Daily Briefing: 🏙️ Austin's Skyline & Science Hub: See What's Rising and Transforming! 🧬

Welcome, Construct Intel Austin!

As we kick off another week with our fingers on the pulse of the construction and commercial real estate world, we've got some groundbreaking news to share in our Thursday morning brief.

Here’s what you need to know about CenTex CRE Today:

1. The Domain's rezoning unlocks 46.7 acres for Austin's skyline transformation. 🏗️

2. Highpoint 2222: From 3M to life sciences hub, ready this year. 🔬

3. Historic East Austin building gets a modern coworking facelift by Forsite. 🌿

4. Leander Tech Park breaks ground, 270K sq ft of opportunity awaits. 🚀

Commercial Real Estate Development and Repurposing Projects in Austin

Austin City Council clears way for future redevelopment of The Domain

Source: Community Impact Newspaper

Summary: The Austin City Council has approved a rezoning development request for The Domain, opening up approximately 46.7 acres for redevelopment. Buildings are now allowed to be up to 420 feet tall with no limitations on the number of dwelling units, and a 12:1 floor-to-area ratio. The redevelopment may result in additional shopping, residential, hotel, industrial, and office spaces. The Domain has started a multi-million dollar renovation to elevate its status, attracting luxury retailers. Additionally, the City Council will consider creating a new zoning subdistrict for life sciences, lab, and biomedical spaces in the area.

Why this matters: Being abreast of these zoning changes might enable commercial real estate professionals to anticipate the future needs of clients looking for office, industrial or retail spaces and thus position their services accordingly in a rapidly developing North Austin.

Northwest Austin Highpoint 2222 campus to be move-in ready this year

Source: Newstalk Texas

Summary: Karlin Real Estate LLC is repurposing the former 3M campus in Austin, known now as Highpoint 2222, into lab spaces for the burgeoning life sciences sector of the city. This 156-acre, 1.1-million square foot property will also feature a 58,000 square foot amenity hub and a 75,000 square foot atrium with outdoor pavilions and courtyards. Stream Realty Partners is managing leasing services, with leases starting at 150,000 square feet. The campus is slated to be ready for occupation later this year.

Why this matters: This development highlights the growing demand for lab and life sciences spaces in Austin, offering commercial real estate professionals the opportunity to tap into this emerging market by targeting prospective clients in this industry.

Rise Coworking and Easy Street Capital Offices – Austin

Source: Office Snapshots

Summary: A 120-year-old historic structure in East Austin is being repurposed as the future home for Rise Co-working and Easy Street Capital. The 9,000 square foot building is being transformed by Forsite into an open, flexible office space with modern amenities like ample natural lighting, 'hanging gardens', and private phone booths.

Why this matters: This report illustrates the trend of redeveloping historic properties into modern workspaces in East Austin, a knowledge that could provide commercial real estate professionals a competitive edge in advising clients looking for unique and sustainable office spaces.

Leander Tech Park to break ground by year-end

Source: The Real Estate Center at Texas A&M University

Summary: St. John Properties Inc. is preparing to break ground on Leander Tech Park, a 50-acre mixed-use development in Leander, by the end of the year. The project will feature 270,000 square feet of flexible office space housed in eight single-story buildings, 18,850 square feet of retail space in two inline buildings, and three pad sites starting at 1.4 acres for potential freestanding retail establishments.

Why this matters: This development represents a significant addition to the commercial real estate market in Central Texas, providing new opportunities for commercial real estate professionals to expand their portfolios or secure prime locations for their clients in a rapidly growing area.

A look inside renovated Candlewood motel in Austin, soon to be permanent supportive housing

Source: Austin American-Statesman

Summary: The former Candlewood Suites motel in Northwest Austin is soon to open as Pecan Gardens, a permanent supportive housing complex for older adults, following its renovation. The property was bought by the city in 2021 for $9.5 million amidst controversy and protests from local community and business owners. The property was temporarily used as a COVID-19 isolation facility and faced issues from vandalism and structural problems. The city contracted Family Eldercare to manage the newly renovated facility, which will house 78 individuals who have experienced chronic homelessness and are over 55 or have a disability.

Why this matters: Understanding the city's approach to providing supportive housing options, and their willingness to repurpose commercial properties like hotels, can aid commercial real estate professionals in anticipating future trends and opportunities in the Austin area.

Infrastructure and Workforce Development Initiatives

Austin Mayor announces new infrastructure academy to build construction workforce

Source: KXAN News

Summary: Austin's Mayor, Kirk Watson, has announced the creation of a new Infrastructure Academy aimed at boosting the local construction workforce for major projects in the region. This unique public-private partnership will offer comprehensive training, recruitment, and placement services, as well as childcare support for participants. The academy aligns its programs with high-demand skills and hopes to facilitate the connection between job seekers and employers. The academy is a response to the city's need for thousands of workers for large infrastructure projects worth $25 billion, including the expansion of the airport and Project Connect. The city aims to grow its construction workforce capacity by 81% through 2040.

Why this matters: The formation of this academy is an indication of the growing need for infrastructure and construction in Austin, which could present numerous opportunities for commercial real estate professionals in identifying and sourcing potential development sites, as well as advising clients on investment decisions in the expanding infrastructure sector.

Economic Development and Strategic Initiatives in Texas

Gov. Abbott: 'Hardworking Texans,' strategic economic development tools key to state's success

Source: Real Estate Center at Texas A&M University

Summary: Texas' job growth is expected to outpace the national average, according to the Federal Reserve Bank of Dallas, and Governor Greg Abbott connects this success to the hard work of Texans and strategic economic development tools, including international partnerships such as a new one with France. Despite some signs of economic slowdown, the state retains its top business climate rating, with gas and petroleum wholesale, oil drilling, and gas extraction/petroleum refining being identified as the largest industries in terms of revenue.

Why this matters: The expected job growth and strategic economic development projects in Texas, such as the new partnership with France, present potential opportunities for commercial real estate professionals in Central Texas to capitalize on increased foreign business investment and trade.