Oct 28

Commercial land for sale in Kyle, Texas – Hays Commerce Center

Commercial land for sale in Kyle, Texas

Commercial land is available and for sale in Kyle Texas at the Hays Commerce Center project.  This development is set to be the next major commercial development in Kyle.  The project is planned for a variety of uses including industrial, office, and retail.  The 100 acre site is located at the northwest corner of Interstate 35 and Kyle Crossing.  Lot construction is set to begin in October of 2015 with finished tracts scheduled for delivery in July of 2016.

Commercial Land for Sale in Kyle, TexasLocation and Access

The site has excellent access and a convenient location Commercial land for sale in Kyle, Texas.  The property is located at the northwest corner of Kyle Crossing and Interstate 35 along the northern city limits of Kyle, Texas.  The property is easily accessible from Interstate 35 whether you are traveling north bound (Exit 215) or south bound (Exit 217).

Size

The site is 100 acres in size and includes lots that range in size from one acre up to 16 acres with the flexibility of allowing for larger tracts if so desired.

Jurisdiction

The property is located in the city of Kyle, Texas, in Hays County.

Zoning and Use

The property is zoned Planned Unit Development or PUD which allows for a mix of uses including industrial, office and retail.

Utilities

Bluebonnet Electric will provide electrical service, CenterPoint Energy will provide natural gas and the City of Kyle will provide water and wastewater to the site.

Lots

One to Sixteen acre lots are available for purchase at Hays Commerce Center.  Page 5 of the 6 page pdf brochure below shows all of the lots as well as the internal roadway layout.  There are two phases of construction planned for this development.

Price

Pricing for the lots in the Hays Commerce Center start at $4 per square foot for lots internal to the project and range from $12 to $13 per square foot for lots with I-35 or Kyle Crossing frontage.

Scheduled Completion

The first phase of Lot Construction is set to deliver in July of 2016.  Depending upon lot demand the second phase will begin thereafter.

Kyle, Texas

Kyle is located along Interstate 35 and is the second largest city in Hays County, the fastest growing county in the nation.  Kyle is approximately 20 miles south of Austin and 60 miles north of San Antonio.

Contact Mark Pustka, McAllister & Associates for more information.  mark@matexas.com  512-486-3737 (office) or 512-970-8359 (cell)

Click Here for Link to Brochure

Click Here for Link to Site Plan

 

Permanent link to this article: https://atxre.com/commercial-land-for-sale-in-kyle-texas/

Oct 23

Austin Office Market Quarter 3, 2015

downtown skylineThe Austin Office Market for Quarter 3, 2015 continues to explore new heights of superlatives with the latest news regarding its performance.  Highlights include:

ABSORPTION

  •  649,339 square feet of positive net absorption for the quarter which is the highest quarterly absorption since Q4, 2012.
  • Year to date absorption surpassed 1.5 million net square feet.
  • If Q4 2015 net absorption is around 300,000 square feet this will set an all time high for annual net absorption.
  • Year to date net absorption for Class A now totals 1.5 million square feet.

RATES

  • The average asking rate is $31.53/square foot which is $2.30/square foot greater than one year ago.
  • Class A average asking rate totals $36.36 / square foot, Class B is averaging $25.61 / square foot, and Class C comes in at $21.50 / square foot respectively.
  • Highest asking rates remain in the Central Business District where they currently total $40.53 / square foot, followed by the Southwest market at $33.77 / square foot, and the Northwest at $31.43 / square foot.

VACANCY

  • Vacancy rate is at 10.9%, the second lowest rate ever and the lowest since Q4, 2014.
  • Central Business District vacancy tightened to 7.8% with Class A space at 8.8%.

CONSTRUCTION

  • Finished construction has exceeded two million square feet year to date, the highest level of new product delivery since 2008.
  • Two buildings totaling 340,000 square feet were delivered in the third Quarter with 28% of the lease space in these buildings pre-leased.
  • New construction starts in the 3rd Quarter include Domain 8 which totals 291,000 square feet with none pre-leased to date.

CBRE Austin Office, Q3, 2015 Report

Permanent link to this article: https://atxre.com/austin-office-market-quarter-3-2015/

Oct 15

Austin #2 in 2016 Real Estate Outlook

austin postcard zoomAustin is ranked second nationally for overall real estate market outlook for 2016 according to “Emerging Trends in Real Estate 2016” a recent report by the Urban Land Institute and PwC LLP.

The 2016 outlook for all property types in Austin is well above average according to the report with particular favorability shown toward single-family and retail.

The report notes that domestic and global investors are looking more at secondary markets such as Austin when considering locations to invest capital.  Austin also ranks in the top ten markets for entrepreneurship in 2015 according to the Kauffman Foundation.

Austin is ranked first for new development across all 75 markets surveyed, second for homebuilding and fourth for investment properties.

Some of the reasons for this high ranking include:

  • Austin has the highest % of millennials (those between ages of 16 and 35) with 32% surpassing Los Angeles and Madison, Wisconsin.
  • The cost of doing business in Austin is 102% of the national average, far less than cities such as New York which is 160% and San Jose which is 129%.
  • Prospects for jobs and homes continues to be a key for identifying top markets and both remain strong in Austin.
  • Co-working office space is an emerging niche market in office lease space and Austin is one of the cities that seems to be embracing this new approach.
  • Austin setting a 140 gallon per capita daily water goal and revising water conservation code to address long term drought conditions.
  • Austin’s use of a high frequency bus network.
  • Low cost of living and strong growth potential in the housing market.
  • Austin is a market with hospitals, universities, trade ports, and strong infrastructure – which is important to investors.
  • Austin properties have good tenant mix, are experiencing good growth, and rents continue to move upward.

