Important questions to ask before investing in commercial real estate

GUEST AUTHOR,  Jake Dober

Important questions to ask before investing in commercial real estate

Whether it is for running your business or renting out, investing in commercial real estate can be a great idea. But, as with most things related to real estate, you need to tackle it with proper care. To help you out, we will go over some important questions to ask before investing in commercial real estate.

What to ask yourself before investing in commercial real estate

Before we go over specific questions, we first need to establish why you are investing in commercial real estate. While you should always try to find the best piece of real estate for the smallest amount of money, you must keep certain distinctions in mind. These are based on whether you wish to run your business from your new location or rent it out. With this in mind, we will separate the two into different paragraphs.

Investing for running your own business

One of the most important questions to ask before investing in commercial real estate for your own business is whether the property will improve it. As said before, there is hardly a commercial piece of property out there that is cheap. Therefore, you need to figure out whether your investment is worth the cost.

A good time to relocate your business is when it is picking up and when you know that it will benefit from the relocation. This requires a deep understanding of how your business functions and how your location and environment effects it. Aside from being expensive, know that commercial moving is often quite arduous and complicated. So, do yourself a favor and carefully consider whether moving your business is the right call. Know that if customers have grown accustomed to your current location, you will experience drawbacks from changing it.

Investing in order to rent out or flip the property

On the other hand, if you plan on renting the commercial space to other businesses, there are different aspects that you need to consider.

First, you need to analyze the area where the real estate is situated. Doing so will help you figure out what business potential the real estate holds. Plenty of businesses live or die based on where they are located. And even a block or two can make a world of difference. For instance, say that you are planning to purchase real estate in Austin. There is a reason why so many people are deciding to move there. With some research, you can find out that Austin offers numerous opportunities for people from all walks of life. But, you need to dig deeper and learn how those opportunities are spread. Only then can you make an educated decision on where to invest.

Secondly, you need to consider the interior of your commercial real estate. Apart from location, the interior is one of the most important aspects, especially when it comes to productivity. While commercial space does leave a lot of room for creativity, there is a limit to how much you can alter a particular space. So, do the smart thing, and try to predict the interior layout of the property before you purchase it.

What to ask the real estate agent

If you plan on dealing with real estate responsibly, you will have to hire a real estate agent. Sure, modern technology does allow you to do your research and even purchase real estate without one. But, having an experienced professional by your side is a must. Unfortunately, not all real estate agents are capable of helping you out, even though most will say that they are.

For now, we will assume that you’ve done all that is necessary to find a suitable real estate agent. What you need to do now is use their knowledge of the local area and the experience in dealing with commercial real estate and prepare a list of questions to ask before investing in commercial real estate. You agent will help you figure out whether your investment is a sound one.

What is the history of real estate?

If a piece of real estate catches your eye, you’d be wise to inquire about its history. Knowing what that real estate went through and why it is currently for sale can save you from potentially catastrophic mistakes. If the previous owner used real estate to run a business, try to learn why it failed. As we have mentioned, location can play a significant role in how successful a company is. So, try to understand what circumstances lead to that piece of real estate being vacant. If you lack the motivation to do so, keep in mind the great quote that person who doesn’t learn from history is bound to repeat it.

Are there any plans for the local area?

Another critical thing to remember when purchasing real estate is that neighborhoods change. Whether you like it or not, the area where you plan to invest in commercial real estate will change. Of course, no real estate agent can see into the future and tell you precisely what that change will be like. But, a good real estate agent that keeps track of commercial real estate trends can give you a pretty good estimate. By knowing this, you can both figure out whether your business will flourish in the new neighborhood. Or, if you plan on renting, whether you should expect companies to come and seek commercial space.

Final thoughts

The weird thing about questions to ask before investing in commercial real estate is that the more you ask, the more questions seem to pop up. But, in actuality, this is good. If you ask before investing in commercial real estate, you will learn valuable information that should inspire you to analyze further. That further analysis will then bring more questions, and so on. All that we are saying is that the questions we’ve outline shouldn’t be seen as “all you need to know.” But more in light of “where to start” when it comes to researching investments in commercial real estate.

Guest Author bio:

Jake Dober has worked as a professional mover and moving coordinator for over 15 years. He now focuses on writing helpful articles for companies like Evolution Moving.com

Permanent link to this article: https://atxre.com/important-questions-to-ask-before-investing-in-commercial-real-estate/

Austin Ranked Among the 50 Priciest U.S. Office Markets in Q4 2020

In January 2020, The Statesman noted that Austin had concluded the final quarter of 2019 riding high and the office market was looking at optimistic forecasts for 2020. The city had, indeed, been seeing one of the fastest metropolitan growths in the country. In 2020, Austin office space has attracted big-name relocations and footprint expansions, including Tesla Motors, Oracle, and Samsung.

In the final quarter of 2020, the Austin office market was still performing well above average, despite quite a challenging year. According to a recent study released by commercial real estate listings website CommercialSearch.com, two Austin office submarkets ranked among the 50 most expensive in the country, in Q4 2020.

Specifically, office properties in East Austin commanded the highest average office asking rents in Texas—the submarket ranked 40th nationwide, with full-service equivalent asking rents resting at an average of $60.60 per square foot at the close of last year. The second-priciest office space in Texas was found to be in Downtown Austin, where office asking rents averaged $58.81 per square foot per year, which landed the neighborhood 46th of 50 entries.

The snapshot report considered all U.S. office submarkets with at least 10 listings of office space for rent during Q4 2020, including only office properties equal to or larger than 25,000 square feet. According to the article methodology, the research team analyzed a total of 992 U.S. office markets, and focused on the top 50, by average asking rent.

Along with Austin, top 50 ranking entries included submarkets from Boston, Washington D.C., Miami, New York City, Los Angeles, San Francisco, and the Bay Area. In fact, California submarkets continued to dominate the ranks of top-dollar office space and accounted for 29 entries of the total.

New York locales from Manhattan and Brooklyn took the other part of the lion’s share, occupying 13 of the remaining 21 spots. For the full list and nationwide highlights, read the original article here.

