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 …
Article courtesy of Betty White, email@example.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. …
Nationally apartment construction is at 5 year low, down 12% from 2019 Texas cities are the most active in apartment completion to date in 2020 Austin is leading this category nationwide Texas dominates with three …
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 …
Austin MSA outpaces City of Austin Single Family Sales
During the first half of 2019 sales experienced strong growth in the Austin MSA but declined in the City of Austin. ABOR President Kevin Scanlan explained that the limited housing inventory (less than 2 months supply) in June and the increase in home prices combined to reduce sales in the City of Austin. This limited inventory and increase in prices has pushed more and more buyers to the suburbs.
Austin / Round Rock MSA in first half of 2019 Single family home sales increased 4.3% year over year Median Home price increased 1% to $315,000 New listings increased by 1% Active listings increased 4.8% Pending sales increased by 7.9% Sales volume increased 6% year over year
Austin / Round Rock MSA in June of 2019 Single family home sales increased .5% year over year Median home prices rose 3% Housing inventory decreased by .2 months to 2.7 months, well below the 6 month balanced housing market time frame
City of Austin first half of 2019 Sales decreased 1.6j% year over year Median price increased by 3.2% to $387,100 New listings decreased by 3.4% Active lsitings decreased 5.7% Pending sales increased by .2%
City of Austin June of 2019 Sales decreased 2.3% Median price jumped 10.9% to $420,000 Inventory decreased .2 months to 1.9 months
Asking rates for Industrial property rent are at a historical high according to CBRE’s first quarter Austin market report. $10.79 per square foot per year is the new high water mark driven mostly by Class A Flex space. In addition:
Absorption totaled 470,000 square feet
Vacancy increased to 10.6% (primarily due to the delivery of 1.3 million square feet of new lease space
13 additional projects are under construction with more than 1.1 million square feet in Southeast Austin and Hays County
The far Northeast submarket had the largest absorption of lease space at 141,113 square feet
Office rents in the first quarter of 2019 have hit a record high at $41.83 per square foot per year for Class A according to Cushman & Wakefield and as reported by the Statesman recently. Local brokers are expecting the market to remain strong with continued job growth anticipated for the area. Vacancy is right around 10%, the same as it was Q1 2018.
CBRE measuring the market as an average rental rate also reports a record high of $37.62 per square per year. New construction is at an all time high as well with 5.6 million square feet of office space under construction.
NAI Partners another local brokerage firm is quoted as saying that “large leases dominated in 2018 and all indications point to that trend continuing in 2019.”
Ever wondered how much apartment you can afford if you are making the median income in a large U.S. City?
If you make the median income in Austin, Texas you should be able to afford a 751 square foot apartment and expect to pay about $1,369 according to new data from Yardimatrix.
Focusing only on Texas, renting in Plano on a median income gives you the most bang for your buck, with 1,137 square feet, the equivalent of a large 2-bedroom and 2.5-bath apartment. Irving comes in second with a 912-square-foot apartment with 2 bedrooms and 1.5 baths.
By comparison, other cities in Texas offer a 1-bedroom apartment that varies in size from renting in Houston (757 square feet), San Antonio (756 square feet), or Dallas (679 square feet).
I recently listed three (3) properties in East Austin that were previously single family rent homes. They are all in need of some TLC but are great investment properties. The activity for these properties has been amazing and I can confirm first hand that the East Austin single family market is hot!
The first (pictured above) is at 1183 Coleto and we are asking $285,000 (update – this property is now under contract). The next property is at 2935 Moss St and we are asking $299,000. The final property is located at 903 Mansell and is currently under contract as well. We are asking $340,000 for the Mansell property.
Email me at firstname.lastname@example.org if you are interested in selling your E. Austin property or if you are interested in purchasing 2935 Moss St.
Austin #11 in U.S. for new office development in 2019
Austin barely missed the top ten in new office development for 2019 with a #11 projected finish. 3.2 million square feet from 21 different projects makeup the Austin number. Oracle Phase II is the biggest office project expected to deliver this year at 420,000 square feet set for a December delivery. In comparison last year saw 2.7 million square feet in 34 projects delivered in Austin. The 2018 Oracle Waterfront campus was the largest project at 560,000 square feet.
Commercial Real Estate Projected Vacancy and Changes in Rent
The Texas A&M Real Estate Center has started providing more content for Commercial Real Estate markets in Texas that is very helpful to those of us following the Commercial Real Estate Markets.