Click here to download the pdf report version.

Permanent link to this article: https://atxre.com/austin-2-in-2016-real-estate-outlook/

Oct 02

South Lamar Affordable Housing – Bluebonnet Studios, Coming Soon

files.phpSouth Lamar affordable housing is under construction at Bluebonnet Studios a multi family project consisting of 107 efficiency units at 2301 South Lamar.  The project is being constructed for Austin based Foundation Communities and will be dedicated to low income tenants.  SpawGlass is the contractor for the project and its anticipated to cost about $15 million dollars and will include 60,000 square feet of air conditioned space.  Completion is scheduled for August of 2016.  The project was designed by Dick Clark + Associates and Forge Craft Architecture + Design.

The project is intended for tenants such as low wage workers in the service and entertainment industries that work downtown and need to be close to work.

Permanent link to this article: https://atxre.com/south-lamar-affordable-housing-bluebonnet-studios-coming-soon/

Aug 24

Austin Land Purchase Considerations

Austin Land Purchase ConsiderationsIf you are looking for land to purchase in Austin, there are several important items to consider.

I’m an Austin Real Estate Broker and am experienced in selling and helping Buyers purchase land. Austin land purchase considerations should include:

  1. What is the cost of the land? If I pay $1,000,000 for 10 acres to build a shopping center does that cost fit within my budget?  Or is $500,000 the most I can pay and still have a profitable project?  What have comparable properties in this same area been selling for?  If you can buy in this price range then you are “buying right”.  How much am I going to pay in annual property taxes?  A buyer will pay for a pro rata share of the taxes owed when the property is purchased, but remember that this is also an ongoing obligation.  How much are annual property taxes and can I afford them?
  2. Does the location work for the intended use? For example if someone is trying to build a convenience store is the site in a high traffic area?  If it is a retail use is it “on the driving home side” of the street?  Or if someone wants to build expensive homes is the location suitable or is it too close to commercial uses like an office building or a shopping center?  What do the adjacent properties look like?  Would I want to locate my intended use for the property next to what is currently located adjacent to this property?  Is the property next door taken care of or if I purchase next to it will it diminish my property value?
  3. What governing jurisdiction is the land located in? The City Limits? Is it in the Extra Territorial Jurisdiction (ETJ) of the City? Is it outside of these areas and in the County? The jurisdiction that the property is located in will dictate which rules and regulations need to be followed.  They will be different if you are in the City Limits vs in the Extra Territorial Jurisdiction vs in the County.  It might be advantageous to be in a particular jurisdiction – City A vs County as well.  There might also be state and federal laws that will impact the development of the property.
  4. If the property is in the City, what is the zoning category assigned to the property? The zoning category dictates the land use allowed on the property. If a property doesn’t have zoning or if a zoning change is to be requested then that will add to the time and cost.  Something to keep in mind is that zoning change requests are not always approved.
  5. Deed restrictions are private agreements and restrictions specific to the land in question.  They are noted in the deed, and restrict the use of the real estate in some way.  Deed restrictions can be attached to property whether it is zoned commercial or residential and are in addition to local, state and federal rules.  Deed restrictions can be more restrictive than other governing rules.
  6. Are there utilities to the site? Utilities would include water, wastewater, electricity, natural gas, telephone, and cable television. Water is the most important.  Water and wastewater are typically the most expensive utilities to extend to a property. There are work arounds for a lack of water and wastewater such as drilling a well for water or constructing a septic system for wastewater.  However these work arounds also involve ongoing maintenance and a limited lifespan.
  7. Is any portion of the property in a floodplain? If so then the buildable or developable area of the property will be reduced.  This in turn typically will reduce the value of the property.
  8. What are the topographic conditions of the land? Is it flat or is there slope to the land? The more steep the slope the more it will cost to develop the land because of the necessary cutting and filling of the soil.  In general flat land is preferred although a hillside location for a home or office can provide a very nice view.
  9. Is there roadway access to the property? If so is there an existing driveway and curb cut in place or will this have to be permitted and constructed?  How likely is it that a permit can be obtained at this location or is there already a driveway nearby which might diminish the chances?  Is the roadway in a state of disrepair? If so then what are the chances that the roadway will be repaired and how might this affect my planned use?
  10. An easement is a legal right to use another’s land for a specific purpose. Are there any easements on the property that might restrict or otherwise unduly affect my ability to improve the property?  Examples of easements include public utility easements which allow utility providers to install and maintain utilities.  Easements can also be the means of providing access to properties that do not otherwise have roadway frontage.
  11. A lien is an encumbrance on one person’s property to secure a debt the property owner owes to another person. Before purchasing property it is important to determine through the Title Search and Commitment process if there is an outstanding lien on the property. It is best to have the property owner take care of liens before the buyer closes on the property because it is easier to leverage a lien being released.

Remember one of the most basic questions that should be asked about the property is – “Why is it vacant and why hasn’t something been built on it?”

 

Permanent link to this article: https://atxre.com/austin-land-purchase-considerations/

Aug 16

Austin Real Estate Market Mid Year 2015 Update

dr dotzourPresentation at Real Estate Council Austin by Dr. Mark Dotzour. Dr. Dotzour is the Chief Economist and Director of Research for the Real Estate Center at Texas A&M University in College Station, Texas.

He earned his Ph.D. in the Department of Finance at the UT Austin in1987 and served as Associate Professor of Real Estate and Finance at Wichita State University for 10 years. As Chief Economist, he is currently doing market research to monitor how global and national trends are likely to impact residential and commercial real estate markets.

