Daily Briefing: 🌿 Eco-Homes, Zoning Surprises & Indeed's Real Estate Dance 💼

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

1. Austin reshuffles zoning with Land Development Code changes—homeowners, take note! 📜

2. Indeed's 98,000 sq. ft. Austin office space hits the sublease market. 🏢

3. La Vista de Lopez, Austin's quirkiest tower, starts construction on I-35. 🏗️

4. AMLI unveils eco-friendly, 406-unit community in Austin's Mueller neighborhood. 🌿

Real Estate and Development

Why did the City of Austin send you a Land Development Code notice in the mail?

Source: KXAN News

Summary: The City of Austin has mailed public notices to over 725,000 individuals about proposed changes to its Land Development Code. The three main changes being proposed include allowing up to three housing units on a single-family zoned property, revising regulations for properties with two housing units, and lifting restrictions on the number of unrelated adults residing in one house. The city took this action following a lawsuit over inadequate notification of zoning changes. Further proposals are expected in the first half of 2024. Knowledge of these proposed changes is essential for commercial real estate professionals in Central Texas, as these changes can significantly impact investment strategies, property development plans, and client recommendations.

Why this matters: This knowledge will allow professionals to better navigate the market, provide clients with up-to-date advice, and position themselves as proactive and well-informed in the face of changing regulations.

Indeed Brings Austin, Texas, Office Space to Sublease Market

Source: Commercial Real Estate Direct

Summary: Indeed, the job search engine, has put up 98,000 square feet of office space in Austin, Texas, for sublease. The space spans floors 27 through 29 of the 36-story Indeed Tower. Indeed moved into the 733,000-square-foot property in August and its lease expires in 2034. CBRE is tasked with marketing the space.

Why this matters: This new available space in a prime location provides commercial real estate professionals with a significant opportunity to find clients needing sizable, high-quality office space and could also indicate shifts in the market dynamics due to changes in office space demand.

MDH Partners to Build 216,000-SF Industrial Property Near Austin, Texas, Airport

Source: Commercial Real Estate Direct

Summary: MDH Partners, an Atlanta company, plans to construct a 216,000-square-foot industrial property near Austin-Bergstrom International Airport, at the intersection of State Highway 71 and Norwood Lane. The site, named 71 Logistics Center, will feature 32-foot clear heights and parking for 142 vehicles.

Why this matters: This development signifies a growing demand for industrial space in the Austin area, presenting an opportunity for commercial real estate professionals to find clients interested in these types of properties.

With I-35 expansion, Austin gem Nature's Treasures is being forced to move

Source: Austin Business Journal

Summary: Austin's real estate market is booming, with a significant increase in both residential and commercial property sales. The city has been rated as one of the top places to live in America, leading to an influx of newcomers and a surge in property prices. Developments in infrastructure and technology sectors are further attracting businesses, leading to a rise in demand for commercial spaces. However, the city is facing an inventory crunch, with demand outpacing supply.

Why this matters: The current real estate market trend in Austin presents an opportunity for commercial real estate professionals to leverage the rising demand for commercial spaces, especially in the tech sector. Understanding the city's infrastructure and demographic trends can help professionals better advise their clients and strategically invest in commercial properties.

Austin’s Weirdest Tower Is Officially Under Construction at La Vista de Lopez

Source: Austin Towers

Summary: Construction has begun on an unconventional nine-story senior housing tower, named La Vista de Lopez, situated on a small plot of land overlooking I-35 at 809 East Ninth Street. The project presents a compact design, housing 34 residences with some measuring a compact 500 square feet. The building is allowed to rise so high due to the provisions of Austin's Affordability Unlocked development bonus program, as it will offer affordable housing to seniors. The Guadalupe Neighborhood Development Corporation, a local nonprofit with a mission to prevent displacement, is behind this project, funded by federal, state, and local affordable housing dollars. The project site will also accommodate the historic Routon-Alvarez-Lopez House, offering a unique example of adaptive reuse, and upon completion, will serve as a community space for the seniors. The project is expected to finish in 2025.

Why this matters: This innovative approach to developing affordable senior housing in a densely populated area demonstrates a creative solution to the growing need for affordable housing in Central Texas, providing real estate professionals with an example of successful, high-density development on small plots of land.

AMLI Debuts Upscale Austin Community

Source: Multi-housing News

Summary: AMLI Residential has opened AMLI Branch Park, a 406-unit community in Austin's Mueller neighborhood. This constitutes the sixth Austin-area development from AMLI in the Capital Plaza submarket, expanding the company's Austin portfolio to 13 properties, which total around 4,250 units. The community, designed to be eco-friendly, with plans to achieve LEED Platinum and Austin Energy Green Building certifications, offers modern amenities including a coworking business center, swimming pools, a clubhouse, fitness center, dog park, beer garden, and 20,000 square feet of future retail space. AMLI Branch Park construction began in March 2021 and was financed via a $22 million loan from Wells Fargo Bank.

Why this matters: The development of AMLI Branch Park demonstrates the growing demand for upscale living communities in Austin, with a focus on sustainability and modern amenities. Commercial real estate professionals can use this insight into the market's direction to advise clients on investment opportunities in similar properties or to anticipate tenants' demands when managing residential properties.

When will real estate get back to all time highs in Austin proper?

Source: Reddit /Austin

Summary: The article is a community-driven discussion post on Reddit by a user contemplating the future of Austin's real estate market, specifically regarding the recovery of single-family home prices to their all-time highs of early 2022. The user speculates that prices might reach these highs again within the next 2-4 years and expresses hope for a reduction in mortgage rates due to potential federal rate cuts in Q2 of 2024. This user is seeking opinions from other Austin real estate enthusiasts on this matter.

Why this matters: Understanding the sentiments and predictions of local community members can provide commercial real estate professionals with a grassroots perspective on market trends, informing their strategies and advice to clients looking to invest in Austin's real estate market.

Community and Lifestyle

Austin Designated the Fourth Most Educated US City

Source: Austin Daily News

Summary: Austin, the capital of Texas, has recently been distinguished as the fourth most educated city in the United States, marking a significant achievement for the city's commitment towards education and intellectual growth.

Why this matters: The recognition of Austin's educational prowess can be leveraged by Central Texas commercial real estate professionals to attract businesses and investors seeking a well-educated workforce, thus adding value to their property offerings and enhancing their professional growth in the region.