Weekend Roundup: 🏗️ East Austin's 338-Unit Boom & Sweet Frozen Treat Expansion! 🍦

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

Brought to you by:

1. JLL secures financing for a massive 338-unit project in East Austin 🏗️

2. Austin's 10-year housing plan: Mixed results, but preserving 10,000 affordable units 🏠

3. Abbott's Frozen Custard plans 100 Texas locations, eyeing Austin expansion 🍦

4. Austin's luxury home market surges, driven by Silicon Valley tech influx 💼

Business Expansion and Development in Austin

JLL Arranges Construction Financing for 338-Unit Multifamily Project in East Austin

Source: REBusinessOnline

Summary: JLL has secured an undisclosed amount of construction financing for a 338-unit multifamily project named Lirica East Austin, located about three miles east of downtown Austin. Scheduled for completion in early 2026, the project is a collaboration between CSW Development and Blueprint Local and will offer amenities including a pool, clubroom, fitness center, coworking space, and a sky lounge.

Why this matters: This financing arrangement indicates a continuing trend of investment in Austin's East side, offering commercial real estate professionals opportunities to engage with clients looking to capitalize on this area's growth.

The great frozen treat land rush unfolding in Austin

Source: The Real Deal

Summary: Frozen dessert companies Abbott's Frozen Custard and 16 Handles are aggressively expanding into the Austin market, seeking to capitalize on the city’s growth. Abbott's plans to open 100 locations in Texas, with already one property secured in Kyle and potential sites eyed in Leander and Manor, aiming to open at least 10 shops in the Austin area in the next four to five years. Similarly, 16 Handles is looking to open seven to 10 stores in Austin over the next three years. Both companies are utilizing franchise models for their expansion.

Why this matters: The expansion of these businesses indicates a strong demand for retail spaces in the Austin area, which could signal opportunities for commercial real estate professionals to aid in site selection and leasing negotiations.

Real Estate and Housing Trends in Austin

Scorecard: Where Austin falls short, is making progress on its 10-year housing plan

Source: KXAN News

Summary: Austin's 10-year Strategic Housing Blueprint Scorecard for 2022 reveals mixed results, with success in creating new housing near Imagine Austin centers and corridors and preserving 10,000 affordable units. However, a significant shortfall exists in the goal of 60,000 new affordable units in 10 years, particularly for households earning 30% median family income or below. Changes to the blueprint could be forthcoming, including an emphasis on City-funded units, and the possibility of an overhaul funded in part by a $10 million HUD grant, slated to begin in 2024.

Why this matters: Understanding the city's struggles and successes with housing development allows commercial real estate professionals to make informed decisions when advising clients on property investments or development opportunities, particularly in underserved areas.

Cities with the most expensive homes in the Austin metro area

Source: Central Texas Real Estate Review

Summary: The Central Texas real estate market continues to experience unprecedented growth despite the ongoing pandemic. This growth is driven by an influx of tech companies migrating from Silicon Valley, resulting in a surge in both residential and commercial property demand. Austin, in particular, is seeing a boost in its luxury housing market, with properties selling at record speed. Industrial real estate also shows strong momentum, with e-commerce boom driving demand for industrial and logistics properties. However, affordability remains a concern as rising prices put pressure on local residents.

Why this matters: Central Texas real estate professionals can leverage this trend by focusing on the luxury and industrial real estate sectors, which are experiencing significant demand due to tech and e-commerce companies' inflow.

Is a houseboat more affordable than apartment rent? Tracking rent prices in Central Texas

Source: The Eagle

Summary: Interest in houseboat living as an affordable alternative to traditional apartment renting is on the rise, with Google searches for "how to live on a boat" increasing by 71% in the past year. Studies reveal that houseboat dwellers could save up to $659 per month, particularly in cities with high rental rates and limited available housing.

Why this matters: Understanding this trend towards unconventional housing choices can enable commercial real estate professionals to diversify their portfolio and advice, potentially creating unique investment opportunities for their clients in the Central Texas area.

Weekend Roundu