3b08249Article and Insights provided by Patrick Johnson, President of First State Bank Central Texas, patrickj@fsbcentex.com (512) 899-2212.  Patrick has extensive knowledge of the commercial lending process and is a dedicated, results oriented commercial banker. His bank delivers first class deposit, treasury management, and loan solutions throughout Central Texas. His specialties include Commercial real estate, equipment, and general commercial/industrial lending; bank depository and treasury services.

________________________________________________________________

Yesterday, I had the opportunity to attend RECA Exchange, a great program. Dr. Mark Dotzour, Chief Economist for the Texas A&M Real Estate Center, spoke. Dr. Dotzour is always a good show, and his research center is an excellent resource for all of us – I encourage you to become familiar with the resources available on their website. As part of RECA Exchange, we received some helpful data from Capitol Market Research and Cushman & Wakefield/Oxford Commercial on the various commercial real estate classes and their 2015 occupancy rates. I always appreciate these firms providing such good summary information. Please see their summaries, and Dr. Dotzour’s presentation, attached.

Here, I take some liberty to blend some data from the RECA Exchange breakout sessions and, with permission, Dr. Dotzour’s comments with my own observations.

Overall, the commercial real estate market is very strong in Austin in all areas and asset classes, and that is a very good indicator that the Austin economy is strong. Job growth contributes to continued real estate demand and absorption. But, it feels a lot like 2006. Do a crane count, and listen to all the bulls say it’s not going to end. Granted, as long as Austin continues to create jobs, the real estate market and economy will remain healthy. The trick is, usually events outside of Austin, at unknown times, cause the job market to stall. Additional points:

Austin and Texas

  • Acquisition, Construction and Development Loans, even at conservative loan to values (65% or less) typically granted by smaller regional and community banks, are constrained by oppressive, broadly applied, federally mandated regulatory rules that do not account for regional demand, conservative leverage levels, or market expertise. Despite high demand for housing in Texas, regulated banks simply can’t meet the demand for lot development loans and construction loans. This has particularly constrained single family lot supply. In many cases, these loans are being made in the private sector, at higher rates, which, in combination with limited supply, leads to higher real estate development costs (and ultimately – higher costs to the end user/consumer).
  • The Austin Multi-family (Apartment) market is still 94% occupied, but I would keep an eye on this asset class. Will we overbuild here? Probably. The question is when. If job growth slows, apartments will feel it first.
  • Texas has created, net, more than 2.5 million jobs since 2001 and leads the nation in job creation. Illinois has lost 150,000 jobs since 2001. Make your own conclusions on the types of economic policies and tax environments that create jobs, and those that destroy jobs.
  • Home affordability in Austin is increasingly becoming an issue. Overall, affordability in Texas has greatly contributed to companies relocating here. In order to continue to have that competitive advantage, we need to be able to build enough affordable housing, of all types.
  • Affordability, infrastructure improvements, and traffic, if not addressed, will ultimately limit Austin’s ability to continue to attract jobs and grow.
  • It is still difficult to get commercial projects through the City of Austin. Mayor Adler is focused on this, and some improvements are noted. The long promised, new development code, CodeNext, isn’t coming anytime soon. More of the same here, for the foreseeable future.
  • In Texas, the construction industry continues to have a labor shortage, both in residential and commercial construction. There are simply not enough trained trades people to meet demand. Skilled labor is demanding a higher wage. Subcontractors, as a result, have pricing power. Subcontractors that can deliver skilled crews on time are able to charge a premium. Overall, construction costs (based on client feedback) have risen by 15% to 20% in the past 2 years – largely driven by increased labor costs.

USA and Global

  • Dr. Dotzour’s very good point: The American Consumer is spending, has less debt as a % of income, and has more capacity to spend. Regardless of what politicians or the Federal Reserve does, the American Consumer is the ultimate driver of our economy. The American Consumer, with its $84 Trillion net worth, can buy China’s $1.6 Trillion in US bonds in heartbeat. We, the People, vastly outpower the Federal Government and Federal Reserve Bank. The American Consumer is in a relatively good mood, which is a good thing. As the American Consumer goes, so will our economy.
  • There are more than 5 million job openings, of all types and skill levels, in the United States of America. We don’t need more jobs; we do need more qualified workers. We do need more people willing to work.
  • The rest of the world is suffering from major headwinds. Although these headwinds certainly don’t, on balance, help the USA, they have a much broader and deeper effect in the rest of the world. In addition, our competitive advantages (Freedom, Relative Security, Our Own Oil, the American Consumer, Capitalism, Smart People) shine in comparison. These global headwinds are: Global Terrorism, Lower Oil Prices, Bad Government Economic Policies, Cyber Warfare, Government Debt, Communism, and Currency Wars. The worst actors here: China, North Korea, Russia, and Iran. Honorable mentions: Europe (Greece) and Japan.
  • Dr. Dotzour does not buy into the argument that long term, materially higher interest rates are around the corner. Demand for the safety of US Debt is just too strong, and we are a safe haven in a dangerous world. The fed can raise the overnight rate, but the 10 year US Treasury (which drives long term rates and your mortgage rate) is largely driven by the market, not the Fed. I will note that we have been hearing for 8 years that rates are going up, and our experience is that rates have never been lower.
  • I personally do think that, regardless of the US Treasury market, banks will ultimately have to start raising rates to account for increased regulatory and capital requirements mandated by Basel III and the incredible regulatory burdens of Dodd Frank and the CFPB. Ultimately, the consumer loses.
  • In the USA, we may still have some more room to run on this expansion cycle, but eventually, there will be a recession. That is the way capitalism works. Are you preparing your company and family for the next downturn? Make sure you are in a cash position to withstand the next downturn, and that you have not overleveraged yourself or your company. With some planning and plenty of cash, you may even be able to take advantage of some opportunities, as not all of us will be prepared when the music stops.