Ioana Ginsac | CommercialEdge Listing Network |

Permanent link to this article: https://atxre.com/austin-ranked-among-the-50-priciest-u-s-office-markets-in-q4-2020/

How much does it cost to lease office space in Austin?

It is widely known that Austin, Texas, is becoming a prominent city in the financial world. Accordingly, various start-ups, new companies, and established ones on the rise are moving their offices to Austin’s financial district. With investment advisors, tax consultants, law firms, insurance agencies, and entrepreneurs, Austin’s business district is becoming a financial Mecca. It offers excellent career prospects for individuals and companies that move to the area. If you have been considering moving your business operations here, you might be interested in finding out more about the cost to lease office space in Austin.

This is an important consideration since you will surely need a functional office to give a head start to your projected business plans. Without a functional and stimulating workspace, particularly in such a competitive market, you might find it challenging to join the ‘rat race’ and achieve your business goals.

Luckily, if you arm yourself with some insider intel, you will be able to bridge the initial gap and rent office space in Austin that perfectly suits your needs. Therefore, we have done some research and noted all the things you should know before settling for office space in Austin, Texas.

How much does it cost to lease office space in Austin by location?

As we have mentioned, Austin’s business market has become a force to be reckoned with, with many thriving businesses establishing their offices here. This has stimulated the commercial real estate market to catch up with demand, which has, in turn, given rise to several districts developing commercial real estate areas that could accommodate your planned lease budget.

However, if you are new to the business or unfamiliar with commercial real estate general trends and terms, understanding the complex office space pricing per square foot could present a challenge at first. Namely, even when you are informed about the general renting costs of commercial real estate properties in Austin, this does not mean this might be the total cost of any particular property of your liking.

The key is to take into account the exact location of the property in addition to the class of building in which you are interested in leasing office space.

Office space lease rates vary depending on the office building type and location.

Austin skyline

 

Renting office space in Downtown Austin

A few years ago, Downtown Austin was mostly occupied by government institutions, lobbyists, and law firms. However, tech and software companies have been rushing to Austin, TX in significant numbers in the last couple of years.

If you are interested in leasing somewhere in Downtown Austin, you need to be aware that what you can find in this area are predominantly Class A buildings, with only a few Class B and Class C buildings. This means that this is a Class A neighborhood, and the pricing of office space reflects this.

So, you have lease rates ranging from $35 to $40 per square foot for Class A and, in some cases, Class B buildings, with an occasional Class C building priced at around $20 per square foot. Note that you have to pay additional monthly parking fees that range from $125 to $175, in most cases!

You have to pay extra for parking spaces in Austin, TX.

A big parking lot in front of an office building, the price of which should be considered when calculating how much it will cost to lease office space in Austin

Renting office space in Southwest Austin

The same goes for leases in the Southwest Austin area. This is also known as an expensive area, but for slightly different reasons. As in Downtown Austin, the buildings here are predominantly Class A graded, with only some Class B and C buildings. Renting in Southwest Austin is priced like this because there is not a lot of office space available for lease in this area.

Lease rates in the Southwest Austin area go from $28 to $38 per square foot. If you are lucky enough to find a Class B office space, your monthly rental expenses should be $22 to $24 per square foot.

Southwest Austin is known for its high rental prices for Class A buildings.

Renting office space in West Austin and Northwest Austin

If the lease cost in Downtown Austin and Southwest Austin exceeds your budget, you might want to look into commercial real estate listings in West Austin and Northwest Austin. There are so many less expensive options here because buildings in these two areas are primarily Class B options, which are priced moderately compared to Class A ones.

West Austin is known for accommodating class B buildings and medical office space, with average lease rates running from $24 to $27 per square foot. Further on, you can find many Class B office buildings in Northwest Austin at around $23 per square foot.

Also, no matter where in Austin you find the perfect office building to settle your business operations in, make sure you hire a reliable moving company with the necessary expertise and equipment to handle the transfer of your inventory to Austin in a quick and organized manner.

Renting office space in Northeast Austin

If your business practices do not require you to worry about proximity to the business districts and various amenities located there, you should forward your gaze towards Northeast Austin. This part of the city is known for affordable commercial real estate, with the lowest lease rates in the city ranging from $18 to $22. Given the reasonable cost to lease office space in Austin, particularly in this part of the city, many non-profits and start-up companies rent office space in Austin in general and Northeast Austin in particular.

Writer Bio

Stephen Parker is a consultant with Heavenly Moving and Storage. He has assisted with numerous relocations, both commercial and residential, local and international. Since he is an avid reader, he has discovered he has a thing for the written word. He tried his luck as a content writer for his company and now he provides content for other interested parties as well. In his free time, besides reading and writing, he enjoys hiking in nature.

Permanent link to this article: https://atxre.com/how-much-does-it-cost-to-lease-office-space-in-austin/

Commercial real estate trends to watch in 2021 – A National Perspective

Commercial real estate trends to watch in 2021, Courtesy of Author, Mark Ortega

Commercial real estate trends to watch in 2021 will largely be the aftermath of the all-encompassing, show-stopping influence of the Covid-19 pandemic that has turned not only the national but also the global real estate market ‘upside down’ in 2020. Leasing and transaction patterns observed over the past few years encountered a steady rise at the beginning of 2020. However, industry professionals note that the virus threw forecasts for the year 2020 into complete disarray. Let us take a look at what 2021 has in store for commercial real estate.

Main commercial real estate trends to watch in 2021

The following commercial real estate trends are expected to be observed in the next year.

Brick-and-mortar shops and strip malls are struggling.

Warehousing and other types of distribution facilities have been experiencing greater developer activity due to the greater e-commerce demands in 2020. This trend is likely to continue well into 2021, especially given that brick-and-mortar shops struggle to make ends meet in the midst of Covid-19 lockdowns, general hygienic and social distancing measures, and increased e-commerce activity. Henceforth, many retail companies have switched to e-commerce as their main selling point, mostly due to the inability to pay commercial real estate leases.

Retail and restaurant rental activities are also unsteady.

