • The median price of existing single-family homes increased to $270,000, up 0.6 percent from May 2015.
  • Existing single-family home sales increased 8.1 percent from May 2015 for a June 2015 total of 2,599 sold units.
  • Condos increased in price to $225,500, up 2.5 percent from May 2015.
  • Existing condo sales increased 5.0 percent in June 2015 from May 2015 for a total of 292 sold units.

Austin Region Sales and Price Activity by Units Sold
MLS Wide Units Sold
  June 15
Median Price
  June 15
Price Chg.
June 2014
Sale Chg.
June 2014
ACTRIS* (single-
family)
2,599 $270,000 8.20% -1.60%
ACTRIS (condo) 292 $225,500 10.00% 5.00%
Region Cities**        
Austin 1,053 $348,900 7.00% -3.30%
Round Rock 283 $230,000 5.50% -1.70%
Georgetown 168 $264,725 5.50% -2.30%
Pflugerville 156 $216,600 16.50% 23.80%
Leander 124 $215,000 10.80% 7.80%
Cedar Park 118  $278,500 11.40% -28.50%
Kyle 75 $187,450 13.60% 4.20%
Hutto 60 $175,750 9.80% -4.80%


*Austin/Central Texas Realty Information Service
**Region Cities' data includes single-family only and represents eight select cities that sold 60 or more units during June 2015.

See the full report from the Austin Board of Realtors.

Click: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

Parking lots to 300 apartments at Austin Highland Mall  

(7/14/2015)

AUSTIN - Plans to remake the vast, empty parking lots surrounding the former Highland Mall into a bustling mixed-use project will start to take shape this fall when work begins on 300 new apartments.

The apartment complex will be on the south side of the property, which is now owned by Austin Community College (ACC). It should be complete by 2017, according to ACC and its development partner RedLeaf Properties.

Since taking over the mall, ACC has made a number of improvements, including transforming an old JCPenney site into classrooms and labs.

The mall’s last few remaining retail tenants — a handful of small shops and restaurants — recently moved out to make way for future phases of construction.

The buildings will be four and five stories tall, and will feature about 5,000 sf of ground-floor retail space aimed at locally owned businesses. The retail space will help camouflage a parking garage for residents.

Amenities will include a clubhouse with a co-working space, bike storage rooms and a host of eco-friendly features, such as instant hot water and energy-efficient appliances and windows.

Read more at the Austin American-Statesman.

Click Austin NewsTalk and Austin Market Research for free data and link to your own website or blog.

Phase II on Southwest Parkway offices underway 

(7/14/2015)

AUSTIN - The second phase of a corporate office complex in Southwest Austin is now in development.

Phase II of 5301 Southwest Parkway is designed to include a new 125,000-sf office building, an expansion of the campus’ parking garage and a renovation of the existing 164,700-sf office building.

The features and amenities coming to the phase II development include an arcade, racquetball, gaming, golf simulator, napping pods, on-site concierge and a gym.

Connecting both phases is an outdoor landscape component with amenities where food trucks can park or tenants can hold impromptu meetings in a covered porch area or balcony.

CBRE in Austin will be leasing the office space in Phase II of 5301 Southwest Parkway. Tenants in the Phase I include Yeti Coolers and Textron Systems.

Read more at Community Impact Newspaper.

Feel free to link Austin-Round Rock Market Research and Austin-Round Rock NewsTalk to your own website or blog with The Real Estate Center at Texas A&M University as the source.

Austin submarket vacancy/rent comparisons 1Q 2015 

(7/14/2015)

AUSTIN - Construction was completed on 2,390 multifamily units in the last three months, 15.5 percent more deliveries than the preceding quarter, according to Berkadia’s Austin Multifamily first quarter 2015 report.

Rental demand heightened with 2,780 newly occupied apartments in the first quarter, up from 1,190 units absorbed in the preceding three months. A combined 8,760 units were absorbed in the last year.

Vacancy lowered 20 basis points to 4.8 percent in the first quarter. The decrease was part of a 30-basis-point decline in the last year.

At $1,101 per month in March, average asking rent was up 1.3 percent since December. Rents increased 4.8 percent year over year.

Austin Vacancy & Rent Comparison
Submarkets* Vacancy Average Rent
1Q 2015 1Q 2014 1Q 2015 1Q 2014
Central 6.1% 4.8% $2,025 $2,002
West 6.9% 6.3% $1,370 $1,351
Travis County West 5.4% 5.5% $1,229 $1,191
Far South 5.1% 4.8% $1,146 $1,093
Northwest 5.6% 7.0% $1,144 $1,109
Far Northwest 6.3% 4.6% $1,117 $1,056
Travis County East 5.0% 4.6% $1,084 $1,042
East 5.1% 6.2% $1,068 $960
Hwy 183/Cedar Park
/Leander
5.9% 5.0% $1,034 $981
Southeast 5.8% 4.9% $1,005 $901
Hays County/Other 4.8% 6.2% $1,000 $986
Total** 4.8% 5.1% $1,101 $1,050


*Listed submarkets include those which have an average rent over $1,000 in 1Q 2015 and are sorted by average rent.
**Total represents all 18 submarkets in Austin.