Permanent link to this article: https://atxre.com/austin-real-estate-market-mid-year-2015-update/

Jul 23

Quarter 2, 2015 Austin Office Market Report

downtown skylineQuarter 2 2015 Austin Office Market Report was recently released by Colliers International.  The citywide average office rental rate increased by 3.7% to $29.20/SF over the previous quarter according to a quarterly update provide by Colliers International.  The average Class A rental rate decreased from $42.64/SF to $41.58/SF.  Suburban office rates increased slightly to $32.87/SF.

Citywide vacancy increased from 10.2% to 10.4% from Q1 to Q2 continuing its gradual increase since Q3 of 2014. Suburban vacancy increased from 10.7 % to 11% due primarily to a large increase in Class A suburban office vacancy.  Average CBD Class A vacancy increased from 10.5 to 10.8%.  Citywide Class A vacancy increased from 10.7 to 11.4%.

Austin has surpassed Silicon Valley as the No 1 City in the U.S. for startups according to the latest Kauffman Index report claiming 180 startups.

Job growth continues steadily as the technology sector has expanded 17.8% since 2011 according to Forbes – primarily due to the relocation of California based companies.

Click here for the => Colliers International Q2 Office Market Report

 

Permanent link to this article: https://atxre.com/quarter-2-2015-austin-office-market/

Jun 27

2015 Austin Multifamily Forecast

2717 s lamar new project renderingA 2015 Austin Multifamily Forecast was recently released by Integra Realty Resources.  According to this report, multifamily should continue to lead all commercial market subcategories in 2015 according to a recent report by Integra Realty Resources (IRR) as reported by the Real Estate Center at Texas A&M.

In 2014 Class B continued to outperform Class A with regard to occupancy.  The 2014 Multifamily market continued on a path of expansion, with strong occupancy rates, and historically low capitalization rates –  early signs of a shift in the market may have been revealed in 2014 numbers according to IRR.

Click Here for the Full Report Integra Realty Resources (IRR) 2015 Multifamily forecast

Permanent link to this article: https://atxre.com/2015-austin-multifamily-forecast/

Jun 11

For Sale 3950 E Austin Street, Giddings, Texas, Retail

Aerial Map copyPRICE REDUCTION

RETAIL PROPERTY FOR SALE IN GIDDINGS, TEXAS

  • Address: 3950 E Austin Street, Giddings, TX 78942
  • $325,000 or $29/building square foot
  • Location: Highway 290 frontage at corner of County Road 226, Giddings, Texas.  Adjacent to Ramada Inn Hotel and in front of Giddings State School
  • Building: 11,099 Square Feet, Vacant/Owner-User
  • Acreage: 1.95 acres
  • Jurisdiction: Giddings, Texas
  • Utilities: City of Giddings Water and Wastewater, Bluebonnet Electric
  • Potential Uses: Neighborhood Retail Center, Day Care Facility / Nursery, Free Standing Building, Retail, Restaurant, Office.  City of Giddings offering Development Incentives for Family Style Restaurant.  Previously a Restaurant and a School District Learning Center.
  • A portion of the parking lot is in the FEMA floodplain.

Bldg Photo 2

Bldg Photo 1

Floor Plan Building

Hwy 290 View

 

 

 

 

Flyer Download

Permanent link to this article: https://atxre.com/for-sale-retail-property-giddings-texas/

May 29

Austin Multifamily Market Outlook 2015

2717 s lamar new project renderingThe Austin Multifamily market continues to expand due primarily to the area’s continued population growth, new business growth, and low unemployment.  Vacancy has been steady at under 5% in recent years and is expected to slightly increase in 2015 because of new product becoming available in the market.  Rental rates continue to increase with central and west Austin experiencing the highest rates.  Capitalization rates are steady across the market but will likely decrease slightly through 2015.  Downtown continues as a hotspot for new development with approximately 2,000 units under construction.

Integra Multifamily Annual Viewpoint

Permanent link to this article: https://atxre.com/austin-multifamily-market-outlook-2015/

May 21

Q1 2015 Austin Industrial Market Report

dsi elevationCitywide average rental rates continue their steady rise in the Austin Industrial Market at the end of the first quarter of 2015.  Since the first quarter of 2014 average rental rates have increased by 4.5% quarter to quarter up to $8.35/SF NNN and are up 21% on a year to year basis from $6.90/SF NNN. Average rental rates for industrial lease space in the southwest sub-market is at $14.13/SF NNN up 1.7% since Q4 and up 6.9% year over year.  The next highest rental rates were in the east sub-market at $13.39 up 30% quarter over quarter and up 145% year over year.

Vacancy is slightly up at 8.8% from 8.4% in Q4 2014.  Among sub-markets the southwest has the lowest vacancy at 1.7% followed by the south at 2.7% and then the east at 4.2%.  The Round Rock sub-market has 17.6% vacancy.

Q1 absorption totaled a negative 20,000 SF with the southeast sub-market having the largest number of SF of negative absorption at 387,000 SF.  Q1 positive absorption by sub-market was led by the far northeast with 327,000 SF absorbed.

One building totaling about 200,000 SF was completed in Q1 2015 with just under 700,000 SF still under construction in the area.