Just as shops and malls struggle with paying their rental responsibilities, the Covid-19 pandemic has not been favorable to restaurants and other types of retailers. E-commerce had been expanding its influence at the cost of retailers even before the virus. However, online-based shops exhibited an unprecedented increase in profits since many nonessential shops and companies had to close down in the wake of the pandemic.

Some tenants have resorted to unconventional solutions to paying rent to stay afloat in 2021, such as paying rent in monthly installments that amount to a percentage of their total revenue until the global situation goes back to normal.

Warehouse leasing is a commercial real estate trend to watch in 2021

As mentioned above, warehousing has immensely benefited from the current shifts in large retail chains’ business operations. So, warehouse and industrial leasing have marked a significant rise in activity, with no indications of weakening any time soon. This is particularly characteristic of warehouse centers located around densely populated metropolitan areas.

This trend is especially true for e-commerce giants such as Amazon due to an increased demand for storage, dispatch, and delivery points. In fact, Amazon alone has extended its network by 100 new warehouse units in September 2020 alone to accommodate the upcoming Black Friday and Christmas holiday shipping demands.

Warehouse and storage facilities should continue to be in demand in 2021.

The future of the commercial office space sector is unclear.

Since many companies have been forced to switch to home office working, the office sector has been experiencing a reduction in rental agreements for the year 2021. Consequently, commercial real estate experts are divided when it comes to forecasts regarding the upcoming fiscal year.

On the one hand, it seems as if distance working could become prevalent in the following year with many companies adapting to government pressures to reduce the number of Covid-19 cases.

Many commercial properties have become vacant in the wake of the Covid-19 pandemic.

Otherwise, some experts predict that the current work-from-home regiment will not extend long into 2021, given its detrimental influence on companies’ work culture. This is good news for the commercial real estate sector, which seeks to backtrack the unprecedented number of office vacancies that have been the leading leasing trend this year. Other favorable forecasts include the predicted doubling of coworking spaces and other flexible office space locations in the next few years.

Shorter leases of office spaces are likely to remain the norm.

Given the precarious state of post-Covid-19 economic markets, tenants have expressed even greater interest in obtaining shorter leases than in the previous years. Considering this, it is highly likely that this caution will be guiding rental behavior in 2021. So, landlords in the commercial real estate sector will have to adapt to this trend with heightened flexibility and rental grace periods if they wish to compensate for long periods of commercial building vacancies that have marked 2020.

Accordingly, long term leases such as 15-year or 10-year rental contracts might become a thing of the (pre-Covid-19) past, with new rental agreements signed for shorter periods. Therefore, a business may need commercial moving services from gomovers.com sooner rather than later. Also, those who intend to switch back to working in an office will have to ensure the company they hire is compliant with all Covid-19 sanitary measures.

There is a high probability that lease contracts will be short-term rather than long-term in 2021.

Subleasing of commercial rental space is likely to ‘balloon’ progressively in 2021

One of the key commercial real estate trends in the last few months has been the sharp rise in the amount of commercial rental space available for sublease. In fact, to take Manhattan as an example, some market analyses have uncovered that the current leasing bubble has reached an all-time high in 2020.

Since most enterprises try to cut spending, the trend of retracting offers on extending their current rental agreements has been the key strategic move of companies attempting to backtrack some of the incurring losses they have experienced. However, more commercial office space available for subletting leads to a significant reduction in office rents, which could stimulate commercial rental activity, which has the potential to be one of the major commercial real estate trends to watch in 2021.

Author: Mark Ortega has extensive experience working in the commercial real estate sector as a leasing consultant for moving and self-storage companies. Understanding the erratic trends of the commercial real estate market has so far allowed him to accurately predict key trends in most US economies.

Permanent link to this article: https://atxre.com/commercial-real-estate-trends-to-watch-in-2021-a-national-perspective/

Commercial Real Estate FAQs: 13 Resources for Getting Started

Investing is an attractive prospect for many business professionals who are interested in real estate. But breaking into commercial real estate can seem daunting, especially if you haven’t dabbled in any type of real estate before.

For an introduction to everything you need to know about commercial RE development, check out these FAQs from ATX Real Estate.

Q1: How do I get started in commercial real estate development?

A1: You must earn a real estate agent or broker license to sell real estate where you live, plus organizational paperwork to establish your company.

Licensing for Real Estate Professionals

How Hard is it to Pass the Real Estate Exam?

4 Legal Structures You Should Consider for Your Real Estate Investments

Form Your Texas LLC Online Today

Q2: How do I know if a commercial property is a good investment?

A2: Determining commercial property values can be complicated. Looking at the location and amenities is a solid start, but you’ll also want to calculate whether the property offers a good return on your investment and ensure you have a solid lease agreement.

Walk Score: Cities & Neighborhoods

Rental Property Return Investment Tips

Austin Commercial Real Estate Lease Terms

Q3: Why should I consider investing in commercial RE?

A3: The potential for high profit margins is one reason why many investors dive into the commercial real estate business.

Why Commercial Real Estate Is an Important Investment Class

The 8 Types of Commercial Real Estate

6 Commercial Investments Most Investors Don’t Consider

Q4: How do I fill a vacancy once I buy an investment property?

A4: You can market your property on your own or hire someone to handle the rental for you.

Picking a Property Manager

When a Property Manager Is Required to Have a Real Estate License

8 Ways to Attract a New Generation of Tenants to Your Building

Investing in commercial real estate may be a lucrative way to develop your own business. By exploring these resources, and other content from ATX Real Estate, you can learn everything you need to know to decide whether commercial RE is the best move for your professional future.

Photo via Unsplash | Article provided by Shirley Martin
Tidylifetoday.com – shirley@tidylifetoday.com

Permanent link to this article: https://atxre.com/commercial-real-estate-faqs-13-resources-for-getting-started/

Austin Retail Slowly Showing Signs of Stabilizing in Q4 2020

Austin Real Estate Fundamentals
Austin Retail Continues its Slide
  • Absorption in retail continued its slide registering a negative 162,000 SF in the fourth quarter of 2020.
  • Occupancy remains steady at 95%.
  • Average asking rent increased from $20.25 to $20.50/SF quarter over quarter.
  • Projects under construction increased by 100,000 SF + in Q4 with some 161,000 SF of new construction coming online in Q3 of 2020.

