Weekend Roundup: 🏗️ Austin's Game Changers: Towering Triumphs & Transit Transformations 🚈

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 skyline reshaped by Gensler's "trapezoidal" skyscraper, towering at 865 feet. 🌆

2. Austin to ditch parking podiums, paving way for pedestrian-friendly downtown. 🚶

3. HPI expands Austin empire, acquires Barton Oaks Plaza II and III. 🏢

4. Austin Transit Partnership accelerates with Light Rail open house at UT. 🚈

Real Estate and Urban Development

"Trapezoidal" skyscraper by Gensler nears completion in Austin

Source: Dezeen

Summary: The construction of a "trapezoidal" skyscraper in downtown Austin, designed by US studio Gensler, is nearing completion. The 845-foot-tall skyscraper, known as Sixth and Guadalupe, is a mixed-use development featuring residential, office, and retail spaces. The design structure comprises three stacked volumes that decrease in width as it rises, encapsulating two glazed volumes and an opaque podium. The project, which is shaped by the Texas Capitol View Corridors legislation, is expected to be completed in Summer 2024.

Why this matters: Knowledge of this ambitious project is critical for commercial real estate professionals in Central Texas because it exemplifies the type of innovative, mixed-use development that is reshaping Austin's skyline and could influence client interests and market trends.

Downtown Austin’s Parking Podium Problem Could Soon Be History

Source: Austin Towers

Summary: Austin City Council's recent amendments to the Land Development Code could revolutionize downtown parking regulations, potentially phasing out the prevalent use of parking podiums in downtown towers. Changes include counting a portion of above-ground structured parking in the development’s Floor Area Ratio calculation, reducing the maximum allowable motor vehicle parking for a downtown development, and requiring developers to separate parking from gatekeeper requirements for the Downtown Density Bonus Program. This could result in a more pedestrian-friendly downtown environment with fewer large above-ground parking structures.

Why this matters: Being aware of these amendments will enable commercial real estate professionals to give thorough and updated advice to their clients interested in developing or investing in downtown Austin, potentially affecting project designs and costs.

HPI nabs office buildings in Southwest Austin

Source: The Real Deal

Summary: HPI Real Estate Services & Investments, a local Austin firm, has acquired two office buildings, Barton Oaks Plaza II and III, in Southwest Austin, adding to the city’s commercial real estate market. This acquisition boosts HPI's portfolio to approximately 3.9 million square feet across 53 buildings, making them the sixth-largest commercial property owner in the Austin metro. Despite a rise in the city's office vacancy rate to 21.8%, HPI plans to maintain the buildings' strong occupancy rate of 85%.

Why this matters: This acquisition demonstrates the continued investment and growth in Austin's commercial real estate sector, offering commercial real estate professionals a positive outlook in the local market and underscoring the importance of strategic leasing approaches to maintain high occupancy rates.

Wilsonart Opens Austin, Texas, Showroom and Distribution Center

Source: Retrofit Magazine

Summary: Wilsonart has opened a 45,000-square-foot showroom and distribution center in Austin, Texas, marking the company's 21st distribution center. This facility includes a 10,000-square-foot Showroom and Design Center and a 35,000-square-foot warehouse with a wide array of Wilsonart Engineered Surfaces. The center aims to offer superior service to customers in Central Texas, facilitated by its strategic location offering access to major roadways and manufacturing facilities.

Why this matters: The opening of this major facility underscores the growing commercial development in Central Texas, and its vast selection of materials can serve as a valuable resource for real estate professionals seeking top-tier finishes for their commercial and residential properties.

Infrastructure and Transportation

Austin Transit Partnership hosts open house at UT, talks public transportation plans

Source: The Daily Texan

Summary: The Austin Transit Partnership recently hosted an open house to discuss the ongoing plans for the Austin Light Rail implementation. This partnership is tasked with designing, constructing, and securing federal funds for the rail system. The rail system is part of the city's effort to enhance public transportation and connectivity for residents, particularly those living in Central Austin. Since its initial launch, the plan has been updated, reflecting new designs and station data, with the partnership hosting several open houses to gather public feedback and communicate changes.

Why this matters: The introduction of the Austin Light Rail system could potentially change commuting patterns and property demand in Austin, allowing commercial real estate professionals to advise clients on strategic investment locations along the planned rail routes.

Round Rock’s Transportation Master Plan

Source: Round The Rock

Summary: The City of Round Rock is executing a Master Transportation Plan developed in 2017. The Plan, which aligns with the city's growth and development vision, aims to improve transportation corridors, ensure safe pedestrian and bicycle travel, integrate trails and transit into the plan, increase safety measures in transportation planning, and address traffic congestion among other goals. The Plan also includes a map of proposed future roadways in the area.

Why this matters: This plan, aligning with Round Rock's growth vision, indicates strategic locations for property development and investment opportunities, thus aiding commercial real estate professionals to make informed decisions about property investments in this region.

Local Business and Community Service

Recently annexed areas in Austin could vote to leave city this spring

Source: Community Impact Austin

Summary: Recently annexed areas in Austin could vote to disannex from the city this spring due to House Bill 3053 passed by Texas lawmakers. This bill requires large cities to hold disannexation elections for some recently annexed areas. The law specifically targets cities with 500,000 residents or more and applies to populated areas annexed between March 3, 2015, and December 1, 2017. In Austin, six such areas, totaling over 1,100 acres, will face this disannexation vote on May 4. If residents vote to disannex, changes in public services, city fees, and a potential increase in property tax burdens for remaining Austin taxpayers can be expected.

Why this matters: The potential disannexation could lead to shifts in public services and tax burdens in the affected areas, valuable information for commercial real estate professionals when advising clients on potential investments or property developments.

Lighting the way: Trimlight New Braunfels offering permanent LED holiday lighting for all life’s moments

Source: Community Impact

Summary: Trimlight New Braunfels, a company offering customizable LED lighting solutions for homes and businesses, has been expanding its client base from residential homes to businesses like wedding venues and car washes. Using an app, customers can control the lights, set them to scheduled timers, create endless patterns, and more. The company recently completed a large-scale project with the San Antonio Zoo and offers lifetime warranties on all products, which include both residential and commercial lines. Trimlight New Braunfels prices its product by the linear foot of the roof line, and the products range from $19-29 per linear foot.

Why this matters: This development offers commercial real estate professionals in Central Texas a unique value proposition for their clients, especially businesses, to create visually dynamic and customizable environments enhancing their premises and potentially attracting more customers.

Frisco ranks second nationwide in remote worker population

Source: NewsTalk Texas

Summary: Frisco has the second-highest percentage of remote workers in the U.S, with 39.7% of its workforce operating remotely, according to SmartAsset. Austin also ranks highly, with 30.7% of its workforce working remotely. However, despite this high percentage of remote workers, Dallas-Fort Worth still accounts for 10% of all office construction nationwide.  

Why this matters: The rise in remote work may herald a shift in commercial real estate demand, and understanding this trend could help Austin-based real estate professionals anticipate client needs and identify lucrative investment opportunities in residential and commercial spaces designed for remote work.