In recent years, commercial real estate in Austin, Texas has thrived, growing in size, opportunity and demand. It has attracted the interest of local and international investors. As a matter of fact, in 2016, the institutional assets saw over a 25% increase in transactional volume, raising the transactional dollar value to over 40%.
Commercial Real Estate
Austin has been successfully owned locally and a secondary market since the “Keep Austin Weird” slogan. Industrial real estate investing has turned the city into a nationally owned primary market in the same spirit. However, the unstable nature of real estate makes it hard for investors to predict the industry’s future success.
Nonetheless, in 2018, Texas was the best place to start a business with meager unemployment rates. In 2019, the city ranked the best place to live in America. Such great reviews have attracted millennials and creative minds into the city. Additionally, the favorable taxes to business and the absence of state income taxes to Texas employees make Austin a hot market for entrepreneurs.
Current State of Commercial Real Estate in Texas
It is clear that the economic market in Austin is rapidly expanding, driving in more demand and dollars into the city. Despite the current economic lull in other cities and states globally, industrial real estate investing in Austin is booming. As an investor, you can always ask for assistance to find the property’s value before investing.
You can use a reliable buyer such as Point Acquisitions to have a stress-free experience. we are a professional investment company with intimate knowledge of the industry’s best-selling and buying values. Investing in a hot market currently needs you to be very careful in making decisions on how best to improve your financial portfolio.
State of Market
Currently, Austin is referred to as the technology hub. The tech industry has rapidly made the city their home by occupying over half the commercial space. The tech companies also have offered over 30% of employment to the city’s residents. Even though technology has a big share in commercial real estate, there are other industries to consider, they include,
Rental Real Estate
With the growing job market, more and more people are flocking into the city. The educated working population is willing to pay rent even though it is slightly elevated. The renters can pay higher rent rates because of the abundance of well-paying jobs. Also, great social amenities and rich culture make the renters feel right at home. This is an excellent time for you to invest in real estate in the city.
Due to the economic development and job opportunities, more people are settling into the city. This is making the home prices shoot up rapidly. Although homebuyers can access credit and low-rate mortgages, making it a great time to buy, it is not good news. There is great competition for houses due to the influx of the working population making house affordability a rising concern.
Mixed Use Buildings and Amenities
More mixed-use complexes have come up in the city and are still coming up. This is because of the high and increasing demand for on-site social amenities. Apartment buildings are merging retail and restaurant spaces for their busy tenants. Additionally, more green spaces are coming up for hiking and bike trails.
With the frequent movements of tech executives, the hotel business is at an all-time high. The market occupancy is substantially increasing the supply growth and demand in the hotel industry. Large businesses downtown are profiting mainly from the increased hotel occupancy prices. Investing in the hotel commercial real estate industry can be a great investment decision since there is a forecast of increased hotel space demands in the future.
Over the recent years, Austin has seen large hospitals come up. There are many prominent hospitals in the city offering a wide range of inpatient services and specialty care. More institutions are investing in building hospital amenities such as a brain health campus and multiple clinics. If you are interested in acquiring or developing hospital buildings, contact the experts to evaluate property value for best offers.
There is an increasing demand for industrial space because same-day delivery is rapidly replacing retail. More warehouse and distribution centers are coming up, increasing the property taxes in some counties. This trend pushes retailers out of the high property taxes counties into the low-tax counties such as Schertz. Investors are flocking to high-tax counties such as Williamson to invest in industrial parks.
Several websites provide listings of commercial real estate for the region. It would be best for you to consult Point Acquisitions prior to engaging a commercial broker – we can give a competitive offer and close quickly – saving you the hassle and fees typically associated with that route.