CBRE Research, Q4 2020.

Permanent link to this article: https://atxre.com/austin-retail-slowly-showing-signs-of-stabilizing-in-q4-2020/

National October Office Report from CommercialEdge with focus on Austin

  • Austin and Dallas are currently the only two major markets with positive office using employment growth year over year. These markets have however seen available sublease space increase significantly since April.
  • The asking Average Full Service Listing rate for Austin was $42.63/SF/Year as compared to the National average of $38.11/SF/Year
  • The asking Average Full Listing rate has increased 5% over the last 12 months, compared to the national average of .6%.
  • Total vacancy in Austin is at 11% compared to a national average of 13.4%.
  • Compared to Dallas that currently has a $27.80/SF/Year Average Full Service Listing rate, down -3.4% over the last year and with a vacancy rate of 17.4%.
  • Over 7 million square feet of office space are currently under construction in Austin, almost 10% of the total stock.

Link to CommercialEdge National Office Market Report

Permanent link to this article: https://atxre.com/national-october-office-report-from-commercialedge-with-focus-on-austin/

Tips on choosing the right office space for your Austin-based business

Tips on choosing the right office space for your Austin-based business

A beautiful open office space, an example of what you should be looking for when choosing the right office space for your Austin-based business.

Going through the overwhelming process of choosing the right office space for your Austin-based business can be challenging. With the COVID-19 outbreak affecting the real estate market, there is no room for error. With that in mind, let’s see how to make an informed decision that will benefit your business in the long run.

Why are Austin-based commercial properties highly valued?

Austin is known as the tech hub in the US. However, the city is such a good place for a business because no industry holds the market. Everything from government services to health care and beyond is well developed. The array of industries that operate in Austin is wide.

Austin has developed a strong and versatile commercial real estate market to back up the growing company needs. The variety of choices is large, and everyone can find exactly what their business needs.

Work with an experienced real estate agent

Buying a property on your own is formidable. However, it is not something you should do at the moment. With so many companies closing and the real estate market going through fluctuations every day, you have to think about the best approach.

You need an experienced hand of a professional commercial real estate agent to guide you through the process from start to finish.

Nevertheless, understanding how to choose the best office space for your needs is vital. In the end, you are the one who has to decide whether to purchase or not.

Know what you want

The first thing you should do is sit down and talk with your real estate agent. They need to know you, your company, brand, and your employees. The more they know about the business, the better.

Commercial real estate agents work with companies all the time, and they already have a pretty good guess about what your needs might be. You will save yourself a lot of trouble if you have entirely transparent communication.

Talk about your location preferences, the size of the property, your budget, and your short-term and long-term goals. 

Searching for the property

Once your broker analyzes the situation and the discovery stage is over, he will have enough information to find the best office space for you.

Searching for a property can be a long process, so be patient. The goal is to find the perfect office space.

A broker’s job is to do extensive research, do surveys, scheduling tours, and find multiple options. After that, you will get a shortlist of possible options, with floor plans, property flyers, and everything else. The final step in this stage is visiting all the properties. Your realtor will arrange tours, and after seeing them all, you will narrow down the options to what you like the best. Your broker will contact the landlords and provide their proposals for you to review, based on your choices.

How to know what property to buy?

Even though you are getting all the information about the properties you are considering, you still have to decide which one to purchase in the end. A seasonal real estate agent who understands the market and the demand will provide detailed analysis and comparison of all properties and be there for you as a consultant. They usually know what features to look for and what makes a property suitable for your line of work.

Research the construction agreement

Choosing the right office space for your Austin-based business does not only mean looking for a nice looking property. Some offers have a better deal than others.

Another important step is to get construction estimates. Usually, the landlord hires an architect to layout a mockup of the floorplan and get the estimate for you. The pricing will tell you if the property is worth investing in or if it will be too expensive for you. This is crucial to establish before the negotiations start.

The negotiation phase

The negotiation process happens between your company, landlord, and lawyer, organized by the real estate agent. There will be a series of offers and counteroffers, all in hopes you can improve the terms of the contract. When both parties come to an agreement, your real estate agent will prepare the Letter of Intent, which outlines all terms and conditions, and it represents a sign of good faith between both parties.

Hot office trends for renting in Austin

Let’s take a few minutes to look at office space for rent in Austin. The two most popular options include:

  • core office – This type of office space is considered “stable.” Companies usually rent this type of office space for many years in advance and use it to build a headquarters or established markets.
  • flexible office – Flexible space is rented for a shorter time frame, and it includes daily, monthly, and in some cases, yearly rent. The usual use is for expansion, employee mobility, satellite office, etc.

Moving to your office after the completion of construction

It is a lengthy process, but you need to start moving in after the construction is over. This is a massive project, so you need someone to guide you every step of the way. The best approach is to reach out to professional commercial movers. Experience in this line of work can make a huge difference and help you avoid delays. The most crucial part is that your business does not suffer while all of this is happening.

Tips on choosing the right office space for your Austin-based business – delivered!

As you can see, finding help for choosing the right office space for your Austin-based business is vital. You cannot go alone into this endeavor and hope to finish it quickly and efficiently. You need professional assistance to avoid making mistakes and wasting your money, energy, and time. Good like finding the best property for your business!

GUEST BLOGGER’S bio

Jordan Hewitt is a freelance writer and an aspiring small business owner. He has contributed to a number of publications, and hopes that his guidance can help other struggling business owners.

Permanent link to this article: https://atxre.com/tips-on-choosing-the-right-office-space-for-your-austin-based-business/

For Sale, Highway 71 East, 36 acre and 9 acre parcel, 14 miles east of Austin Airport and Tesla

Drone Video of Highway 71 East Property For Sale

Highway 71 East in Cedar Creek, TX (14 miles east of Tesla and the Austin Airport). Two sites, One site is 36 acres, and other is 9 acres. Each with Hwy 71 East Frontage.

