Across the full spectrum of residential and commercial real estate alike, Austin Texas is in a prime position to make a full market rebound in the upcoming months. There are a large number of factors that are contributing to the prediction, most notably the surge in large-scale projects that are set to begin construction in the near future.
Among the mentioned projects are the following:
- Construction of a major tower on East Fourth and Brazos streets
- Business park construction by Amazon
- Multiple blue-chip additions to Parmer Austin business park
- Big-ticket involvement from 37th Parallel Properties Investment Group, a real estate firm based out of Virginia.
With a host of major real estate investments on the horizon, Austin is poised yet again to maintain its rank as a nationwide hot spot for real estate. Austin Business Journal echoes the same message, predicting that Austin will have the “nation’s hottest housing market in 2020” while citing that “83% of panelists expect home values in the Austin metro to grow faster than the expected national rate of 2.8%.”
The following article provides additional information regarding the projects mentioned above.
East Fourth and Brazos Streets
Companies nationwide are taking advantage of the promising prospects of the Austin real estate market. Based out of Chicago, a prominent real estate firm (CA Ventures) is planning to construct a major apartment/ office building. Although the planned dates of construction are still in the works, city documentation indicates that the construction project aims to exceed 60 stories, putting the overall height at over 820 feet according to Statesman. Although numerous confidentiality agreements have limited the accessibility of detailed information, plans have been released to include a 16-story parking garage as part of the final design. As a result of the project, downtown will likely experience an economic surge.
Amazon’s Business Park
As with most business ventures, Amazon is never shy to dive in head-first. Fueled by high demand from the COVID-19 pandemic, Amazon is moving into Austin with no hesitation. Plans have been released for the construction of 5.1 million square feet of space, including a new warehouse, office hubs, and high rises. Set to build around the Round Rock area, Amazon’s efforts will undoubtedly employ thousands of workers – leading to a major economic boost for Austin.
Additionally, Amazon plans to further their investment by incorporating an almost 4 million square foot distribution facility. Not only will the facility dramatically improve the unemployment rate, but local subsidiaries of Amazon will gain a new foothold in Austin. The result is a multiplier effect of commercial real estate investment, long term positive area prospects, and heightened resilience through volatile markets.
Parmer Austin Business Park
Established in the heart of Austin, Parmer Austin Business Park has been a driver of productivity and profits since its advent in 2009. Since then, with over $2 billion in transactions, Parmer Austin has become a symbol for the hope and prosperity of Austin as a whole. With notable players such as Home Depot, Blue Apron, GM, Dell, Apple, and more, Parmer Austin hosts global leaders across a wide spectrum of industries.
A popular hub for major blue-chip companies, Parmer Austin Business Park is set to expand even further in the near future. With brand new leases signed by Apple, Cognizant, and Wipro, Parmer Austin Business Park is becoming a major player in the innovation-hub sphere. Innovation hubs are known to have a multiplier effect, leading to larger salaries and opportunities for direct and indirect subsidiaries alike. With over 600,000 square feet of planned construction, the park’s expansion serves as additional evidence of the robust and expanding nature of Austin as a whole.
37th Parallel Properties Investment Group
A notable Virginia-based real estate firm, 37th Parallel Properties Investment Group is set to build numerous 100+ unit apartment complex in the hearts of Westlake and North Austin. The firm boasts a near 100% occupancy rate for previous projects and expects to sustain similar performance rates with their latest investment. Reports indicate that they feel confident in their ability to
achieve substantial profits early on. With over $500 million in Texas investments alone, 37th Parallel Properties Investment Group is no stranger to the profit potential of Austin.
Although COVID-19 had a major impact on the U.S. economy as a whole, Austin Texas has demonstrated unwavering versatility and resilience in the face of extreme adversity. Not only is Austin poised to grow faster than the U.S. average, but investors nationwide are clamoring at the opportunity to jump in.
With notable players in the space like Amazon, 37th Parallel Properties Investment Group, and CA ventures, there are clearly high-hopes for the future of Austin.
Commercial real estate booms have a strong tendency to impact residential real estate as well. Buyers and sellers who are wary after the recent drop should recognize the promising future across the full spectrum of Austin real estate markets. Although media outcries are known for making wild and ungrounded predictions, the strong array of evidence from reputable blue-chip companies should give buyers and sellers a renewed sense of confidence in the markets.
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