Click Berkadia Austin Multifamily 1Q 2015 (PDF).

Source: Berkadia

Click Austin NewsTalk, Austin Market Research.

260-Room Embassy Suites sold in East Austin 

(7/10/2015)

AUSTIN - Stonebridge Cos. has acquired the Embassy Suites by Hilton Austin Central hotel at 5901 IH-35 from FelCor Lodging Trust.

The five-story, 260-room hotel was constructed in 1983 on 4.92 acres in the East Austin submarket.

An all-suite hotel, Embassy Suites by Hilton Austin Central offers 10,000 sf of meeting space in close proximity to downtown Austin as well as the University of Texas at Austin.

Stonebridge plans to implement a multi-million dollar renovation at the hotel.

Read more at CoStar Group.

Be sure to link Austin NewsTalk and Austin Market Research to your own website or blog.

JLL: Austin office stats 2Q 2015 

(7/9/2015 2:10:00 PM)

AUSTIN - JLL has released second quarter 2015 Austin Office Insight report.

Construction preleasing is holding steady in Austin with lack of available large blocks.

New inventory will continue to deliver in Austin steadily through 2015 and into 2Q 2016. Of the 740,000 sf delivered, 48.0 percent has been leased.

Tenants leasing space downtown have noticed operating expenses increase rapidly in recent years. The main contributor to this increase is a result of the real estate tax portion of operating expenses.

Click the full Austin Office Stats and Insight 2Q 2015 (PDF).

Click: Austin Market Research, Austin NewsTalk

From melodies to offices: Austin Music Hall to be demolished 

(7/9/2015)

AUSTIN - The Austin Music Hall — a 43,000-sf entertainment venue at 208 Nueces St. — is to be demolished beginning in January to make way for a 28-story office building.

Construction of the 349,000-sf building is scheduled to start in early 2016 and deliver at the end of 2017.

The predominantly glass tower will include ground-floor retail, outdoor terraces overlooking Shoal Creek and three floors of creative office space that feature 28-foot ceilings and loft-like spaces.

Traditional offices will cover ten floors. The rest of the structure will include parking along with a 300-stall bike storage facility.

Across the street from the Austin Music Hall on the former site of the Green Water Treatment Plant, Trammell Crow is building a 32-story, 500,000-sf tower, with 200,000 sf being the Austin home of Google Inc.

Read more at the Austin Business Journal.

Two Austin retail centers in Circle C Ranch bring $45M 

(7/7/2015 6:45:00 AM)

AUSTIN - Whitestone REIT has acquired Parkside Village North and Parkside Village South in Circle C Ranch in Southwest Austin for $45 million.

The neighborhood retail property is anchored by a 34,000-sf Alamo Drafthouse Cinema.

NXNW opened a large restaurant nearby, as well. Other tenants include ZPizza, BurgerFi, TCBY, Chase Bank and Austin Diagnostic Clinic.

The two Parkside properties are 100 percent leased to 30 tenants.

Read more at the Austin Business Journal.

Be sure to link Austin NewsTalk and Austin Market Research to your own website or blog.

Click Retail May 2015 report from Transwestern.

TAR: Austin condo and townhome sales first half 2015 

(7/3/2015 10:08:00 AM)

AUSTIN-ROUND ROCK - Condominium and townhome sales slowed in Texas’s major metro areas in first half 2015, according to the 2015 Texas Condominium Mid-Year Sales Report.

In Austin, 1,178 condos were sold between January and May 2015, a 12 percent decrease from the same period in 2014.

Median price increased to $222,000, a 4 percent gain from the year prior. New listings rose 2 percent to 1,904 listings, whereas active listings jumped 14 percent to 623 listings, and pending sales dropped 4 percent to 1,496 sales from January to May.

Finally, average days on the market fell to 43 days, an 8 percent decrease from the year prior.

Austin Condo & Townhome Overview 2015
  Sales Median Price
February 205 $196,580
March 260 $226,250
April 274 $230,000
May 299 $231,000


For the full report, see 2015 Texas Condo Mid-Year Sales Report.

Be sure to link Austin NewsTalk and Austin Market Research to your own website or blog.

Recruitment begins: Austin’s UT Dell Medical School  

(7/3/2015 6:59:00 AM)

AUSTIN - With 1,000 applications and more coming in daily for just 50 seats at the University of Texas’ Dell Medical School, a preliminary stamp of approval came just in time.

In a celebration overlooking the skeletons of four new buildings, UT officials announced that the medical school has received preliminary accreditation, a milestone that will allow the school to start recruiting students.