  • Jurisdiction:  Bastrop ETJ
  • Waste Water: Corex is currently located 1600’ west of the 36 acre parcel
  • Water: Aqua Water along property frontage  
  • Hwy 71 Frontage:  36 acre parcel has 1600 LF and 9 acre parcel has 400 LF
  • Parcels are +/- 1,000’ deep
  • Location:  Across street from LCRA McKinney Roughs Nature Park and the Hyatt Regency Lost Pines Resort.  14 miles east of Austin Airport, 14 miles east of new Tesla facility, 24 miles east of Austin, and 10 miles west of Bastrop.
  • Access: For 36 acre parcel, Hwy 71 East past Cedar Creek High School, second right after school at Still Forest Drive Exit, property on the right.  9 acre parcel is accessible at Hwy 71 East, second exit past Still Forest Drive to the right.
  • Possible Uses:  Industrial, Corporate Campus, Tesla related industry, Multifamily.
  • CALL ME AT 512-970-8359 with questions or for more information or email me at mark@matexas.com
Area Map showing proximity to Austin, Austin Airport, Tesla, and Bastrop.

Link to Property Flyer

Link to Loopnet Listing

Permanent link to this article: https://atxre.com/for-sale-highway-71-east-36-acre-and-9-acre-parcel-14-miles-east-of-austin-airport-and-tesla/

Office and Retail fundamentals down, Industrial Up in Q3 2020 Austin Market Report

Austin Real Estate Fundamentals
Downtown Austin, Texas

Office and Retail decline while Industrial posts positive demand

The Industrial market continues its surprised demand with distribution space driving the market to its 25th consecutive quarter of positive new demand.

  • Net absorption increased to 696,000 SF
  • Average asking rates increased to $9.88/SF
  • Vacancy dropped to 9.7%
  • 1.34 million SF of new construction continues forward.

Office vacancy continues to increase as negative market fundamentals continue in the office market.

  • Vacancy increased to 13.4%
  • Average office asking rates increased to $39.36/SF quarter over quarter with increases in operating expenses.
  • Development is flat with new construction appearing to have halted.
  • 29 projects with 6 million + SF are still under construction.
  • Last quarter over 200,000 SF came online

Retail continued its slide noting -426,428 SF of net demand

  • Occupancy is down to 94.6% in Q3
  • Average asking rent fell to $20.25/SF
  • Development activity has slowed. Construction activity continues but few new projects appear to be on the horizon.

Information courtesy of CBRE Austin. Links to Reports => Austin Industrial Market Q3 2020, Austin Office Market Q3 2020 , Austin Retail Market Q3 2020

Permanent link to this article: https://atxre.com/office-and-retail-fundamentals-down-industrial-up-in-q3-2020-austin-market-report/

Finding employment in Austin TX – professional advice

A woman at a job interview.

Article courtesy of Betty White, betty@movingofficessandiego.com

Finding employment in Austin, TX, can be overwhelming, but the options are ample. The city has a reputation as one of the best places to live in the US. The job market is strong, and the business environment is progressive and entrepreneurial. Several tech companies have more than 5,000 employees, and new companies are opening in Austin every year.

Hence, if Austin is your new address, focus on finding a home, and explore some expert real estate negotiating tips. We will provide you with professional advice on how to find employment and pursue a career here.

Set a clear job target

Knowing what you want and expect from a job is the basis of every job search. These factors will rule and steer all your decisions throughout the process. Take some time to contemplate on these points and make a definite list of the criteria your ideal job has to meet. Make sure the goals you set are attainable and manageable to avoid disappointment. If you succeed in your intentions, it will be easy for you to move here from any part of the state and build a career that will bring personal and professional satisfaction.

Create a plan for finding employment in Austin TX

A random job search is rarely a good strategy. It is vital to make a detailed plan, as it leads to commitment, diligence, and success in finding a job.

Firstly, you need to define a time frame. How much time do you need to see some progress while looking for employment? Then, explore job listings and list the companies that have attracted your attention and that you would like to work for in Austin. You will need to work on your criteria list and occasionally prioritize and narrow it, as job opportunities here are countless. Finally, once you create a list of potential employers, you will have to work on your resume and cover letter to adapt them to the hiring criteria.

Identify the best job listings

When you decide what you want and create a plan for finding employment in Austin TX, you can start looking for the best job listings. Job banks, networking sites as well as company websites, and niche sites are also helpful. One viable solution that can provide you with favorable and fast results is working with a recruiter. These are all the options that will maximize your odds of finding employment as soon as possible.

Brand yourself properly

The digital era we live in has considerably changed our approach to various tasks. The practices we apply when looking for a job are, thus, no exception. Nowadays, finding employment is impossible without branding yourself properly in the digital medium. Only then will your actual qualities and competence, combined with networking strategies, bring results.

Thus, in the initial phase of your job search, create profiles on LinkedIn or any other networking site. Your professional brand should leave a positive impression on potential employers, recruiters, and even contacts. This guarantees success in convincing potential employers that you are a candidate that the company can benefit from.

Combine offline and online efforts

While it is true that the Internet offers a genuine wealth of information to its users on job vacancies, salaries, companies’ and employers’ reviews, relying solely on the online environment is not a smart move. Although you will be applying for a job online, you should continue working on the best offline strategies. There is always a chance someone you know might help you with your job search. In other words, try to remember whether you know anyone at the companies you are considering that you can network with. When you connect to a company both online and offline, you stand out among other candidates, become a real person, and someone who has just gained an advantage among competitors.

List the companies you would like to work for

Having a list of target companies helps you stay focused on your job search. To stay well informed on relevant matters, sign up for email notifications for new job openings, and act promptly when the time comes. Revise the list occasionally, as your interests and priorities might change.

Improve your resume and create a compelling career story

Sending generic resumes is one of the most common mistakes inexperienced job seekers make. Instead, you should tailor the resume and your career story to contain the information relevant to the hiring criteria. Do your best to explain why your previous experience and the skills you possess make you qualified. Provide the details of what you have done so far, how it is impactful, and, finally, how a company can benefit from hiring you. 

