Weekend Roundup: 💰 $1B Cold Bet & Austin's Zoning Shake-Up! 🏗️

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

1. Related bets $1B on cold storage, eyes $65M Austin facility. 💰

2. Austin's Council revisits single-family zoning; 3 units/lot? 🏘️

3. I-35 expansion halted by Austin Council, environmental concerns rise. 🌳

4. Regions Bank backs Austin's 71 Logistics with $17.8M loan. 🏗️

Real Estate and Construction Developments

Cold storage project outside Austin is part of Related's $1B bet on sector

Source: Austin Business Journal

Summary: Related, a prominent New York developer, is investing $1 billion in the cold storage real estate sector with its initial projects in Central Texas and Florida, including a $65 million facility planned outside Austin. This major investment heralds a boost to the local economy, with significant implications for the commercial real estate market in the region.

Why this matters: With the rise of investment in cold storage facilities in Central Texas, commercial real estate professionals have a new sector to focus on, providing them the opportunity to diversify their portfolio and cater to a burgeoning market, thereby enhancing their professional growth and client value.

Austin’s Single-Family Zoning Reform Heads for Public Hearing

Source: Austin Towers

Summary: Austin's City Council is set to review zoning code changes that could have significant impacts on single-family housing in the area, with plans to potentially legalize the construction of up to three housing units on every single-family lot, paving the way for increased density and diverse housing options.

Why this matters: With an understanding of these potential zoning changes, real estate professionals can advise their clients on emerging opportunities for property development and investment in Austin, capitalizing on the move towards increased housing density.

MAP: Which Austin metro zip codes had the most apartments built in recent years?

Source: REBusinessOnline

Summary: Regions Provides $17.8M Construction Loan for Austin Industrial Project Regions Bank has offered a $17.8 million construction loan for a new industrial project in Austin named 71 Logistics Center. The speculative project will be developed by Atlanta-based MDH Partners and will be located near Austin-Bergstrom International Airport. The facility will sprawl over 45 acres and feature a 216,000-square-foot building with 142 parking spaces, 54 trailer parking spaces, an ESFR sprinkler system, and 32-foot clear heights. The project, managed by general contractor ARCO/Murray, is expected to be completed by the second quarter of 2024.

Why this matters: The article demonstrates the continued investor confidence in Austin's industrial real estate sector, providing a useful talking point for real estate professionals when advising clients on potential investment opportunities or market trends in Central Texas.

Economic and Market Trends

Austin rental prices continue to fall from record highs

Source: KXAN

Summary: Austin has seen the largest decline in rental prices among U.S. cities, with rates dropping over 14% in the past year according to a report by Rent.com analysts; despite the decline, prices remain higher than in February 2021, when rates began to surge; the decrease in prices is partly due to increased vacancy rates, which have risen to about 8% from around 5% in 2022; Austin's extensive construction efforts have also played a role, as it was ranked number one nationally for the number of new multifamily and single-family units permitted for construction last year.

Why this matters: The cooling rental prices and increasing vacancies in Austin present an opportunity for commercial real estate professionals to negotiate better lease terms and amenities for their clients, particularly in the multifamily housing market.

Infrastructure and Transportation

Austin City Council pushes for pause on I-35 expansion, citing air quality concerns

Source: The Austin Monitor

Summary: The Austin City Council, with a 7-3 vote, is advocating for a delay on the $4.5 billion Interstate 35 expansion due to concerns about environmental and air quality impacts. The resolution requests that the Texas Department of Transportation and Capital Area Metropolitan Planning Organization withhold funding until two environmental studies are completed. However, some argue that the delay could risk the loss of funding. The council also needs to identify a source of funding for $450 million to construct caps over parts of the expressway. The expansion has both supporters and opponents, with many local civic and business groups, including the Real Estate Council of Austin, backing the project.

Why this matters: Understanding the potential delay and its implications on the I-35 expansion project can help commercial real estate professionals in Central Texas to anticipate changes in traffic patterns and infrastructure, which could impact property values and investment opportunities in the vicinity.