SOURCE:  Q1 2015 Industrial Market | Colliers International | Austin Industrial Market Research Report

 

 

 

Permanent link to this article: https://atxre.com/q1-2015-austin-industrial-market-report/

May 01

2015 Austin Commercial Real Estate Market attractive for Investors

austin skylineAustin ranks as the sixth (6th) most desired office and investment acquisition location for domestic investors in 2015, up two spots from 2014.  The only other Texas city that made the top 10 list was Dallas (Houston fell out of the top ten list likely because of energy market concerns).  The cities ahead of Austin on the list are much larger in population and include locales such as San Francisco, New York, Dallas, Los Angeles and Seattle.

The survey data was generated by CBRE Group and is the opinion of 80 of their largest U.S. investors.  North America Investor Intentions Survey 2015

Industrial properties are the hottest category for acquisitions, followed by Office.  Austin has several large office properties on the market with the local industrial market not being big enough to impact this survey.

Austin Business Journal Article: Jan Buchholz | 4/23/15 | Big-time investors rank Austin commercial real estate among best in U.S.

Permanent link to this article: https://atxre.com/2015-austin-commercial-real-estate-market-attractive-for-investors/

Apr 17

Q1 2015 Austin Class A Office Market Report

downtown skylineOxford Commercial’s recent first quarter of 2015 Austin Office Market update demonstrates the strength of the local office market with occupancy rates and average rents up compared to Q1 2014.  Occupancy is up to 91% from 90% a year ago and Class A rental rates are now at $35.60/SF compared to $32.70 a year ago.

New construction of Class A office helps with the supply side of things but according to Jason Steinberg with Equitable Commercial Realty there aren’t enough new projects under construction to keep up with demand.  Ryan Kasten with Cushman & Wakefield | Oxford Commercial notes that nearly 950,000 square feet of new Class A office was delivered to the market in the first quarter of 2015 but 83% of the space was pre-leased.

According to CBRE Austin is among the nation’s top 10 large markets for tech-driven office leasing demand.   With this downtown Austin has seen “an incredible transformation of culture in the last decade” primarily because of tech companies wanting to locate in the downtown office market.  Two of the largest deals in the first quarter included the tech firms Google leasing 200,000+ square feet downtown and Indeed leased 220,000 square feet in the NW submarket.

Austin American Statesman article by Shonda Novak – Tech keeps office demand high

Permanent link to this article: https://atxre.com/q1-2015-austin-class-a-office-market-report/

Mar 26

4th Quarter 2014 Austin Industrial Market Update

007CBRE Quarterly Market Reports for the fourth quarter of 2014 contains the following highlights.

1. Asking rates remain flat.  Overall Industrial asking rates average out to $.70/SF/Month with Warehouse averaging $.52/SF/Month and Flex Space averaging $.90/SF/Month (down $.02 from prior quarter).

The Southwest and Northwest Flex submarkets did show an uptick in the asking rate.  These submarkets have been high demand / low vacancy office submarkets and it appears that some of this demand has trickled down to the flex space marketing pushing rents up.  Southwest market flex rates totalled $1.28/SF/month up $.23 year over year and the Northwest market flex space rates averaged $1.12/SF/Month up $.27 year over year.

2. Vacancies are tightening across Austin with the North and Southeast submarkets having the lowest rates of 9.7% and 8.6% respectively.

3. Net absorption ended the year on a positive note, up 266,000 SF for the year.  The fourth quarter had 325,000 SF of net absorption.  The North and Northeast submarkets had the most positive net absorption in the fourth quarter while the Southeast had the biggest loss.

4.  Construction totaled 578,000 SF of new industrial product delivered to the market in 2014.  239,000 SF remains under construction in 2015.

5. Notable Tenant Movement included:

a.  Allergan occupied 88,000 SF at Parmer Sector 6.

b.  Blackmon Mooring occupied 49,500 SF at Northpointe Trade Center Bldg C.

c.  High Tech Carpets occupied 35,000 SF at Waterford Center 1.

Permanent link to this article: https://atxre.com/4th-quarter-2014-austin-industrial-market-update/

Mar 26

Austin Commercial Land Purchase Critical Items

Permanent link to this article: https://atxre.com/austin-commercial-land-purchase-critical-items/

Jan 08

2015 Austin Real Estate Forecast

Below are a handful of 2015 Austin Real Estate Forecast Articles that are packed with good information for those looking to get educated on how this hot market projects in 2015.

In summary 2015 trends include:

a)  Downtown transformations in locations other than the great coastal cities.

b)  In the 2020s Generation Z and its smaller households, fewer new consumers and fewer workers will begin to influence markets.

c)  Within a few years, the talk will be about labor shortages, not surpluses.

d) Real estate and technology will continue to force changes on each other – real estate by technology and vice versa.

e)  Geopolitical risks, global unrest, and natural disasters will continue to influence real estate investors.

f)  The need for clear brand identity continues to be important.

g)  IRA’s and defined contribution funds will continue to seek high quality commercial property for their mixed asset portfolios.

h)  It’s time for U.S. to get serious about upgrading infrastructure including health care facilities and educational buildings.

i)  The housing market looks stable.

j)  Beware of excessive optimism leading to a real estate bubble.

  • Real estate experts: It’s great to be Austin right now, but what’s next?  Austin Business Journal | 10/30/14 | Jan Buchholz

    For now, however, Austin remains in a very sweet spot, Farmer said, with more economic diversity than ever before. Some 34,000 jobs have been added locally from September 2013 to September 2014. Investors in Opportunity Austin — the area’s primary economic development program — are approaching 400, a record, Farmer said.