Prepare for the interview

Proper preparation before a job interview is imperative. Firstly, find out as much as you can about the company. Secondly, try to predict the interviewer’s questions and practice answering them confidently. Make a list of questions you would want to ask regarding the company or the post you are applying for. Use your best to show expertise and knowledge to impress the decision-makers. Finally, dress smartly for the occasion.

Final thoughts

Due to the favorable business environment, finding employment in Austin, Texas, is significantly less demanding than in other US cities. Understandably, proper preparation is always necessary if you expect to reach your business goals. The city is not only the right choice for your career but for raising a family as well. With over 25% of top-rated schools, Austin is a frequent choice for many families.

Author: Allison Greenberg is a full-time office manager and a part-time blogger. While working at a medium-sized company, she has learned a lot about the process that potential candidates go through. In her articles, Allison hopes to provide helpful insight into the business world.

Permanent link to this article: https://atxre.com/finding-employment-in-austin-tx-professional-advice/

Austin leads country in new apartment deliveries through first half of 2020

Nationally apartment construction is at 5 year low, down 12% from 2019

Building Elevation
Austin leads country in new apartment completions through first half of year
  • Texas cities are the most active in apartment completion to date in 2020
  • Austin is leading this category nationwide
  • Texas dominates with three more cities – Houston, Dallas, and Farmers Branch
  • The Austin metro is fifth from the top for new construction projected through the end of the year. Austin has added 62,000 residents from 2018 to 2019. Over 50,000 new apartments have been built in the area since 2016.

Data from RentCafe Blog Post, 8/16/20, by Florentina Sarac

Permanent link to this article: https://atxre.com/austin-leads-country-in-new-apartment-deliveries-through-first-half-of-2020/

Q2 2020 Austin Office Market

Austin Office Market
Second Quarter, 2020 Austin Office Market information below courtesy of Colliers International, Austin, TX office.

Austin Sublease Space on the Rise

  • Subleases in the Austin Office Market have skyrocketed with companies including Parsley Energy and GoDaddy listing over 100,000 square feet each.
  • Sublease inventory is up 40% since the first of April, 2020.
  • The number of subleases has more than doubled when comparing year over year.
  • Despite the rise in subleases, large developments like Google and Indeed continue with construction of their new office towers.
  • Q2 of 2020 brought over 276,000 square feet of negative net absorption to the market place, with Class A buildings accounting for 165,602 square feet of the total.
  • 7,000,000 square feet of office space is currently under construction and over 2,000,000 of that is pre-leased.
  • City wide average rental rates increased over the quarter one numbers from $36.36 to $36.41/square foot/year.
  • Class A rental rates in Austin CBD decreased from $53.43/square foot/year to $52.99/square foot/year.
  • Citywide vacancy increased from the first quarter rate of 13.1% to 13.6%.

Click Here for the Austin Office Report courtesy of Collier’s International.

Permanent link to this article: https://atxre.com/q2-2020-austin-office-market/

1617 A, W. 6th St, Austin, TX For Lease

1617 W 6th St ATX
Street view of 1617A West 6th Street
  • Office For Lease
  • 1617 A, W. 6th St, Austin, Texas 78703
  • 1,464 SF
  • $32/SF/Year Rent + NNN
  • Date Available: 9/1/20
  • Lease Term: 3 + years

Great location. Just west of downtown. Close to Vibrant downtown scene.

4 offices, 1 Conference Rm, 1 Restroom, 4 reserved parking spaces + common, 1 Kitchen, 1 Reception, .

Floor Plan 1617 A W 6th

Call Mark Pustka at 512-970-8359, or email at mark@matexas.com

Permanent link to this article: https://atxre.com/1617-a-w-6th-st-austin-tx-for-lease/

Republic Drive, Kyle, Texas, 26 Acres For Sale

Republic Drive, Kyle, TX
Warehouse Zoning, All Utilities, Kyle TX development land

26 Acres For Sale, Kyle, TX.

Can accommodate single user or 16 lot warehouse subdivision

  • 25.98 Acres
  • Warehouse Zoning
  • All Utilities at Site
  • Single user, Campus Opportunity
  • Or 16 lot, preliminary platted, warehouse subdivision lots
  • Asking Price: $4,245,000 or $3.75/SF
  • Access: North bound Exit #215 off I-35 to Beebee Rd to Republic Dr. South bound Exit #215 off I-35 to Kyle Pkwy, U-turn to North to Beebee Rd to Republic Dr.
  • Location: Located on E side of I-35, between Buda and Kyle. 2/10’s of mile from I35 to Republic Drive.
  • Excellent access to I-35.
  • Strategically located to serve both Austin and San Antonio markets
  • Utilities: Pedernales Electric, Centerpoint Energy for Natural Gas, City of Kyle Wastewater, Monarch Utilities Water.
  • Additional Info Available: Geotechnical and Topographical
Republic Drive Survey
Survey of 25.98 Acres at Republic Drive, Kyle Business Park, Kyle, TX
Kyle Business Park Preliminary Plat
Preliminary Plat of 16 lot, Warehouse subdivision at Republic Drive, Kyle Business Park, Kyle, TX
Kyle Warehouse Development Site
Aerial photo of 26 acres and proximity to I-35, Kyle, TX
Ground View Kyle Business Park
Ground view of 26 acre lot looking northwest from end of existing Republic Drive roadway.
Ground View Kyle Business Park
Ground view of 26 acre lot looking north from end of existing Republic Drive roadway.
Ground View Kyle Business Park
Ground view of 26 acre lot looking northeast from end of existing Republic Drive roadway.

Call me at 512-970-8359 with questions or interest. Or email me at mark@matexas.com

Permanent link to this article: https://atxre.com/republic-drive-kyle-texas-26-acres-for-sale/

Austin MSA June Home Sales Rebound

Austin Housing 2020
Home Sales Rebound in June

Year over year home statistics in the Austin MSA improved in June.

  • Median Sales Price up to $340,000, up 4%.
  • Closed sales at 3,969 are an increase of 9%, which helped hold sales to only a 5.2 % decline during the first half of the year.
  • Homes were on the market for 4 fewer days, down to 44 days.
  • New listings are down 5% to 4,170.
  • Active listings are down 32% to 5,300.
  • Pending sales are up 33% to 4,737.
  • Total Sales Dollar Volume is at $1.67 billion which is up 13%.
  • Months of housing inventory is down .9 months to 1.8 months.

