The explosive construction of apartment communities in Austin the past two years is not necessarily a signal that this market is a top pick for developers or investors, according to a new national multifamily report by Marcus & Millichap. In fact, Austin dropped down three notches in the real estate firm’s National Apartment Index from 15th to 18th place. The index measures economic and supply and demand variables for the upcoming year. Some of the factors include employment growth, vacancy rates, construction rates, housing affordability and rents. Though job growth should continue to be strong, some 11,500 units will be completed this year, about double last year’s additions. Vacancy rates should climb, but that isn’t likely to result in rent decreases.…
The Latest News on Commercial Real Estate in Austin
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One of the mega-trends in real estate in recent years has been a shift by many consumers from being homeowners to renters. And for many 20 and 30 somethings, that 10 years ago at that stage of life to would be diving into homeownership for the first time, they now may well be renters for a decade or more given higher down payment and more stringent loan qualification requirements. Not surprisingly, residential rents continue to escalate and vacancy rates decline.
AXIOMetrics, Inc., a leading provider of apartment data and market research, has just completed a study of occupancy rates in the 90 largest metropolitan markets. Across the country, apartment occupancy has remained greater than 94 percent since 2012.
So where are apartments most…
Austin's real estate market made strong gains between this year and last, and the big high rises downtown were no exception.
The buildings on the list didn't change much itself – but their tax values posted gains of between 3 percent and 41 percent.
Austin's most valuable building remains the iconic Frost Bank tower. A surprise on the list is the second lot at 98 San Jacinto Boulevard, the Four Seasons Hotel, which shot up 46 percent from $66.5 million to $93.9 million to a position more valuable than the Chase Bank tower.
The figures in the slideshow to the right are taken from Travis County tax rolls, and so the list doesn't include a few of downtown's most prominent condo buildings. Condo units are valued for the tax rolls individually.
We are excited announce the listing of 2708 San Pedro. This 10 unit complex is brand new to West Campus and offers some of the nicest finish outs you will find for a Student Property. The list price for this complex will be $3,900,000. The complex is fully leased and will always be one of the most sought after student properties in the West Campus Market.
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Austin Gold Rush
The real-estate market in Austin, Texas, has been on a roll. Apple Inc. announced in 2012 that it was planning a $304 million campus in the city, doubling its presence.
Now, a Cushman & Wakefield report said that in the past year Austin has seen office-building investment volume increase in percentage terms more than in any other U.S. city. The total value of the properties sold in the 12 months ended June 30 was $2.1 billion, a 304% increase over the previous year.
The largest single purchase during the 12-month period was by Cousins Properties Inc., CUZ +0.75%which bought a 434,000-square-foot building at 816 Congress Ave. for $105 million.
Demand for Austin office buildings is being fueled by the city's technology sector.…