Daily Briefing: 🏙️ Iconic Moves: Austin’s 30-Story Student Housing & Dara's Grand Entrance! 🌟

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

1. 30-story student-housing Icon rising in Austin by MDL Group! 🏗️

2. Council tweaks zoning, adding $3M to Hyatt West PUD’s costs. 💰

3. Utility bills climbing as Austin Council approves rate hikes. ⚡

4. Elite agent Dara Allen brings her luxury real estate prowess to Austin. 🌆

Real Estate Development & Housing

30-Story Student-Housing Property Coming to Austin, Texas

Source: Austin Business Journal

Summary: MDL Group, a New York-based company, has started constructing the Icon, a 30-story student housing property in Austin, Texas. The property, located at 2200 San Antonio St., will feature 216 units with 555 beds and is built atop a four-story underground structure. The company broke ground in April with vertical construction to commence soon.

Why this matters: Understanding the development trends of student housing in Austin can provide commercial real estate professionals with insight into market demand and potential opportunities for investment in similar projects.

Council OKs first reading of zoning change but Austin Water wants more

Source: Austin Monitor

Summary: The Austin City Council has approved an amendment to the Hyatt West Planned Unit Development (PUD) that would eliminate the minimum parking requirement for the West Parcel, paving the way for an increase in multifamily housing. Despite this approval, there remains contention over whether the developer will connect to the city's reclaimed water line. The developer is seeking to reduce over half of the initially planned 670 parking spaces and construct multifamily housing above the second story of a 14-story building, with only 327 underground parking spaces. Adjustments to the plan and connection to the reclaimed water line would add approximately $3 million to project costs.

Why this matters: The article underscores the growing emphasis on sustainable water practices in development projects, a consideration that can impact project costs, approval processes, and community reception. Real estate professionals can leverage this information to advise clients on the increasing importance of sustainable measures in the planning and implementation of commercial and residential projects.

Here’s Where to Find New Apartments in Austin in 2023

Source: RentCafe rental blog

Summary: Austin is experiencing a boom in new apartment construction, with over 23,000 new units projected to open in 2023, presenting a wide range of options for renters.

Why this matters: With the anticipated influx of new residential spaces, commercial real estate professionals can leverage this data to identify potential commercial opportunities in areas of high residential growth.

@Properties | Christie’s International Real Estate, Dara Allen, Leaves Compass for Austin Expansion

Source: Business Wire

Summary: Dara Allen, a luxury real estate leader and broker associate, has announced her professional move to @Properties | Christie's International Real Estate as the Executive Vice President of Strategic Growth. Allen and her team have achieved over $300 million in sales since 2019. She represents the top 0.25% of agents through Elite 25, Austin’s most prestigious network for luxury agents.

Why this matters: This move underscores Austin's growing attractiveness and underscores the city's capacity for strategic growth, suggesting opportunities for commercial real estate professionals to expand their luxury portfolios in the region.

City Comparison & Commercial Growth

Portland Oregon Vs Austin Texas – Which City Is Best For You?

Source: Austin Business Journal

Summary: Austin's tech sector continues to boom, with tech companies acquiring or leasing significant office spaces, pushing commercial property demand and prices upwards. This growth trajectory is driven by factors like Austin's business-friendly environment, diverse talent pool, and high quality of life. The strong tech market is attracting developers who are planning new projects, creating an active commercial real estate market.

Why this matters: With Austin's tech-driven commercial real estate boom, professionals can leverage this trend by focusing their efforts on tech companies seeking office spaces and developers looking for suitable land parcels for new projects.

Utility Rates & Services

A new set of rates and fees is set to hit Austin utility customers. Here's why.

Source: Austin Business Journal

Summary: Austin City Council's recent approval of the annual budget entails a rise in utility rates and fees, affecting water, electricity, and trash services. This includes a monthly increase of about $2.35 for Austin Energy customers and about $2.65 for Austin Water customers. In addition, Austin Resource Recovery services also saw an increase of about $1.65 per month. These changes are part of a strategy to cover rising operating costs and support community benefits programs, including assistance for low-income residents. Overall, the average resident's monthly costs will increase by around $14 or $172 annually.

Why this matters: Understanding these changes can assist commercial real estate professionals in advising their clients on the true cost of operating in Austin, providing a more comprehensive picture of the financial obligations associated with commercial property ownership or tenancy in the city.