Daily Briefing: 🚀Austin Soars with Airfield 130 & Moov's Expansion! Find Out How! 🌆

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 Tuesday morning brief.

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

1. Patrinely, Realterm bet big on Austin with 439,300 sq ft Airfield 130 project. 🏗️

2. Moov Technologies expands in Austin, eyes global scale, ditches Arizona office. 🌐

3. Round Rock transforms 35,000 SF ex-library into downtown office gem. 📚

4. TSAHC fuels $31.5M Norman Commons for 156 affordable homes in East Austin. 🏡

Real Estate Market Dynamics and Development Projects

Patrinely and Realterm Start Austin Project

Source: Realty News Report

Summary: Patrinely and Realterm are collaborating on a 439,300 square foot speculative industrial project composed of four buildings in Southeast Austin, near State Highway 130 and McAngus Road. Set to complete by Q1 2025, the project, dubbed as 'Airfield 130', will offer 129 total dock-high doors across its four rear-load structures, each featuring 32' clear heights and 190' truck court depths. The buildings are strategically located with high visibility and tollway frontage access, with the 4 million square foot Tesla Gigafactory in close proximity.

Why this matters: The large-scale industrial project, due to its strategic location and scale, brings significant opportunities for commercial real estate professionals to cater to the growing demands of large companies and e-commerce businesses flocking to Austin, fueled by the city's remarkable population and job growth.

Balcones Real Estate Group targets cities south of Austin for new industrial hubs

Source: Austin Business Journal

Summary: Balcones Real Estate Group is planning to develop new industrial hubs in cities located south of Austin, which will add to the burgeoning pipeline of industrial projects in the Austin metro area. The article also includes a list of commercial property developers in the Austin metro.

Why this matters: This information can be used by Central Texas commercial real estate professionals to identify trending areas for industrial development, enabling them to advise their clients on viable investment opportunities or potential locations for business expansion.

Modular Builder Nearly Completes San Marcos Rental Community

Source: Connect CRE

Summary: Z-Modular, a self-development company, is close to completing Flatz 512, a modular apartment project in San Marcos. The project, which costs $62 million and is due for completion in August 2021, consists of 384 units across eight buildings and includes amenities like a pickleball court, fitness center, dog park, and electric vehicle charging stations. This unique construction method involves building the apartments in a factory and then shipping the parts to the site for assembly.

Why this matters: This article underscores the growing acceptance and implementation of modular construction methods in Central Texas, positioning real estate professionals to advise clientele interested in innovative, cost-effective, and time-saving building solutions.

City of Round Rock to Renovate 35,000 SF Former Downtown Library Building

Source: REBusinessOnline

Summary: The City of Round Rock, situated north of Austin, is set to renovate a 35,000-square-foot former library building in the downtown area, with office zones relocated to the east side of the building and a redesign of the connecting public paseo. McKinney York Architects are handling the design and Braun & Butler Construction is the general contractor. Construction is set to start in May.

Why this matters: This renovation project in a prime downtown location presents opportunities for commercial real estate professionals to scout for potential tenants looking for newly renovated office spaces.

Austin rents lose steam, with second-steepest decline in December among major U.S. metros

Source: Austin American-Statesman

Summary: Austin's apartment market has experienced the second-largest rent decline among U.S. metros in December, with a 12.5% drop compared to the previous year due to an oversupply of apartment units. Despite a lower occupancy rate (86% in January), the upcoming "fast" leasing season in February may help boost the occupancy rate. The rent drops represent a renter's market, allowing individuals to negotiate for more favorable deals amid an abundance of apartment options at reduced costs.

Why this matters: This trend underscores the significance of supply and demand balance in real estate pricing — an essential consideration for commercial real estate professionals as they advise their clients on investment and development opportunities in Central Texas amidst the current oversupply situation.

Commercial Real Estate Trends and Expansion

Moov Technologies puts Arizona office space on sublease market as it grows in Austin

Source: Austin Business Journal

Summary: Moov Technologies, an online semiconductor equipment marketplace, is looking to offload its real estate holdings in Arizona as it expands in Austin and internationally. This strategic move comes amidst a situation where many downtown Austin office buildings remain unoccupied. The article concludes with ABJ's list of top tech employers.

Why this matters: With a tech company like Moov Technologies expanding its presence in Austin, commercial real estate professionals can leverage this insight to identify potential trends and opportunities amidst downtown's office space market.

Affordable Housing and Community Development

Texas State Affordable Housing Corporation Awards $31.5M in Private Activity Bonds to Finance Norman Commons in Austin

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Source: Yield Pro

Summary: The Texas State Affordable Housing Corporation (TSAHC) has awarded $31.5 million in Private Activity Bonds to Foundation Communities for the construction of Norman Commons Apartments in East Austin. The development will result in 156 affordable housing units targeted at low-income households, with 16 units set aside for those at risk of homelessness. The apartments will be located next to Norman-Sims Elementary in an area that includes both residential and commercial real estate. Foundation Communities will also provide on-site resources, including free services such as afterschool and summer programs, a food pantry, and various classes.

Why this matters: The development of Norman Commons Apartments represents a significant investment in East Austin, an area of interest for commercial real estate professionals focusing on community developments and affordable housing initiatives.