The school’s first four-year class of medical students is scheduled to enter in summer 2016, and just before the students graduate in 2020, officials anticipate the school receiving full accreditation.

“We may get 3,000 applications” before the cut-off later this year, Dean Clay Johnston said in an interview.

Halfway to that goal, the school must pass another hurdle to earn provisional accreditation.

Read more at the Austin American-Statesman.

Be sure to link Austin Market Research and Austin NewsTalk to your own website or blog.

By the numbers: Austin unemployment lowest since 2001 

(7/2/2015 10:00:00 AM)

AUSTIN - Over the past 12 months, Austin employers have added roughly 32,200 jobs, growing its workforce by 3.5 percent and pushing the area's unemployment rate to its lowest level since 2001, according to Greater Austin Chamber of Commerce's latest Economic Indicators report.

Concurrently, the Austin area's number of unemployed workers has declined by slightly more than 10,000 between May 2014 and May 2015, cutting the overall number of unemployed workers in the region by more than 23 percent during that period.

Austin's 3.5 percent workforce growth rate between May 2014 and May 2015 makes it the eighth-fastest growing metro area in the nation for jobs.

The report also confirms that Austin is entering a new era of record-low unemployment. The seasonally adjusted unemployment rates is currently hovering around 3.2 percent, according to the report, the lowest it has been since February 2001.

Fastest Growing Among Top 40 U.S. Metro Areas
  Nonfarm payroll
jobs May 2015
May 2014-2015 Rank
Difference % Chg.
San Jose MSA 1,057,400 57,100 5.7 1
San Francisco MDiv 1,046,800 42,500 4.2 2
Riverside MSA 1,332,200 51,800 4.0 3
Orlando MSA 1,153,200 44,000 4.0 4
Salt Lake City MSA 678,200 25,400 3.9 5
Dallas MDiv 2,372,600 86,000 3.8 6
Seattle MDiv 1,599,000 56,000 3.6 7
Austin MSA 947,400 32,200 3.5 8
Fort Lauderdale MDiv 802,100 26,700 3.4 9
Anaheim MDiv 1,548,800 50,700 3.4 10


Read more at the Austin Business Journal and the Chamber’s Economic Indicators report.

Invenio Solutions to hire 100 employees in Austin 

(7/2/2015)

AUSTIN - Invenio Solutions — an Austin-based company that handles business-to-business lead generation and sales activities for major brands such as Dell, American Express and AT&T — has announced plans to add more than 100 employees to its Austin headquarters by the end of August.

The hires will bring the company’s headcount to more than 600, with new positions mostly being in Invenio’s sales department.

Invenio Solutions — expected to generate $50 million in revenue this year — is located in North Austin near Braker Lane and Metric Blvd. in a building that houses about 300 of its employees.

Read more at the Austin Business Journal.

Be sure to link Austin NewsTalk and Austin Market Research to your own website or blog.

The Backyard, Terraces buzzing to Bee Cave 

(7/2/2015)

BEE CAVE - The Terrace and The Backyard projects on Bee Cave Parkway in Bee Cave are currently being developed by International Development Management.

When they open in 2017, the condominiums will be “high-end” units that include pedestrian access to the Hill Country Galleria and will be sold in the high $300-per-sf range.

The 120-unit Terraces project will also include 250,000 sf of office space and a 6,500-sf restaurant.

The Backyard, a 35-acre project, will include a 125-room hotel similar to the vintage prototype built at The Domain in Northwest Austin, along with 335,000 sf of office space, 16,000 sf of meeting space with a restaurant, four sound stages, a 3,410-person capacity amphitheater and a 500-person capacity private party venue.

The developers are planning to add amenities to the city including four lighted tennis courts, a splash pad at Central Park and a double right-turn lane from Bee Cave Parkway onto RR 620.

Groundbreaking on the projects is set for the end of this year or early 2016.

Read more at Community Impact Newspaper.

tag: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

Austin's 101-Unit Terrain “lands” sale 

(7/1/2015 8:00:00 AM)

AUSTIN - Terrain, a 101-unit apartment community in the South Austin submarket, has been sold at 5112 South 1st St.

The property has one- and two-bedroom units ranging from 504 to 850 sf. Rents range from $975 to $1,295.

Terrain is situated along Williamson Creek, near the intersection of West Stassney Lane, approximately four miles southwest of downtown Austin.

Renovated in 2013, the 95 percent-leased asset also provides nearby access to St. Edward’s University and South Austin’s recreational/entertainment amenities, as well as major thoroughfares such as I-35, Hwy. 71 and Mopac Expressway (Loop 1).

HFF marketed the asset on behalf of FBZ Williamson Creek.

Read more at Globe St.

Be sure to link Austin Market Research and Austin NewsTalk to your own website or blog.

