Austin's Development Shows No Signs Of Slowing
Austin is one of the healthiest development markets in the US, and that trend is likely to continue for the foreseeable future, according to several expert panelists who are speaking at Bisnow’s State of the Market event in Austin on March 29. Buy your tickets and join us at 7:30am, and read on for a preview.
Cadence McShane VP Srinath Pai Kasturi (pictured on the left at a previous Bisnow event) says the market is showing signs of healthy growth, and the influx of people into Texas and Central Texas in particular is sustaining it. Occupancy and absorption rates remain high in the multifamily and office sectors. Construction costs have remained fairly stable over the past six months. In particular, East Austin is seeing a lot of activity, especially multifamily and creative office.
While Houston suffers from low oil prices, ARA principal Pat Jones (right, with colleague Andrew Childers) says Austin doesn't feel the pinch at all. Austin is technology-driven, and companies here aren't affected much by the macroeconomic headwinds that are hurting Houston—unless their clients are energy-related.
If anything, Houston’s loss is Austin’s gain, Pat says. Since investors are wary of Houston, they pour their capital into Austin.
A former CTO of Homeaway, Lynn Atchison, says the tech presence in Austin is growing. West Coast companies like Google, Facebook and Apple are opening offices all over Austin. Biotech is also exploding, with new hospitals and health startups spurring development activity all over the city.
As a bonus, and because it's Spring Break time, we couldn’t resist asking Lynn about the trends in short-term vacation rentals. She tells us exchange rates are tempting Americans to visit Europe, especially in summer. As for Lynn, she’s heading to St. Thomas. (Can we come too?)