In summary:

a)  Lawrence Yun, economist and senior vice president of the National Association of Realtors loves Austin’s energy, sees the area as the exception across a more lackluster landscape across the country.

b)  Yun also expects the Federal Reserve Bank to raise interest rates in 2015.

c) Gary Farmer, president of Heritage Title laments the potential loss of the Texas Enterprise Fund which has awarded millions of dollars of incentives to new Texas businesses.

d)  Farmer also said that efforts to tie incentives to so-called living wages and other specific requirements will tend to drive business away.

  • What does the future hold for Austin? Respected economist tells all  Austin Business Journal | 1/8/15 | Jan Buchholz

    In the next two years, about 3.6 million square feet of office space will be absorbed. Those numbers are 700,000 square feet in the industrial sector and 1.6 million square feet of retail space. About 18,500 single family residents should be added to the housing stock as well as 16,500 new apartment units. “Let’s hope that all the single-family homes are built,” Angelou said.

In summary:

a) Austin is expected to add 69,400 jobs in 2015 and 2016.

b) Austin has the most expensive housing in the state. The hope is that more supply will drive these high prices down.

c) +40% of Austinites pay more than 35% of their income on housing.

d) Housing costing less than $150,000 is practically non-existent.

e) Today’s economic drivers are population growth, technology and enterprise, education, health and the festival economy.

f) Work commutes have increased 57% between 2000 and 2013.

Permanent link to this article: https://atxre.com/2015-austin-real-estate-forecast/

Dec 18

South Buda Business Park lot Sold to ADB Investments

South Buda Business Park Lot Sold A South Buda Business Park Lot was recently sold to ADB Investments.  With the purchase of this second parcel, 9.14 acres total has been purchased by ADB Investments from my client, CX Properties in Buda, Texas.  Lot 9 along with Lot 10 has 535 feet of frontage on FM 967 (South Loop 4) and 695 feet of frontage on Business Park Drive.  It is our understanding that the Purchaser will open and operate a large mining equipment refurbishment and sales business.  Congratulations to both CX Properties and ADB Investments.

Permanent link to this article: https://atxre.com/south-buda-business-park-lot-sold-to-adb-investments/

Dec 12

Austin Commercial Real Estate Cap Rate Survey Mid Year 2014

sold-signAustin Commercial Real Estate cap rate survey as of the mid year 2014 was recently made available by CBRE.  Click here for report.

For those not familiar with cap or capitalization rate it is a way to measure the rate of return on real estate investment property based upon projected income.  This is calculated by dividing the net operating income (gross income less costs) by the total value of the property or mathematically Capitalization Rate = Yearly Income divided by Total Value.

[important]

Central Business District Office Buildings Stabilized Cap Rates

  1. Class A ranges from 5 to 5.25%.
  2. Class B ranges from 6.5 to 7%.
  3. Class C ranges from 8 to 8.5%.

Suburban Office Buildings Stabilized Cap Rates

  1. Class A ranges from 5.5 to 6%.
  2. Class B ranges from 6.5 to 7%.
  3. Class C ranges from 8 to 8.50%.

Retail Neighborhood / Community Center (Grocery Anchored)

  1. Class A ranges from 5 to 5.5%.
  2. Class B ranges from 7 to 7.75%
  3. Class C ranges from 9.25 to 9.75%

Retail Power Center

  1. Class A ranges from 6.25 to 6.75%
  2. Class B ranges from 7.25 to 8 %
  3. Class C ranges from 9.25 to 9.75%

Industrial

  1. Class A ranges from 6 to 6.5%
  2. Class B ranges from 6.75 to 7.25%
  3. Class C ranges from 8.5 to 9%

[/important]

 

Permanent link to this article: https://atxre.com/austin-commercial-real-estate-cap-rate-survey-mid-year-2014/

Nov 24

Austin Commercial Real Estate Search for Warehouse Lease

WarehouseAustin Commercial Real Estate Search for Warehouse lease space for an Austin area Industrial Client looking in the northwest Austin are from US Highway 183 and Burnet Road up to and including Leander, Texas.

LEASE NEEDED

Who: Industrial Lease Client

Need: +/- 10,000 Square Feet

Location: Hwy 183 and Burnet Road to the Northwest up to and including Leander, Texas.

Details: Three (3) to Five (5) Year Lease Term
At least one (1) Dock High Loading Area
Three (3) Phase Electrical Service
Three (3) offices, one (1) breakroom, and restrooms
+/- 16’ Clear height to ceiling dimension
6-10 parking spaces

When: July 2015 Move In (possibly sooner)

Permanent link to this article: https://atxre.com/austin-commercial-real-estate-search-warehouse-lease/

Nov 14

Fall 2014 Austin Commercial Real Estate Market Trends

dr dotzourDr. Mark Dotzour, Chief Economist at Texas A&M University in College Station, Texas shares the following observations about Commercial Real Estate Market Trends from his recent experience in participating at multiple national conventions.  Most if not all of these trends can be found in the local Austin Texas Commercial Real Estate Market.

  1. Foreign investment is still in hot pursuit of  U.S. real estate.
  2. There is intense demand from foreign investors to use EB-5 funds to purchase real estate.
  3. Some lobbyists are concerned that the 1031 Exchange may be under fire in the next Congress.
  4. Two recent sales in the Beverly Hills and San Francisco multifamily markets were at below a 3 percent capitalization rate.
  5. There is intense institutional competition for quality office and multifamily properties in dense urban areas of the country’s biggest metros.
  6. Interest remains low for suburban office and flex industrial.
  7. Construction is up but absorption still exceeds completions in most places.
  8. Amazon’s new business model is creating a demand for warehouse space in many parts of the country.
  9. Demand for manufacturing space is down while companies continue to automate their processes.
  10. Commercial mortgage money is getting cheaper as lenders become more aggressive in an effort to facilitate deal-making.