Upscale Traditions and Heritage housing to NE Round Rock 

(7/1/2015)

ROUND ROCK - A new residential community coming to Round Rock is the next step in the development of the city’s northeast corridor and reflects some of the regional real estate trends in high-end and senior housing.

Traditions at Vizcaya, an upscale housing development, and Heritage at Vizcaya, an adjacent retirement community, will include about 1,200 units at build-out.

Traditions at Vizcaya homes have an average-listing price of about $315,000 and amenities include a pool, pavilion, “gourmet kitchens,” and master bedroom suites.

Floor plans range from 1,830–4,063 sf.

Both Traditions and Heritage at Vizcaya are open for sales, although the homes are still under construction.

Read more at Community Impact Newspaper.

tag: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk housing

Two 60,000-SF Austin offices snatched up 

(7/1/2015)

AUSTIN - Valor Capital Partners has purchased two Austin office buildings the Wells Fargo Building at 2028 E. Ben White Blvd. and Centre Creek Plaza at 1812 Centre Creek Dr.

Though the Class B properties are located in different submarkets — southeast and northeast — they are similar in size and value.

The Wells Fargo Building, built in 1985 and located near the high volume intersection of I-35 and US 71, encompasses about 60,720 sf of office space on about 3.5 acres.

Centre Creek Plaza, also built in 1985, contains about 60,295 sf, and is located north of US 183 and east of I-35. The building sits on about 3.8 acres.

The Wells Fargo building is currently valued at $6,561,721 by the Travis Central Appraisal District. Centre Creek Plaza is valued at $6,059,612.

Read more at the Austin Business Journal.

Be sure to link Austin Market Research and Austin NewsTalk to your own website or blog.

Land under 12-acre Top Golf in Austin sold 

(6/30/2015)

AUSTIN - Top Golf, the upscale driving range and entertainment venue in North Austin, has a new landlord — Houston-based OrangeStone Capital.

The 12-acre property includes a 65,000-sf clubhouse and 102 hitting bays. Top Golf — headquartered in Dallas — has a 15-year lease with three five-year extensions.

The Travis Central Appraisal District tabbed the value in 2015 at a little more than $14 million.

OrangeStone Principal Hussain Nathoo said the value is in redevelopment potential of about 2.7 million sf that could eventually be built there.

Read more at the Austin Business Journal.

Be sure to link Austin NewsTalk and Austin Market Research to your own website or blog.

Austin: 112-unit Lantana Trace sold 

(6/30/2015)

AUSTIN - The 112-unit Lantana Trace, located at 1830 Rundberg Lane West and 9315 Northgate Blvd., has been sold.

The north Austin property was 97 percent occupied at the time of the sale. The buyer was ACA Lantana Trace LLC of Austin.

Built in 1972 on two separate parcels of land totaling 2.98 acres, the property features 19 studio units, 87 one-bedroom units, and six two-bedroom units.

Director Forrest Bass of the Berkadia Austin office negotiated the transaction.

"The North submarket in Austin continues to see a lot of transaction activity and strong economic fundamental,” Bass said. “We have closed four other recent multifamily transactions in the area, and just went to market with another large multifamily asset.”

Vacancy in the Austin metro lowered 20 basis points to 4.8 percent in first quarter 2015. At $1,101 per month in March, average asking rent was up 1.3 percent since December.

Read more at Globe St.

Be sure to link Austin Market Research and Austin NewsTalk to your own website or blog.

Austin 32-story 'Proper' introduction 

(6/29/2015)

AUSTIN - Downtown Austin’s newest condo project — located on part of the former Green Water Treatment Plant site — is looking to make a Proper introduction.

Austin Proper, a 32-story tower that will feature 100 luxury residences atop a 243-room high-end hotel, has started a “priority interest list” for prospective condo owners.

Austin Proper will feature 100 condos and a 243-room hotel.

One-, two- and three-bedroom condos will be available, ranging in size from 850 to 2,800 sf, as well as one- and two-story penthouses as large as 6,000 sf. Prices will range from the mid-$500,000s to several million dollars.

The hotel will be part of the fledgling Proper Hospitality brand, which launched in January.

The high-rise is due to come online by 2017.

Read more at the Austin American-Statesman.

Be sure to link Austin NewsTalk and Austin Market Research to your own website or blog.

Austin: 301-unit Elements at Mueller sold 

(6/26/2015 9:00:00 AM)

AUSTIN - Elements at Mueller, a 301-unit apartment community located at 4646 Mueller Blvd., has been acquired by Houston-based Sun Holdings Group.

Elements at Mueller was constructed in 2014 within the Mueller Redevelopment, a 711-acre mixed-use development comprised of 4 million sf of office and retail space and more than 5,700 homes.

The mid-rise wrap-style community is 95 percent occupied.

The site is home to Dell Children’s Medical Center of Central Texas, The Thinkery Children’s Museum, a recently developed 83,000-sf H-E-B grocery store and a 400,000-sf shopping center.

