Weekend Roundup: 🚀 Elevate Your Portfolio: $1.6B Austin Expansion & East Austin's Gem 🌳

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 to soar with Related's 50-story, mixed-use marvel by Ladybird Lake. 🌆

2. $1.6B Austin Convention Center expansion set to redefine city's economic landscape. 🏗️

3. Taurus and AOG Living to green East Austin with 348-unit Evergreen. 🌳

4. Round Rock hits a high note with its first professional performing arts venue. 🎭

Real Estate Development and Construction Projects

Related Hoping to Go 50-Stories in Austin

Source: Connect CRE

Summary: The Related Cos. is planning a high-rise project across from Ladybird Lake in Austin, Texas. The 50-story project will feature roughly 800 residential units, a 225-room hotel, 200,000 sq. ft. of office space, and various retail spaces including a grocery store. The development is taking place in Austin’s South Central Waterfront District, a tax increment reinvestment zone (TIRZ), which is expected to transform into a dense, walkable neighborhood.

Why this matters: The insight from this article is that the ongoing development in Austin's South Central Waterfront District demonstrates the city's growing commercial real estate market, presenting the opportunity for commercial real estate professionals to actively engage clients interested in emerging urban hubs.

Taurus, AOG Living Break Ground on 348-Unit Multifamily Project in East Austin

Source: REBusinessOnline

Summary: Taurus Investment Holdings and AOG Living have jointly commenced the construction of a 348-unit multifamily project called The Evergreen at Whisper Valley in East Austin. The property, set within the Whisper Valley master-planned community, will offer a range of amenities including a pool, fitness center, resident clubhouse, business center, beer garden, dog park, and nature trails. The project is set for completion in spring 2025.

Why this matters: The insight into a significant new development project in East Austin could assist commercial real estate professionals in understanding the evolving market trends and potential opportunities for further investment in the region.

San Marcos' new modular style apartment complex finishing construction in August

Source: Newstalk Texas

Summary: Z-Modular is nearing completion of its $82 million Flatz 512 apartment complex in San Marcos, featuring a unique "module" design with units constructed off-site. The complex, which broke ground in 2020, has 384 units across eight buildings and includes various amenities like a pickleball court, fitness center, sports simulator lounge, dog park, electric vehicle charging stations, nature trails, and a stocked pond. The project located at 834 Cottonwood Pkwy is expected to be completed in August.

Why this matters: The article underlines the increasing trend towards modular construction in Central Texas, offering a new business model for real estate professionals to consider in their own practices for its potential cost and time efficiency benefits.

Round Rock is getting its first professional performing arts venue

Source: KXAN News

Summary: Round Rock is set to receive its first professional, permanent performing arts venue following the city council's unanimous approval of a grant for Penfold Theatre Company. The theatre will be located at Rock Creek Plaza and is intended to fulfill a community need for indoor arts facilities, as expressed in Round Rock's 2023 Arts & Culture Plan. The venue, which is expected to open in the fall, will span 6,400 square feet and accommodate between 100 to 150 guests.

Why this matters: This insight into Round Rock's investments into arts and culture could highlight potential growth areas for commercial real estate professionals, as these initiatives often stimulate surrounding business and real estate development, increasing property values and demand.

San Marcos Buc-ee’s inches closer to setting up shop

Source: KSAT News

Summary: Buc-ee’s is making progress on its plans to build a new travel center in San Marcos, Texas. The city councilmembers passed a resolution on Tuesday at their first reading for the 74,000-square foot center, which would be situated on a roughly 22-acre site near Interstate 35. The center, which is expected to bring 175 full-time jobs, have 120 fueling positions, and space for electric vehicles, will go before the council for a second reading on March 5. The Boerne location's construction is set to commence this summer.

Why this matters: The proposed Buc-ee's development represents a significant commercial real estate investment in the San Marcos area, potentially driving an influx of visitors and business to the area that could ripple into broader local market growth.

Infrastructure and Community Investment

$1.6 billion to a expand Austin Convention Center

Source: ConstructConnect

Summary: Austin City Council has approved $1.6 billion for the redevelopment and expansion of the Austin Convention Center due to constraints of size and layout. Funding will come from the municipal Hotel Occupancy Tax and the Convention Center's revenues. The design and engineering services will be provided by LMN Architects and Austin-based Page Southerland Page. The project is expected to start in 2024, with the current center to be demolished in 2025 and the new facility to open in late 2028. Once completed, the new convention center is expected to generate additional $285 million in yearly economic impact, provide nearly $13 million in additional annual tax revenue, and support over 1,600 additional jobs.

Why this matters: The expansion of the Austin Convention Center highlights a significant investment in Austin's infrastructure and can act as a key selling point for commercial real estate professionals aiming to attract businesses and investors to the city, especially those in the hospitality and events sectors.

Round Rock to renovate former city library in May

Source: Recenter.tamu News

Summary: The city of Round Rock is set to renovate its 35,000-square foot former library with office zones, a public face for tenants, and a redesigned public paseo. Future programming for the building might include an arts and culture space, the Round Rock Visitors Center, and the Round Rock Chamber. The project, designed by McKinney York Architects and executed by Braun & Butler Construction, is due to begin in May.

Why this matters: This renovation presents a potential opportunity for commercial real estate professionals to offer unique and modern spaces to businesses looking for office zones within a culturally significant and public-facing building.

2018 affordable housing bond dollars now spent. Here's what Austin got for them

Source: KXAN

Summary: Austin residents have approved four affordable housing bonds over the past two decades totaling over $700 million, and the city has now used all of its 2018 bond dollars. The focus will now turn to the 2022 funds, projected to last until around 2028. According to HousingWorks Austin, these bonds have led to the construction of 8,363 homes from 2006-2018, nearly 4,500 of which are for families at very low-income levels. Austin has also been able to leverage these bond dollars to attract outside funding, raising $6.50 from other sources for every $1 of bond money.

Why this matters: Understanding the extent of Austin's affordable housing efforts, backed by bond dollars, can help commercial real estate professionals identify potential investment and development opportunities in the city's housing market.

Market Trends and Insights

Greenberg Traurig Adds Real Property Shareholder in LA and Austin

Source: Connect CRE

Summary: Global law firm Greenberg Traurig, LLP has expanded its real estate practice with the addition of shareholder Paul M. Williams, who will operate out of Los Angeles and Austin. Williams is experienced in advising clients on acquiring, selling, leasing and financing real property across the U.S., including commercial, residential, energy, industrial and agricultural properties.

Why this matters: Williams' connection to Austin could enhance opportunities for local real estate transactions, possibly offering new partnerships and client leads for Central Texas real estate professionals.

Meet the typical mover to Austin: Single millennial renters making $76,000 a year coming from California

Source: Business Insider

Summary: Between 2021 and 2022, Austin attracted 71,801 new residents primarily from California and New York, with a majority being single, millennial renters earning an average income of $76,000 per annum. The new residents are attracted by the city's job opportunities, particularly in the tech industry, and its relatively lower cost of living. Despite the high income, most newcomers rent due to the city's high property prices, with home prices having risen about 32% since January 2020, and the median sale price in January 2024 standing at $509,380 - over $100,000 above the national median.

Why this matters: Understanding these demographic and economic trends can assist commercial real estate professionals in developing tailored strategies that appeal to the large and affluent renter market, particularly in the tech industry, which can be a significant source of long-term leases for commercial properties.