Permanent link to this article: https://atxre.com/fall-2014-austin-commercial-real-estate-market-trends/

Nov 05

Austin Real Estate Search for Hotel Site

Office Construction

Austin Real Estate Search for Hotel Site

Commercial Real Estate Broker searching for Hotel Site for new Hotel Franchisee in North Austin.

Client: Hotel Franchisee Looking For New Austin Site
Location: Focus is on Interstate 35 and Parmer Ln but would consider other North Austin Texas I-35 locations.  Tech Ridge area is preferred.
Need: +/- 2 Acres
Please send all Possibilities
When: ASAP

Permanent link to this article: https://atxre.com/austin-real-estate-site-search-for-hotel-site/

Nov 03

Lacrosse Sporting Goods Store New Austin Location

lax-sticks2_655_thumbLACROSSE SPORTING GOODS STORE NEW AUSTIN LOCATION SEARCH

Who: Lacrosse Sporting Goods Store

Detail: Specialty Sporting Goods – Lacrosse Equipment

Currently two locations in two separate Midwest Markets

Need: +/- 3,000 SF

Location: Loop 1 (Mopac) / Hwy 183 area

Budget: +/- $24/sf/year

When: ASAP

Permanent link to this article: https://atxre.com/lacrosse-sporting-goods-store-new-austin-location/

Oct 24

Quarter 3, 2014 Austin Office Market Report

downtown skylineFor the 3rd quarter 2014, the Austin office market vacancy rate dropped to 8.6%. Net absorption totaled 760,000 SF, up from 373,000 SF of absorption in the 2nd quarter of 2014.  Rental rates ended the quarter at $28.93/SF/year average price which is an increase over the previous quarter’s average.  Six new buildings were delivered to the market in the 3rd quarter totaling 102,000 SF with 2.8 million SF still under construction.

 

This data compares favorably to the national vacancy rate average which stands at 11.2% and average rental rates at $22.38/SF.

 

Costar Group News: Regional October 21, 2014

Permanent link to this article: https://atxre.com/quarter-3-2014-austin-office-market-report/

Oct 15

South Buda Business Park Lot Sold to ADB Investments

SouthBudaBusinessPark[important]Austin Commercial Real Estate Site Sold!  ADB Investments, LLC purchased 4.4 acres recently from my client, CX Properties in Buda, Texas.  Lot 10, Block A has 535 feet of frontage on FM 967 (South Loop 4).  It is our understanding that the Purchaser will open and operate a large mining equipment refurbishment and sales business.  Congratulations to both CX Properties and ADB Investments.[/important]

Permanent link to this article: https://atxre.com/south-buda-business-park-site-sold-and-closed/

Oct 10

3Q 2014, Austin Industrial Market

007The Austin Commercial Real Estate industrial market was relatively quiet in the 3rd Quarter of 2014, registering 14,704 square feet of absorption.

Year to date absorption remains at a negative 71,663 square feet.

The 3rd quarter numbers were an improvement over the 2nd quarter negative 168,774 square feet of absorption.

Vacancy totals 10.8%, an improvement over the second quarter’s 12.1%.

Warehouse space continues to outperform flex space with 118,087 square feet of positive absorption for the quarter.

The warehouse market has totaled 583,000 square feet of positive net absorption year to date compared to 655,000 square feet of negative absorption in the flex market.

Click here for link to REOC report summary.

Permanent link to this article: https://atxre.com/3q-2014-austin-industrial-market/

Oct 07

Texas Relocation Report, 2014 Edition

The Texas Association of Realtors recently released their 2014 edition of the Texas Relocation Report.  Click here for a link to the report.

  1. Texas gained more out of state residents in 2013 than any other state.
  2. 584,034 people moved to Texas from out of state in 2013.
  3. The majority of out of state residents that moved to Texas were from California more than double any other state followed by Florida, Oklahoma, Louisiana and Illinois.
  4. Texas ranked third in the nation with the number of residents moving out of state with a total of 409,977 behind California and Florida.
  5. Net gain of out of state residents totaled 138,057 people.

Permanent link to this article: https://atxre.com/texas-relocation-report-2014-edition/

Sep 19

Austin Commercial Real Estate Market Update Mid Year 2014

downtown skylineQ2 2014 AUSTIN COMMERCIAL REAL ESTATE OFFICE MARKET
The second quarter of 2014 netted 331,000 square feet (SF) of positive net absorption.  Year to date absorption totals 529,192 SF.  Second quarter lease activity totaled 1,285,825 SF of signed leases which equates to 260 lease transactions for the second quarter, a 5% increase over the Quarter 1 activity.  476,000 SF of lease space was signed in the CBD with 598,000 SF signed in the Northwest / Far Northwest sub-markets respectively.  The average asking rate for rent is $20.11 net /SF/Year or $29 gross /SF./Year.  Occupancy is up .9% over the previous quarter and 1.4% up over the previous 12 month period.   Approximately 424,000 SF of new office space has been delivered to the market in 2014, with over 2.8 million of new construction underway.  Pre-leasing for new construction has been strong at 36%.
Transwestern Second Quarter 2014 Austin Office Market Outlook