A proposed 1.2 million-sf mixed-use project dubbed Aldrich Street is also planned for the site.

Source: CoStar Group

Be sure to link Austin NewsTalk and Austin Market Research to your own website or blog.

Hitting the surf in Austin's 113-acre Nland Surf Park 

(6/26/2015 7:30:00 AM)

AUSTIN - The first inland surf park in North America is set to debut in Austin next spring. Nland Surf Park state-of-the-art 113-acre facility will be a “surfer’s playground.”

The revolutionary park will feature a lagoon approximately the size of nine football fields with 11 surfing areas and proprietary Wavegarden technology that will create one-foot, four-foot and six-foot waves.

The project scope includes building the main lagoon, building its proprietary equipment foundation and constructing a pier and boardwalks.

Read more at Globe St.

Be sure to link Austin Market Research and Austin NewsTalk to your own website or blog.

Or just keep checking back.

Belterra expansion by 90 acres near Nutty Brown in Austin  

(6/26/2015)

AUSTIN - Endeavor Real Estate Group along with Crescent Communities, the developer of Belterra, announced plans to develop 90 acres of commercial and residential property off Hwy. 290.  

Slated within the development — near the Nutty Brown Rd. and Belterra Dr. intersections — is more than 275,000 sf of shops, restaurants, office space, a hotel, senior housing and high-density single-family homes.

Construction of the mixed-use development will be built in phases — beginning early 2016 — and may take five to seven years.

Belterra, when complete, will have 2,000 homes.

Read more at Community Impact Newspaper.

Feel free to link Austin-Round Rock Market Research and Austin-Round Rock NewsTalk to your own website or blog.

UT Dell Seton Medical School debut 2016 in Austin  

(6/25/2015 7:30:00 AM)

AUSTIN - Construction on the 515,000-sf Dell Medical School campus — the first and only medical school in Austin — will be completed in May 2016.

The teaching hospital — inside what is known as the Medical District — will open in 2017 and will be called Dell Seton Medical Center at The University of Texas.

The facility will provide resources for those in need of care, including a trauma center, and will provide a resource for students who have advanced far enough in their training to gain hands-on patient experience.

Read more at Community Impact Newspaper.

tag: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

Medical Towers at Sawyers Ranch underway in Dripping Springs 

(6/25/2015)

DRIPPING SPRINGS - Medical Towers at Sawyer Ranch, a medical office building that will be located at the intersection of Hwy. 290 and Sawyer Ranch Rd., is underway.

The new three-story building will feature approximately 36,000 sf of office space on about four acres when it is completed summer 2016.

Medical Towers at Sawyer Ranch will be home to medical practices with varying specialties.

Tenants will include Austin Dermatology Associates, Dripping Springs Eye + Laser Center, Kethley Physical Therapy and Solutions Pharmacy.

Read more at Community Impact Newspaper.

Be sure to link Austin NewsTalk and Austin Market Research to your own website or blog.

Waterleaf drips to completion on 120,000-SF facility 

(6/25/2015)

AUSTIN - Waterleaf a four-building health care and medical campus is nearing completion. The property is being developed by b3 Commercial Management LLC and Hughes Capital Management.

The community of health services will feature 120,000 sf of space located at the intersection of Davis Lane and MoPac.

Construction began in October 2013 and the first building was completed in 2014.

Austin Root Canal Specialists, Brunson Dental, Texas Diabetes and Endocrinology and Texas Fertility Center/Austin IVF are open.

Flint Rock Oral & Maxillofacial Surgery, Prosthodontics of Texas and Westlake Dermatology & Cosmetic Surgery are slated to open in August.

Read more at Community Impact Newspaper.

Feel free to link Austin-Round Rock Market Research and Austin-Round Rock NewsTalk to your own website or blog.

Texas State Bobcats will roar in new facilities next year 

(6/25/2015)

SAN MARCOS - Texas State University will begin major construction projects in 2016 to address increasing enrollment in two fast-growing programs.

The Texas Legislature’s passage of a tuition revenue bond bill will provide the university with $67 million to go toward construction of a new $93 million engineering building at the San Marcos campus.

In Round Rock $48.6 million will go toward construction of a new $67 million health professions building.

The new health professions building will include 107,000 sf and will provide space for a 35 percent enrollment increase in health professions programs.

Read more at Community Impact Newspaper.

Feel free to link Austin-Round Rock Market Research and Austin-Round Rock NewsTalk to your own website or blog.

Austin: Timber up as Forest Park Medical Center to open 

(6/24/2015)

AUSTIN - Forest Park Medical Center — located southeast of the MoPac and SH 45 N interchange — is a new physician-owned hospital scheduled for opening for September 2015.

FPMC-Austin will have 46 beds, ten operating rooms, an emergency room, a lab, pharmacy and cafeteria.

The medical center was designed by the Neal Richards Group, which purchased roughly 55 acres surrounding the hospital to develop a mixed-use center similar to The Domain.

