Weekend Roundup: 🏗️ Austin's $1.4B Convention Center Revamp & Blackstone's Multifamily Masterstroke! 🏢

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 Monday morning roundup.

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

1. Austin's Convention Center set for a $1.4 billion, space-doubling expansion in 2025! 🏗️

2. Blackstone eyes North Austin for a major multifamily residence development project. 🏢

3. Brookfield's 792,139 SF industrial project breaks ground, transforming East Austin. 🏭

4. 333 Guadalupe Street ripe for high-value redevelopment in Austin's heart. 🌆

Major Commercial and Industrial Developments

Austin Convention Center Expansion to Begin in 2025

Source: Trade Show Executive

Summary: The Austin Convention Center is set to undergo a $1.4 billion expansion project slated to commence in 2025 and complete by late 2028. The project aims to double the rentable space, adding an additional 709,000 net square feet. A vertical design will facilitate retail businesses at ground level, with exhibition space below, creating a community-centric space. The upgrade will be facilitated by the team behind the Seattle Convention Center Summit and is expected to draw more hotels to the city, thereby boosting Austin's capacity for large-scale events. The project will be funded by the Austin Convention Center revenues and the municipal Hotel Occupancy Tax, and is projected to generate an additional $282 million in economic impact. The convention center's expansion coincides with Austin's airport expansion and light rail system development.

Why this matters: The expansion of the Austin Convention Center and the expected influx of new hotels will significantly increase Austin's commercial real estate market value and provide professionals in the sector with numerous opportunities for investment and development.

Brookfield Properties Breaks Ground on 792,139 SF Industrial Project in East Austin

Source: REBusinessOnline

Summary: Brookfield Properties has begun construction on a large-scale industrial project, Park 290, located in East Austin. The project encompasses four buildings totaling 792,139 square feet, with individual buildings varying from 76,000 to 321,000 square feet. Noteworthy features include 32- to 36-foot clear heights, generous parking for cars and trailers, and LEED certifications. CBRE is overseeing the leasing, and the project is expected to be finalized by year-end.

Why this matters: The commencement of this large-scale industrial project indicates an upturn in industrial real estate development in East Austin, providing commercial real estate professionals with new opportunities for their clients and an enhanced understanding of the market's trajectory.

Residential and Multifamily Housing Developments

Blackstone subsidiary wants to develop hundreds of multifamily residences in N. Austin

Source: Austin Business Journal

Summary: Link Logistics Real Estate Management LLC, a Blackstone Inc. subsidiary, has submitted filings with the city to rezone a property in North Austin for the development of multifamily residences. This move signifies potential growth towards the city's already expanding apartment inventory.

Why this matters: This news could provide commercial real estate professionals with insights into potential investment opportunities and market growth in the multifamily sector in the North Austin area.

New Braunfels Apartments Set for March Move-In

Source: Connect CRE

Summary: A new 240-unit apartment complex, the Devereaux, is nearing completion in New Braunfels, off Loop 337, with move-in readiness set for mid-March. The units, varying from studios to three-bedroom apartments, are primarily one and two-bedroom configurations, with rents ranging from $1,275 to $2,300 a month. The $51 million project, managed by Village Green, offers amenities such as a resort-style swimming pool, fitness center, dog park, outdoor kitchen, and grilling stations, along with secure parking options.

Why this matters: Understanding the nuances of this project, like rent ranges, amenities offered, and unit distribution, can allow real estate professionals to better gauge market trends in multifamily properties in Central Texas, which can be invaluable in advising clients on investment opportunities or pricing strategies.

Urban Planning and Infrastructure Developments

AUSTIN | 333 Guadalupe Street (Hobby Building) Redevelopment | FT | FLOORS

Source: The Statesman

Summary: The 1.75-acre full city block, owned by the state and known as the Hobby Building, is outside Capitol view corridors that limit the heights of some downtown developments, making it an ideal spot for a potential office skyscraper, high-rise apartment complex, or a mixed-use project. The estimated replacement value of the 419,000-square-foot building is $152 million, excluding the value of the lot itself or potential bidding war.

Why this matters: This information opens a prime opportunity for commercial real estate professionals to advise clients looking for high-value investments in Austin as this location could be ideal for a potential redevelopment project.

Austin Regional Clinic expansion to open doors December 2025

Source: Newstalk Texas

Summary: Austin Regional Clinic (ARC) is set to redevelop next to their existing facilities on First St, with the new medical office slated to be located at 708 W. Ben White Blvd. The new office will contain a sizable two-story medical office building and a separate four-story parking garage. The first level will feature an ambulatory surgical center, and various specialty clinical spaces will be distributed throughout. Construction is planned to begin in Sept. 1, with an expected completion date in December 2025.

Why this matters: This expansion by ARC suggests a growing demand for medical properties in Austin, which commercial real estate professionals can capitalize on by identifying similar opportunities for their clients in the healthcare sector.

Engineering firm chooses Austin as new home

Source: Newstalk Texas

Summary: Phoenix-based Meade Engineering, renowned for its work on significant data centers, is setting up a 3,400-sf office on S. Capital of Texas

Hwy, Austin, after signing a four-year lease with the aid of the brokerage firm HPI. The engineering firm is recognized for its electrical infrastructure design for mission-critical facilities and notably completed design work for Switch Inc.'s 32-acre data center adjacent to Round Rock's Dell Technologies Inc. campus.

Why this matters: The entry of Meade Engineering into Austin can be seen as a testament to the city's attractive commercial real estate market and offers a potential new client base for commercial real estate professionals, particularly those involved in office spaces and data center properties.

Bastrop residents ask for expanded recreation facilities as city eyes new Rec Center

Source: Austin American-Statesman

Summary: Residents in Bastrop, Texas have urged the City Council to expand the Recreation Center's facilities and programming. The city, in conjunction with the Bastrop Economic Development Corporation, plans to build a new rec center on 80 acres of land south of Texas 71 near Technology Lane. The new facility will serve as a centerpiece for a multi-field sports complex, intended to draw sports-centered tourism to the area. The city also plans to look at facilities near the current Rec Center for overflow and is considering partnering with nearby churches for drop-in child care.

Why this matters: The planned Rec Center and sports complex, due to its large size and intended role as a tourist attraction, may result in increased commercial and residential demands in the nearby areas, providing potential investment and development opportunities for commercial real estate professionals.