Daily Briefing: 🌉 East Braker's $27M Makeover Meets Sunshine State Invasion! 🏢

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. I-35's endless dance with construction heralds Texas' booming future. 🚧

2. St. David's expansion quadruples South Austin's healthcare footprint. 🏥

3. East Braker Lane's $27M facelift to unlock North Austin's potential. 🌉

4. Florida brokerage plants its flag in Austin, eyes regional dominance. 🏢

Real Estate Development and Infrastructure Projects in Austin

Head of TxDOT says construction on the I-35 corridor between San Antonio and Austin will 'never conclude'

Source: Texas Public Radio

Summary: The Texas Department of Transportation (TxDOT) executive director, Marc Williams, announced that construction projects on the I-35 corridor between San Antonio and Austin are anticipated to be ongoing indefinitely due to constant growth in the state. The state of Texas recently surpassed 30 million residents with an incoming daily rate of 1,300 new residents. The San Antonio-Austin corridor is experiencing rapid growth, particularly in Comal, Hays, and Guadalupe counties. The TxDOT currently has a record $39 billion worth of construction projects statewide, which is expected to surpass $40 billion soon. Payment rates to contractors have also increased significantly, being 20% to 25% higher than the previous year. Key projects include the I-35 Northeast Expansion (NEX) Central, with 9.5 miles of elevated lanes in progress, and the I-35 Capital Express Central project in Austin, expected to begin in mid-2024.

Why this matters: Ongoing construction and infrastructure improvements in such a high-traffic area can mean potential disruptions, but also signal continued growth and demand in the region, which could be a selling point for commercial real estate professionals targeting businesses that want to be in the heart of Texas's growth and commerce hubs.

St. David’s snags Planning Commission approval to expand South Austin presence

Source: Austin Monitor

Summary: St. David’s HealthCare has gained Planning Commission approval to expand its medical office building near its South Austin hospital, aiming to increase the square footage nearly fourfold. The rezoning will permit the building to increase in height up to 120 feet, offering more options during site development. This expansion is part of St. David's larger development plan which includes additional hospitals and renovations across Austin.

Why this matters: Understanding the regional growth of medical facilities, particularly in South Austin, can help commercial real estate professionals identify potential opportunities for their clients in related sectors—like ancillary medical services, housing for medical staff, or commercial services for growing resident populations.

Crews break ground on East Braker Lane extension project in North Austin

Source: Community Impact Austin

Summary: A construction project that aims to alleviate traffic on East Parmer Lane in North Austin started on February 16. The venture includes the extension of a 0.75-mile segment of East Braker Lane from its current end at Dawes Place to Samsung Boulevard, beyond Pioneer Crossing Elementary School. The newly built four-lane roadway will feature bike lanes, sidewalks in both directions, a pedestrian crosswalk near the school, and center turn lanes for drivers turning left onto Taebaek Drive or Samsung Boulevard. The $27 million project is being overseen by the Capital Delivery Services department and is expected to be finished in around two years. It will link to a forthcoming Travis County project that will extend Braker Lane from Samsung Boulevard to Harris Branch Parkway, which is still in the design phase and not anticipated for completion until 2027.  

Why this matters: This infrastructure enhancement in North Austin, particularly the connection to Samsung Boulevard, could significantly improve access and potentially increase the property value in the area, making it a key area of interest for commercial real estate professionals and their clients.

Multifamily development to come up by Q2 Stadium

Source: Newstalk Texas at Real Estate Center, Texas A&M University

Summary: Turnbridge Equities LLC and the Burt Group are collaborating on a sizable multifamily real estate project near Q2 Stadium in Austin, Texas. The plan consists of constructing 825 apartment units on two sites, which includes four office buildings and an 8.5-acre tract. The combined valuation of these sites is nearly $43 million. If approved, zoning changes would permit building heights up to 491 feet for mixed-use residential construction.

Why this matters: The information about this prospective development can be used by commercial real estate professionals to identify potential investment opportunities and trends in the Austin area, particularly in the multifamily and mixed-use sectors.

Commercial Real Estate Market Expansion and Opportunities

Florida-based brokerage opens regional HQ in Austin with expansion plans

Source: Austin Business Journal

Summary: Florida-based real estate brokerage firm is expanding its reach by opening a regional headquarter in Austin, marking its third new office outside of Tampa in the last 18 months. The article additionally offers a list of commercial property management firms in the Austin area.

Why this matters: The introduction of a new brokerage firm to the Austin market can increase competition, presenting an opportunity for local real estate professionals to differentiate their services and deliver value to their clients by staying informed about such market developments.

Checking Out the Lake Austin Spa Resort — What It’s Really Like to Stay at the Pampering Wellness Retreat in the Hill Country

Source: PaperCity Magazine

Summary: The Lake Austin Spa Resort, a renowned wellness retreat on the edge of Lake Austin, has recently undergone numerous upgrades under its new owner, DiamondRock Hospitality, a real estate investment trust. The changes include updates to the property's guest accommodations, spa, and surrounding grounds. Also, the spa has launched a partnership with Italian sustainable skincare company Comfort Zone, becoming the first in the U.S. to offer an interactive, express-style facial treatment called FACE SPAce.

Why this matters: The acquisition and subsequent development of the Lake Austin Spa Resort by DiamondRock Hospitality highlight the potential for commercial real estate professionals to explore similar ventures in the wellness and hospitality sector, an increasingly profitable niche in the Austin area.