The hospital and adjoining 80,000-sf medical office building are the first piece.

Read more at Community Impact Newspaper.

Feel free to link Austin-Round Rock Market Research and Austin-Round Rock NewsTalk to your own website or blog.

What's up? Four acres sold near Austin International Airport 

(6/24/2015)

AUSTIN - Nearly four acres (3.858) has been sold at 3102 E. Hwy. 71. The property is just east of Austin Bergstrom International Airport.

The buyer, SIZ Hotel Management Group Inc., plans to immediately build a hotel and restaurant on the site.

Source: REOC Austin

Austin home prices slide, but still up in May 

(6/24/2015)

AUSTIN - Home sales were down in May, though the prices paid for those homes were still higher than they were a year ago, according to the latest monthly report by the Austin Board of Realtors.

ABOR said 2,767 homes sold in May. That's a 2 percent decrease from May 2014.

At the same time, the median price for single-family homes rose 9 percent compared to May 2014 to $271,000, while the average price of single-family homes jumped 7 percent compared to May 2014 to $348,201.

The number of new single-family home listings on the market declined by 3 percent to 3,865 compared to May 2014.

But the number of active listings was up 6 percent to 6,323. The average number of days on the market for a single-family home increased two days to 42 days compared to May 2014.

Housing inventory made a minuscule gain, increasing to 2.7 months of inventory from 2.6 months. That is still more than three months short of what could be considered a healthy market supply.

Read more at the Austin Business Journal.

Feel free to link Austin-Round Rock Market Research and Austin-Round Rock NewsTalk to your own website or blog.

Austin hotel market overview 1Q 2015 

(6/24/2015)

AUSTIN-ROUND ROCK - Austin area occupancy, revenue and room data for first quarter 2015 has been released by Source Strategies Inc.

Austin-Round Rock Hotel / Motel Performance 1Q 2015*
  Number of
Rooms
$ Room Revenues
(000's)
Occupancy
  2014 2015 %
Chg.
2014 2015 %
Chg.
2014 2015 Point
Chg.
Austin 23,086 22,723 -1.6 220,517 237,593 7.7 77.6 79.4 1.8
Round Rock 2,637 2,637 0.0 15,491 15,699 1.3 74.6 74.6 0.0
San Marcos 1,645 1,815 10.3 7,581 8,955 18.1 60.8 64.3 3.5
Georgetown 520 520 0.0 2,329 2,460 5.6 70.5 72.6 2.1
Cedar Park 395 443 12.2 2,119 2,419 14.2 70.3 70.2 -.1
Lockhart 127 127 0.0 343 467 36.2 61.2 78.7 17.5
Total** 30,916 30,912 0.0 264,755 286,947 8.4 74.8 76.5 1.7


*Ranked by 1Q 2015 number of rooms.
**Total includes all submarkets of the Austin-Round Rock area.

Source: Source Strategies Inc.

See more hotel data under Austin-Round Rock Market Research.

Be sure to link Austin NewsTalk to your own website or blog.

NAR Austin housing market 1Q 2015 

(6/23/2015 9:00:00 AM)

AUSTIN - First quarter 2015 housing data have been released for the Austin market by the National Association of Realtors.

Included in the report are housing affordability, drivers of local demand and new housing construction.

NAR Austin Housing Market 1Q 2015
Price Activity Austin U.S. Local Trend
Current Median Home Price (1Q 2015) $249,100 $203,867 Prices are up from a year ago,
but price growth is slowing.
1-year (4-quarter) Appreciation (1Q 2015) 10.2% 6.7%
3-year (12-quarter) Appreciation (1Q 2015) 28.8% 28.8%
3-year (12-quarter) Housing Equity Gain* $55,700 $45,533 Gains in the last 3 years have
extended the trend of positive
price growth after the recession.
7-year (28 quarters) Housing Equity Gain* $64,600 $5,333
9-year (36 quarters) Housing Equity Gain* $81,900 -$13,067


*Equity gain reflects price appreciation only.

Source: National Association of Realtors, courtesy of Prudential Ada Realtors

See Austin's full report by NAR Regional Real Estate Market 1Q 2015 (PDF). Scroll down for previous quarterly reports.

Be sure to link Austin NewsTalk and Austin Market Research to your own website or blog.

Randalls to anchor retail in Leander!  

(6/23/2015)

LEANDER - Cypress Equities, based in Dallas, has acquired a 12.7-acre site in Leander for a grocery-store anchored retail center to be known as Crystal Falls Town Center.

Randalls signed a lease for 63,182 sf as the anchor tenant in the project, which has a total of 93,642 sf of retail and restaurant space.

Construction on the project — at the southwest corner of Lakeline Blvd. and Crystal Falls Pkwy. — is estimated to begin in late summer, with a completion date slated for September 2016.