Rising prices, and low inventory are causing the local market to be very competitive and tight.

“There are plenty of unknowns in the months ahead, but June home sales across the MSA being up 9.3% year over year was tremendous when considering the strength of 2019”, said James Gaines, chief economist at the Texas A&M Real Estate Center.

Information courtesy of Texas A&M Real Estate Center, click here for Link.

Permanent link to this article: https://atxre.com/austin-msa-june-home-sales-rebound/

Austin Metropolitan Statistical Area (MSA) Housing Update

CLICK ON IMAGE TO GO TO INDEPENDENCE TITLE WEBSITE AND SEE ALL AUSTIN MSA GRAPHS IN PDF FORMAT.

Austin MSA Single Family Residential graphics courtesy Independence Title Company, data by Texas A&M Real Estate Center.

Permanent link to this article: https://atxre.com/austin-metropolitan-statistical-area-msa-housing-update/

Real Estate Center at Texas A&M projects impact of COVID on 2020 Commercial Real Estate

Information above courtesy of Texas Quarterly Commercial Report Texas A&M Real Estate Center – Click Here for Link to Entire Report

Permanent link to this article: https://atxre.com/real-estate-center-at-texas-am-projects-impact-of-covid-on-2020-commercial-real-estate/

Great Income Producing Property, Contractor or Service Provider For Sale at 2819 N. Bagdad, (address is formerly 4150 CR 279) Leander, TX

North Bagdad Rd also known as County Road 279 just passed new Glenn High School
Drone video providing overview of property front to back.
  • Asking Price: $1,400,000
  • Address: 2819 North Bagdad Rd also known as 4150 CR 279
  • 4.07 Acres
  • +/- 11,451 SF of Building Improvements
  • 2 Houses for use as Office and 1 Bedroom Apt (4,775 SF)
  • Swimming Pool with beautiful grounds / would work for Wedding Venue.
  • 2 large garages, a workshop building, 2 storage containers (6,676 SF)
  • Outside Storage Yard
Aerial Photo of Property

Executive Summary

DESCRIPTION: Currently zoned Single Family Suburban at front of lot and Single Family Rural at back of lot. On north edge of City of Leander. Residences with garages, workshops, storage yards, room to expand. 2 Houses, 1 Apartment, 2 large Garages, 1 carport, 1 Workshop and outside storage Yard. Extra deep well, heated pool, new A/C in apartment and bedroom side of house. Also hookups on site for a mobile home / trailer. Would make excellent office / industrial / yard work space with zoning change. Great Owner/User location.

DIRECTIONS: Take US Highway 183 North, west on San Gabriel Parkway, Right on Bagdad Rd N / CR 279, and property is on your left, 1.27 miles.

Street View. Main house to left, warehouse storage buildings to right. Controlled gate access.
Second Home on Site
Shop Building
Pool
Upstairs Apartment
Warehouse / Storage
Warehouse / Storage
Main House.

Contact Mark Pustka at 512-970-8359 or mark@matexas.com for more information or a tour.

Permanent link to this article: https://atxre.com/for-sale-homes-and-warehouses-on-4-acres-leander-tx/

South Lamar Office Space For Lease, Two (2) Suites

3901 South Lamar
Two (2) Office Spaces for Lease

First Floor, Suite 150

  • Size: 1,262 SF
  • Term: 3-5 Yrs
  • Asking Rent: $26.00 /SF/YR
  • NNN: $13/SF/YR
  • Use: Office
  • Full Build-Out
  • Available Now
  • See Floor Plan Below
  • 11’6″ Finished Ceilings
  • Space is in Excellent Condition
  • Fully Carpeted
  • After Hours HVAC Available
3901 S Lamar Suite

Third Floor, Suite 310

  • Size: 2,059 SF
  • Term: 3-5 Yrs
  • Rental Rate: $26.00 /SF/YR
  • NNN: $13.00/SF/YR
  • Use: Office
  • Full Build-Out
  • July 1 2020 Available
  • See Floor Plan Below
  • 9′ Finished Ceilings
  • Fully Carpeted
  • After Hours HVAC Available
  • One conference room.
3901 S Lamar Suite

Move in tomorrow to Suite 150. July 1st move in, for Suite 310. Rare availability, don’t wait. Building stays full. Great opportunity for office near downtown and in midst of S Lamar scene. 3 miles south of downtown Austin. Four story glass curtain wall office building on South Lamar. Pristinely maintained and serviced.

  • Bus Line
  • Conferencing Facility
  • Property Manager on Site
  • Signage
  • Energy Star Labeled

Highlights

  • On Site Property Management
  • Vibrant South Lamar location near new restaurants, apartments, condominiums and night life
  • On Site US Postal, UPS, Fed Ex and Lonestar Overnight

Permanent link to this article: https://atxre.com/s-lamar-office-space-for-lease-two-2-suites/

April Home Sales in Austin impacted by COVID-19

Austin Home Sales
Austin Home Sales decline in April
  • Compared to April 2019, residential sales across the five county Metropolitan Statistical Area declined by 22%.
  • Sales dollar volume fell 18%.
  • Active listings declined by 7%.
  • Housing inventory stands at 2.1 months, .2 months less than last year.
  • Median sales price increased 3.2% to $325,000.
  • Homes were on the market 9 fewer days or on average 43 days total.
  • Active listings dropped 7%.
  • New listings declined 21%.
  • Pending sales declined 25%.

Austin Board of Realtors, May 19, 2020

Permanent link to this article: https://atxre.com/april-home-sales-in-austin-impacted-by-covid-19/

Austin Apartment Rent Falls with COVID 19 Outbreak

Rents dropped from March to April 1.2% which is in contrast to a year ago when rents jumped 5.7%.

Occupancy was up .3% from March to April.

Five apartment complexes in April had negative absorption – less units occupied than the previous month.

An additional 4,500 apartments are expected to be delivered by years end.