Q2 2014 AUSTIN COMMERCIAL REAL ESTATE INDUSTRIAL MARKET
Quarter 2, 2014 was the second consecutive quarter of net negative absorption in the Austin industrial market.  2009 was the last time the first two quarters of the year started with negative absorption.  Absorption totaled -109,469 SF for Quarter 2 and the Year to Date total negative absorption reached – 293,813 SF.  Flex space and warehouse space totaled 13.4% and 10.4% respectively in terms of vacancy rates.  Dell in the Northeast sub-market and Tharco in the Hays County sub-market accounted for 300,000 SF and 194,000 SF respectively of lease space returned to the market.  Positive absorption in the Far Northeast sub-market totaled 100,000 SF.  Industrial citywide average asking rates increased by $.04/SF quarter over quarter, the largest increase for citywide asking rates since rate tracking began.  Flex rates totaled $.87/SF/month up from $.79/SF/month which is the highest rate ever recorded.  Warehouse rates decreased by $.01/SF/month.  3.9 million SF of active industrial tenants are in the market place as of quarter 2, 2014 – maintaining a strong demand for new industrial space despite the negative absorption.
2Q 2014 CBRE Austin Industrial MarketView

Q2 2014 AUSTIN COMMERCIAL REAL ESTATE RETAIL MARKET
Weitzman Cencor’s mid-year 2014 market report shows overall occupancy at 95.6 % an increase of 1% and the highest occupancy rate in a decade.  The high occupancy number has led to a shortage of end cap locations and pad sites in Class A locations.  Most new construction in the market is for neighborhood strip centers in the 10,000 SF range with 30 such projects underway or set to open in 2014.  Retailers continue to lease up large format vacancies in the market including tenants such as Trader Joe’s, The Tile Shop, DD’s Discounts (Ross Dress for Less concept), Salons by JC (San Antonio based) and  Southwest Theaters (a discount movie chain).

2014 Weitzman Cencor Mid Year Retail Texas Snapshot
Q2 2014 AUSTIN RESIDENTIAL– Mid-Year Statistics

  • 13,426 – Single-family homes sold, three percent more than the first half of 2013.
  • $239,900 – Median price for single-family homes, seven percent more than the first half of 2013.
  • $308,298Average price for single-family homes, six percent more than the first half of 2013.
  • 47 – Average number of days single-family homes spent on the market, seven days fewer than the first half of 2013.
  • 19,276 – New single-family home listings on the market, one percent more than the first half of 2013.
  • 5,327 – Active single-family home listings on the market, two percent fewer than the first half of 2013.
  • 15,263 – Pending sales for single-family homes, three percent fewer than the first half of 2013.
  • $4,139,209,987 – Total dollar volume of single-family properties sold, eight percent more than the first half of 2013.

Austin Board of Realtors Mid Year Results 2014

Q2 2014 AUSTIN MULTIFAMILY
Austin multifamily occupancy rates ended the second quarter at 92.6% up .9% from the first quarter but down 1.9% compared to Q2 2013.  Average rent totals $1,052 / month compared to $1,031 / month in Q1 2014 and up from $979/month year over year.
ALN Midyear Multifamily Report Card Texas

Permanent link to this article: https://atxre.com/austin-commercial-real-estate-market-update-mid-year-2014/

Sep 11

Quarter 2 2014 Austin Office Construction Update

Office Construction

Quarter 2 2014 Austin Commercial Real Estate Market New Office Construction update by Colliers International recently came out.  The following tidbits regarding new office construction were noted:

  • As of the second quarter of 2014 Austin had more than 2.4 million square feet of office space under construction.
  • Seven new buildings totaling 199,286 square feet were completed in the second quarter of 2014.

Permanent link to this article: https://atxre.com/quarter-2-2014-austin-office-construction-update/

Sep 03

Austin Site Search for Concrete Contractor

Concrete ContractorAustin Site Search for Concrete Contractor

PROPERTY FOUND AND UNDER CONTRACT

Client:  Concrete Subcontractor

Need:  Five (5) to ten (10) acres with stabilized base, concrete or asphalt pavement.  Building square footage for offices and some storage.  Will consider raw land purchase and then constructing improvements.

Utilities:  Need water and electricity at minimum.  Gravity waste water preferred but will do septic system if necessary.

Location:  South Austin Texas to Buda and east of Interstate 35.  Convenient to US Highway 183, I-35 or TX 130.

Permanent link to this article: https://atxre.com/austin-site-search-for-concrete-contractor/

Aug 28

Austin Commercial Real Estate Market Industrial Update Q2 2014

007For two consecutive quarters the Austin Industrial market shows negative absorption, the first time back to back quarters of negative absorption have been posted since 2009.

  • Q2 2014 posted negative 109,469 square feet of negative absorption.
  • Year to date 2014 absorption totals negative 293,813 square feet
  • Vacancy has therefore risen 40 basis points quarter over quarter to 11.6%
  • Flex space negative absorption totaled 94,684 square feet for Q2
  • Warehouse space totaled negative 14,785 square feet of absorption
  • Q2 vacancy totaled 13.4% and 10.4% respectively for flex and warehouse space.
  • The Far Northeast submarket had positive net absorption of 100,000 square feet.
  • The Northeast submarket posted negative 309,704 square feet of absorption, primarily from Dell vacating their Sector 6 building (-300,000 SF)
  • Q2, 2014 did show an average asking rate increase of $0.04 per square foot quarter over quarter, the largest increase for citywide asking rates since tracking of this metric began.
  • The 120,000 square foot 130 Pecan Building A, was added to the Far Northeast submarket during this quarter bringing the YTD total to 570,000 square feet of new building added to the greater Austin market area.

Click here for CBRE’s Q2 2014 Austin Industrial MarketView.

Permanent link to this article: https://atxre.com/austin-commercial-real-estate-market-industrial-update-q2-2014/

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