Read more at the Austin Business Journal.

Feel free to link Austin-Round Rock Market Research and Austin-Round Rock NewsTalk to your own website or blog.

Accesso's boffo entry into Austin Riata Corporate Park  

(6/21/2015 10:00:00 AM)

AUSTIN - The Class A, 690,000-sf Riata Corporate Park in Northwest Austin has been purchased by a Florida-based company. Riata Corporate Park is near US 183 and Oak Knoll Dr.

Accesso Partners LLC purchased the 51-acre, eight-building campus from Spear Street Capital of San Francisco. It's occupied by big-name tenants such as Accenture PLC, Pervasive Software Inc., Texas Instruments Inc., Xerox Corp., The Advisory Board Co. and NetSuite Inc.

The Riata acquisition also includes a stand-alone, 94,000-sf building that had been occupied by Apple Inc., which has been expanding and moving into its campus nearby.

Apple’s new Americas Operations Center, valued at more than $348 million and located at West Parmer Lane and Delcour Drive, is adjacent to Riata Corporate Park.

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

tag: Austin NewsTalk office

IRR 2015 forecast: Austin multifamily in the U.S. mix 

(6/19/2015 8:00:00 AM)

TEXAS, U.S. - The multifamily market sector continues to lead the commercial real estate industry in many respects according to the 2015 IRR U.S. Cities Forecast/Conditions viewpoint.

In terms of underlying operating performance, Class B continued to outpace Class A performance with respect to occupancy in 2014.

While the multifamily sector continued to show many signs of strength, including continued expansionary market behavior, strong occupancy rates, and historically low capitalization rates, the early warning signs of a shift in market dynamics may have reared their heads in 2014.

Multifamily Market Conditions and Forecasts
Market Area Class A
Inventory
(units)
Class A
Vacancy
Rate
Class B
Inventory
(units)
Class B
Vacancy
Rate
Forecast
Avg. Annual
Net Absorp.
2015-2018
(units)
Houston 286,830 5.72% 322,450 6.71% 7,596
Dallas 222,928 5.31% 211,637 4.30% 3,814
Atlanta, Ga. 196,150 4.34% 171,000 7.18% 3,600
Phoenix, Ariz. 127,427 4.50% 137,622 4.74% -
Austin 99,938 6.66% 73,681 3.32% 2,965
Fort Worth 82,704 5.30% 80,751 4.10% 1,217
San Antonio 79,710 8.09% 81,000 6.96% 4,500
Las Vegas, Nev. 66,253 5.68% 71,289 5.50% 4,770


*Ranked by Class A Inventory

Read the full Multifamily Forecast/Conditions U.S. Cities 2015 (PDF) report.

tag: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk multifamily

JLL: Austin office stats 1Q 2015 

(6/18/2015 8:00:00 AM)

AUSTIN - JLL has released first quarter 2015 Austin Office Insight report.

More than 600,000 sf of new construction delivered downtown in first quarter, representing a 7.6 percent increase in downtown inventory. Class A downtown deliveries during first quarter were over 90.0 percent leased.

Demand for larger blocks of space has increased, coupled with a limited supply of 50,000-sf blocks of contiguous space, has caused rental rates to rise.

While operating expenses have risen substantially due to increased appraisal values, the largest contribution to rent growth over the last five years is attributed to increases in base rent.

Approximately 68.0 percent of total sales transactions traded in the northwest submarket in first quarter 2015.

Class A and B Totals Austin Office Statistics 1Q 2015
  Inventory
(SF)
Total Net
Absorp.
(SF)
Total
vacancy
Average
Direct
Asking Rent
($/SF)
Under
Construction
(SF)
CBD 9,670,906 375,100 11.1% $45.51 755,388
Suburbs 37,826,419 192,218 13.1% $29.00 2,717,695
Austin Total 47,497,325 567,318 12.7% $32.19 3,473,083


For the full report see JLL Austin Office Stats and Insight 1Q 2015 plus historical (PDF).

tag: Austin Market Research, Austin NewsTalk office

JPI jumps into Austin with its 906 units 

(6/18/2015)

AUSTIN - With three Austin-area multifamily projects, Irving-based JPI has expanded its presence in the area with a new local office and team leader.

JPI’s Austin developments total 906 units, and include:

  • Cielo: 326 units completed April 2014, located on 38 acres in Bee Cave/Lake Travis area
  • Madrone: 228 units completed April 2015, located on 40 acres in Bee Cave/Lake Travis area
  • Sur512: 352 units expected to be complete April 2016, located on nine acres on South Congress.


“JPI is excited to re-establish roots in the Austin market,” says Ben Montgomery, managing regional partner for JPI’s southern region. “With the positive investment catalysts driving the Austin economy, the opportunity for growth is apparent and long-term.”

