Daily Briefing: 🚀 Skyrocketing Austin: HOME Act & St. Elmo's Makeover Set to Transform the City! 🏙️

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

1. Austin's new 30MW Skybox-Prologis Data Center boosts tech hub status. 💻

2. Ryan Cos.' 213-Unit Senior Housing in Central Austin tops out. 🏗️

3. Austin leverages private developers for public safety spaces, a novel approach. 🚒

4. City of Austin invests $15M in downtown homeless shelter acquisition. 🏢

Urban Development and Housing Policies in Austin

Opinion: The HOME Act Will Help Keep Austin Affordable and the American Dream Alive

Source: Austin Chronicle

Summary: The article discusses the potential implications of the HOME Act proposed by Austin City Council Member Leslie Pool, which would allow the construction of three housing units on a single residential lot. The author argues that this legislation could play a key role in addressing Austin's affordability crisis, enabling more low- to middle-income individuals and families to achieve homeownership. Drawing parallels to similar successful policies in Minneapolis and Houston, the author expresses optimism that the HOME Act could help to counteract the price inflation that has accompanied Austin's rapid economic growth.

Why this matters: Understanding the potential impact of the HOME Act on residential real estate in Austin can enable commercial real estate professionals to better anticipate market trends and advise their clients on potential investment opportunities.

Austin's Housing Landscape Undergoes Unprecedented Transformation

Source: Austin City's Planning Department's Demographic Division

Summary: Austin has witnessed a remarkable decade of growth in its housing landscape, adding over 90,000 housing units between 2010 and 2020, a figure that surpasses most major U.S. cities. However, the rate of unit production has seen a decline. Despite the rapid growth of housing units in the metro area, Austin's share in the region's total housing has been decreasing due to the city's stable contribution. Additionally, the addition of new units has led to an increased proportion of rental units in the city's housing stock. The city has also seen the fastest growth in occupied housing units among large U.S. cities.

Why this matters: Understanding Austin's rapid housing growth and the increasing trend towards rental units can help commercial real estate professionals better predict market trends, identify investment opportunities, and advise their clients effectively, particularly those interested in rental properties or developing multifamily housing.

Real Estate and Infrastructure Projects in Austin

Leifer makes strides on gentrifying St. Elmo district in Austin

Source: The Real Deal

Summary: Leifer Properties is advancing in its plans to redevelop a 4.3-acre site in South Austin's St. Elmo district. The proposal includes a mix of creative office space, residences, and retail space, with a rezoning request in progress to allow for increased building height and dwelling units. If passed, this would be the first phase of a larger development plan from Leifer, who own a total of 11 acres in the area. The current property, worth $10.2 million, houses a warehouse that will be repurposed into office space, with the residential and retail portions being developed separately. The plans add to the ongoing transformation of the St. Elmo district, which already hosts an array of businesses and residential projects.

Why this matters: The information about Leifer's plans provides insight into the ongoing transformation of South Austin's St. Elmo district, providing commercial real estate professionals with a broader understanding of the area's development trajectory and potential investment opportunities.

Cap Metro settles with city on East Austin real estate deal that paves the way for wastewater project

Source: Austin Monitor

Summary: The Capital Metropolitan Transportation Authority (Cap Metro) has approved the sale of a small parcel of land in East Austin to the City, paving the way for a critical wastewater project. The Walnut Interceptor Odor and Corrosion Improvements capital project will resolve persistent odor and corrosion issues in the Walnut and Little Walnut wastewater basins. Construction is planned to begin in 2024 and conclude in 2025. For just under $1.5 million, the City will acquire 1.385 acres from Cap Metro's 44-acre property along Loyola Lane, a future transit-oriented development site and station complex. Cap Metro is comfortable with the arrangement as long as the project doesn't disrupt its development plans for the remaining property.

Why this matters: Given the location of the sold land and Cap Metro's future plans for transit-oriented development, this deal can spark new opportunities for commercial real estate professionals in Austin to focus on the area, anticipating potential growth and commercial activity following the improvement of local infrastructure.

Economic Analysis of Living Costs and Quality of Life

America's most expensive cities ARE worth the money: San Jose, Austin, and EVEN crime-ridden San Francisco offer best quality of life thanks to high wages, study shows

Source: KXAN News

Summary: Austin is ranked among America's most expensive cities that offer the best quality of life due to high wages, according to an analysis by the Ludwig Institute for Shared Economic Prosperity (LISEP). The report, which assesses the economic well-being of middle and working-class residents in the 50 largest metro areas, found that high living costs in cities like Austin, San Francisco, and San Jose are more than offset by higher wages. The LISEP ranking also took into account the costs of basic goods and services like housing, food, and childcare, and how much those prices have increased over the past two decades.

Why this matters: This insight into Austin's high living standard can be utilized by commercial real estate professionals to position the city as an attractive destination for businesses and investors, leveraging the fact that the high cost of living is balanced by higher wages and a robust economic quality of life.