Source: Real Estate Center Texas A&M

Permanent link to this article: https://atxre.com/austin-apartment-rent-falls-with-covid-19-outbreak/

Q1 Austin Industrial Leasing down, Development Up

  • Asking rates fell $.24/SF to $9.56/SF
  • Vacancy increased to 10.8%
  • Absorption fell to 222,416 SF
  • 423,919 SF came online
  • Total average construction rose to 1.2 million SF

Data courtesy of CBRE.

Permanent link to this article: https://atxre.com/q1-austin-industrial-leasing-down-development-up/

Q1 2020 Austin Office Market dips

CBRE Research shows that the Austin Office Market has softened for the first time in awhile.

Fundamentals have slowed when it comes to the first Quarter of 2020 Austin Office Market.

  1. Absorption increased to 600,000 + square feet.
  2. Triple net asking rates and OPEX costs caused the average asking rates to decline from $38.89/SF to $36.64 Quarter 1 2020 over Quarter 1 2019.
  3. Vacancy increased to 10.9%.
  4. Development remains strong with almost 7 million square feet under construction.

Information courtesy of CBRE. Click here for link.

Permanent link to this article: https://atxre.com/q1-2020-austin-office-market-dips/

Austin Housing Market Steady in March


Market remained steady amid early corona virus realities.

Despite shelter in place orders from local government beginning on March 25th the local housing market remained strong.

  • For the month residential sales were up 2.2 % year over year to 3,042 sales.
  • The median price of homes increased from by 11.7% to $335,200.
  • Monthly inventory dropped .7 months to 1.6 months (6-6.5 months of inventory is considered a balanced market).
  • New listings declined 12.7% and active listings dropped 26.6%.
  • Pending sales fell by 19.2%.

ABOR president Romeo Manzanilla is quoted as saying “the true impact of COVID-19 won’t be seen until April”.

Austin housing market remains steadfast in March |News Talk Texas | April 16, 2020 |

Permanent link to this article: https://atxre.com/austin-housing-market-steady-in-march/

Austin Construction Crews back to work

Austin Construction back to Work

Governor Abbott’s Tuesday Executive Order clears the way for contractors in Austin to get back on the job. Mayor Adler agreed late Thursday after initially banning construction in Austin on March 24th.

The previous ban on construction by Austin was in contrast to other metro areas in the state where construction work was deemed essential. The mayor’s back to work guidelines include “numerous employer requirements for all construction work. Those include social distancing guidelines and healthy work practice requirements, including pre-screening the “general health” of workers, limiting crew sizes and rotating shifts for sites with more than 10 workers on the job a time.”

Corona Virus in Austin: Construction crews back at job sites as work ban lifted

Permanent link to this article: https://atxre.com/austin-construction-crews-back-to-work/

Industrial Development continues at record pace

Austin Industrial Development

A new development in Hays County has pushed the annual total of new construction in the Industrial sector to almost 1.9 million sf – an all time high.

  • For past 3 years 5.4 million sf of new product has been delivered
  • Over 1 million sf is currently under construction with 37% pre-leased.
  • Citywide average asking rates continue to decline from their Q1 2019 highs to $9.80/sf in Q4 2019.
  • Vacancy remains steady at 10.5%.
  • Q4 2019 deliveries totaled 262,174 sf with 2019 total net absorption at 1,307,789 sf.

Austin Industrial MarketView Q4 2019 CBRE

Permanent link to this article: https://atxre.com/industrial-development-continues-at-record-pace/

Austin Office Market Finishes 2019 Strong

Austin Skyline

ECONOMY – Austin job growth has continued to outpace national averages and our unemployment rate is one of the lowest in the country at 2.5% Major tech expansion included companies such as Facebook, Google, Amazon and Indeed. The growth trend is likely to continue as more companies look to expand their operations in Austin.

CONSTRUCTION – Over 2.1 million square feet of new office space was delivered during 2019. Another 6.1 million square feet is still under construction. Office development is at an all time high. Class A downtown lease space remains in high demand with vacancies below 6 % and pre-leasing of new construction at 70%+.

RENTAL RATES – The overall asking rate increased to $39.21 / square foot up $2.95 per square foot compared to the last quarter of 2018. Class A space is at $44.14/ square foot a year over year increase of 7.4%. As demand continues and more companies move to Austin, asking rates are forecasted to maintain the rental rate increases.

Marketbeat Austin Office Q4 2019, Cushman & Wakefield

Permanent link to this article: https://atxre.com/austin-office-market-finishes-2019-strong/

Austin area home sales breaking records

In December the Austin Board of Realtors released their monthly report and home prices and sales have hit another historic high. Based upon November sales numbers it appears that 2019 sales will surpass the total number of homes sold last year. Last month sales rose 4.5% to 670 sales totaling 30,561 sales. This is just 300 less than 2018’s total sales volume. By looking at trends it appears that Austin will surpass 300 sales in December and thus exceed 2018 numbers.

Austin’s November median home price for a single family home rose 10.6% year over year to $405,000 an all time high for November. The Austin/Round Rock metro rose by a modest 1.7% increase to $305,000 while Travis County rose .6% to $355,000.

Land in Austin continues to be severely constrained and so home builders are moving outward in search of lower land costs and development opportunities according to Vaike O’Grady, Austin regional director for Metrostudy.

In November Williamson County home sales increased 13.2% while Hays County increased 17.8%.

“Limited and pricey housing within the urban core is driving residents to relocate to the suburbs”, according to Kevin P Scanlan, Austin Board of Realtor’s 2019 president.

Permanent link to this article: https://atxre.com/austin-area-home-sales-breaking-records/

Austin named CompTIA’s top 2019 Tech Town

CompTIA recently completed their 2019 Annual Tech Town Index. In this index of metropolitan areas the following categories were examined to come up with their ranking.

  • Where companies are hiring
  • Estimated projected job growth
  • Median annual salary
  • Average cost of living

Austin is the 2019 leader with Dallas, Texas the next Texas city at number 7 with Raleigh North Carolina and San Jose California at numbers 2 and 3 respectively.

CompTIA link to Article

Permanent link to this article: https://atxre.com/austin-named-comptias-top-2019-tech-town/