This graphic for our Austin market shows that we are below the natural vacancy rate for all three Commercial Real Estate (CRE) types and that rents look like they will continue to rise. Retail rent growth however is projected to slow down in comparison to the last couple of years.
It’s helpful to keep in mind the definition of “Natural Vacancy Rate”. The natural vacancy rate is the average percentage of rental properties that are not occupied when there is balance in demand and supply.
Austin City Council has initially approved a program that would allow an increase in affordable housing development by relaxing regulations for properties that meet certain criteria.
District 4 Council Member Greg Casar introduced the plan earlier this month. “Our city’s potential to build more affordable housing for families is currently locked up by needless restrictions, … It’s time to change our policies so that every dollar of the successful $250 million affordable housing bond goes to help as many people as possible.”
The proposal would allow at least six (6) housing units to be built on any feasible lot by waiving density, setback, height and parking regulations. All zoning categories with the exception of industrial zoning would be eligible for these affordable housing projects.
The fourth quarter of 2018 ended on a high note for the Austin area Industrial market. Annual market absorption was 1.7 million + square feet and vacancy fell to 9.4%. Similar absorption levels have not been seen since 2012. Over 2 million square feet remains under construction with the fourth quarter delivery of new buildings totaling 222,800 SF. Net absorption exceeded 800,000 SF and the average annual asking rate is up to an average of $10.53/SF. Click here for CBRE Q4 2018 Austin Industrial Market Report.
Austin is number 19 in the U.S. in the category of high income earners that rent in lieu of home ownership. The news comes from RentCafe and a recent article, High Income Renters Study . High income earners are defined as $150,000 + annually.
Locally the number of high income households living in rentals multiplied by 3.2 in the past decade. This segment of the renter market is now the fastest growing in the U.S. with a 175% increase in the last ten years.
2018 ended with a bang for the Austin Texas office market. For the fifth consecutive year, Austin absorbed more than one million square feet. 500,000 additional SF were added in the fourth quarter of 2018 bringing the total office under construction to 4,913,727 SF. The average full service asking rate for the fourth quarter of 2018 was $36.64/SF – a record high. Q4, CBRE Research, Austin Office, 2018
A January 4, 2019 article posted on www.marketwatch.com indicates that an interest rate hike is likely forthcoming. Economists believe that the robust December 2018 jobs report will cause the Federal Reserve to raise interest rates in 2019.
A total of 300,000+ jobs were added in December, far exceeding economists’ forecasts of a 182,000 gain.
Prior to this jobs report economists were of the mind that rates would not change in the short term, but now many are expecting another hike in June.
Formed in 2013, AHV Communities develop, build and operate single family rental communities.
AHV Communities’ concept is simple – single family rental living. In their communities you rent the home instead of purchasing. AHV owns, manages, maintains and operates the community.
Residents live in single family homes with amenities that are typically only found in master planned communities or luxury apartments.
The financial benefits include no down payment, no long term debt, no taxes and no HOA fees.
And the commmunities’ on site management takes care of home and landscape maintenance.
In Central Texas AHV currently has communities including Rivers Edge, in Georgetown, and in San Antonio TX called Pradera. Projects coming soon to the area include Legacy in Pflugerville TX and Creekside in New Braunfels, TX.
We are currently looking for additional sites in the Central Texas area. Sites need to be 15-20 acres in size. Please send potential sites for consideration.
Kyle Texas pad sites for sale on the I-35 frontage Road north of Kyle Crossing (where Home Depot currently operates). Traveling southbound on I-35 these pad sites are located closer to I-35 exit and before Kyle Town Center, the project Endeavor Real Estate is marketing.
The sites range in size from 1.42 acres to 1.57 acres along I-35 to a 2.9 acre site that fronts FM 967 or South Loop 4 to sites across from Home Depot that start at 1.19 acres in size.
Contact Mark Pustka, Broker Associate with McAllister & Associates for more information. Email is email@example.com and mobile phone is 512 970-8359.
Recently Jimbo Cotton and myself sold a 17.5 acre parcel at 12419 Anderson Mill Rd to Travis County. It’s our understanding that the land will be added to the County’s land preserve. The property is to the west of RR 620 in NW Travis County.
On the other side of the adjacent parcel is land also owned by Travis County that is part of a preserve. $850,000 was the asking price.