Daily Briefing: 🚀 Big Buc-ee's on the Horizon & Austin's $25B Move 🏗️

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 Friday morning brief.

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

1. Buc-ee's hits San Marcos with 74,000 sq ft store, $5.9M in taxes 🚀

2. Austin's $25B transport projects fuel new Infrastructure Academy launch 🏗️

3. Austin Water's GoPurple aims to save 16M gallons/day, cut costs 💧

4. Joe Deshotel steers RECA towards sustainable growth in Austin 🌱

Commercial Real Estate and Economic Development

Here's everything we know about the Buc-ee's planned for San Marcos

Source: Propmodo

Summary: The San Marcos City Council has approved the construction of a Buc-ee's between the cities of San Marcos and Kyle, featuring a 74,000-square-foot facility, 120 gas pumps, and up to 175 spaces for a third party to develop electric vehicle charging spots. Construction is set to begin as soon as plans are approved, and the new store is expected to generate $5.9 million in property taxes and $3.2 million in net sales taxes over 15 years. The facility also plans to employ at least 175 full-time staff members and will incorporate a system to collect and store rainwater for use, a first for the company.

Why this matters: As this large-scale development in San Marcos will likely stimulate local economic growth and increase real estate demand due to increased job opportunities, commercial real estate professionals can leverage this information to anticipate potential market trends and provide strategic advice to clients interested in the area.

With $25B in projects on tap, new Austin infrastructure academy gets green light

Source: BizJournals

Summary: Austin is in the process of setting up an infrastructure academy to cater to the workforce needs of the city's upcoming $25 billion transportation-related projects. The city might also be investigating real estate options in the near future.

Why this matters: The plans for large-scale infrastructure developments in Austin, and the potential exploration of real estate options, could create a wealth of opportunities for commercial real estate professionals, stimulating investment, and increasing the value of commercial properties in the impacted areas.

CIM Group sells 215-unit District at SoCo apartment community in Austin

Source: Institutional Real Estate, Inc.

Summary: Clarksville, one of the historic neighborhoods in Austin, has been witnessing a slew of new real estate developments. Its median home price stands at $1,335,000, with a sales price decrease of 4.6 percent year over year. The neighborhood, known for its charming bungalows and craftsman-style homes, is seeing traction in both single-family homes and condo projects. A significant development is the Sixth&Blanco mixed-use development by McGuire Moorman Lambert (MML), scheduled to begin construction this year, set to include a luxury hotel, 10 private homes, and several retail and restaurant concepts.

Why this matters: This article underscores the rising importance of Clarksville as a growing hotspot in Austin's real estate market. Understanding these trends and developments can aid commercial real estate professionals in identifying opportunities for their clients, especially those interested in mixed-use developments and the historic charm that Clarksville offers.

Joe Deshotel hired at Real Estate Council of Austin

Source: REDnews

Summary: Joe Deshotel has been appointed as the Director of Policy and Government Affairs at the Real Estate Council of Austin (RECA). With decades of experience in public affairs and advocacy, Deshotel will be leading RECA's policy initiatives to promote sustainable growth and development in the Austin region.

Why this matters: Deshotel's appointment and his role in shaping policy for sustainable growth in Austin is vital information for commercial real estate professionals, allowing them to anticipate potential changes and developments that could impact the commercial real estate landscape.

Commercial Real Estate and Economic Development

InterFace Panel: Infrastructure Development Is Crucial to Industrial Supply Growth in Central Texas

Source: REBusinessOnline

Summary: The article highlights the importance of infrastructure development for industrial supply growth in Central Texas. Key factors such as land availability, interest rate movement, and permitting processes are secondary to infrastructural development. Economic development corporations in the area are prioritizing infrastructure to assist developers in adding necessary industrial space, driven by the population surge. Large-scale facilities like Tesla in East Austin and Samsung in the northern suburb of Taylor are exemplars of this trend. However, there is a lag in housing growth relative to population growth and significant electrical capacity needs.

Why this matters: Understanding and communicating the imperative role of infrastructure in industrial development can help professionals provide strategic advice to developers, thereby creating potential investment opportunities in the Central Texas region.

Austin Water gets approval from City Council on GoPurple program

Source: KXAN News

Summary: Austin City Council has approved a water conservation program, GoPurple, proposed by Austin Water. The initiative aims to save around 16 million gallons of drinking water per day by utilizing reclaimed water for non-drinking water needs, potentially avoiding water use fees and saving an estimated $10 million annually. Funding for the program will be provided by an additional community benefit charge of $0.15 per thousand gallons, equating to approximately $1.47 for the average residential customer. The city is also offering a voluntary rate program, Purple Choice and Purple Choice+, to residential and commercial customers to support the expansion of the reclaimed water system.

Why this matters: Commercial real estate professionals can use this information to inform their clients about potential savings via the GoPurple program and the upcoming changes in the water fee structure, allowing them to factor these costs into their investment strategies.