Read more at Globe St.

tag: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk multifamily

Walnut and Sage mix in 900-unit Austin sale 

(6/17/2015 7:13:00 AM)

AUSTIN - The 450­-unit Villages of Sage Creek and the 460-unit Park at Walnut Creek — value-­added properties located in North Austin — have been sold.

The assets were jointly marketed as the North Austin 2000’s Portfolio.

Constructed in the early 2000’s, Villages of Sage Creek and Park at Walnut Creek are Class A communities located in the Far North submarket.

The Villages of Sage Creek has 11 floor plans that range from 636-sf one-bedrooms to a 1,441-sf three-bedroom design, while the Park at Walnut Creek has 14 floor plans that range from a 696-sf one-bedroom to a 1,630-sf three-bedroom design.

Both communities are located in the Silicon Hills employment area, and the communities are minutes from retail and entertainment destinations Tech Ridge Center, The Domain and La Frontera.

ARA Newmark represented the seller, Dallas-­based Whole Life Management Co. The buyer in both transactions was Montgomery, AL-based B&M Management Co.

Read more at Globe St.

tag: Austin Market Research, Austin NewsTalk multifamily

Houghton Mifflin opens new page in Round Rock 

(6/16/2015)

ROUND ROCK - Houghton Mifflin Harcort Publishing Company plans to relocate its Texas regional office to Round Rock after City Council approved an incentive package June 11.

According to city documents, the company will bring with it 270 jobs with an average salary of more than $70,000.

As part of the deal, the company agrees to lease a majority of a 100,000-sf Class A office building developed by Live Oak-Gottesman in the La Frontera office development.

Houghton Mifflin Harcourt will also invest $3 million in facility improvements and personal property. In exchange, the city will pay the company $350,000 in Economic Incentive Payments over four years.

For leasing space to Houghton Mifflin Harcourt, Love Oak Gottesman will receive a tax abatement tiered over ten years.

Read more at Community Impact Newspaper.

tag: Austin-Round Rock Market Research, Austin-Round Rock NewsTalk

ABIA private jet terminal backed by Red McCombs 

(6/16/2015)

AUSTIN - A new general aviation complex promising upscale services and design aimed at private aircraft customers is underway at Austin-Bergstrom International Airport.

The $25 million facility is a partnership of San Antonio-based McCombs Enterprises and Million Air Interlink, a Houston-based chain of fixed base operations or FBOs.

The privately owned and operated terminal will include a 17,000-sf general aviation terminal, 42,000 sf of service facilities and short-term aircraft lease space, 82,000 sf of private long-term aircraft lease space and seven acres of available ramp space capable of serving any aircraft.

The terminal — expected to be completed in September 2016 — will include a contemporary passenger lounge, pilot club, state-of-the-art flight planning room and multimedia conference rooms.

Read more at the Austin Business Journal.

tag: Austin Market Research, Austin NewsTalk

Transwestern: Austin retail market watch May 2015 

(6/16/2015)

AUSTIN - Transwestern has released its May Market Watch report for the Austin area's retail sector.

The report contains submarket statistics on retail sales and retail leases.

Austin Retail Lease Statistics by Submarket
Submarket #
Bldgs.
Inventory YTD
Net
Absorption
Total
Occ.
Avg.
Net
Rent
CBD 16 989,895 56,315 96.7% $25.68
Central &
West Central
88 6,832,213 20,678 95.7% $17.55
North 74 5,100,260 34,960 95.6% $14.08
Northeast & East 73 4,484,686 31,229 97.7% $14.87
Northwest & Far
Northwest
96 6,812,399 3,014 91.4% $15.67
Round Rock &
Cedar Park
142 11,698,111 222,370 95.3% $16.11
South 100 7,699,756 -11,483 98.1% $18.78
Southeast 23 1,470,398 0 99.6% $10.74
Southwest 64 5,750,670 14,970 98.2% $19.78
Austin total 676 50,838,388 372,053 96.0% $16.35


Source: Transwestern

See Austin Retail Market Watch May 2015 (PDF) for the full report.

Be sure to link Austin Market Research and Austin NewsTalk to your own website or blog.

Georgetown GoldStar closing facility, 69 workers laid off 

(6/16/2015)

GEORGETOWN - GoldStar Transit, a Georgetown-based school bus transportation company, will shutter a facility in Manor and lay off 69 workers.

The layoffs are the result of Manor Independent School District's decision to take its bus operations in-house. The company's former contract with the school district netted $2 million per year.

Manor ISD reportedly plans to hire its own bus transportation workers to staff its new bus operations.

GoldStar will close its facility at 10332 Old Hwy. 20 in Manor. The layoffs are expected to be permanent and are scheduled to occur on July 31.

Read more at the Austin Business Journal.

Store RedZone Podcast RSS logo Twitter Facebook YouTube Mays Business School
© 2015. REAL ESTATE CENTER AT TEXAS A&M UNIVERSITY. ALL RIGHTS RESERVED. TERMS OF USE.