GW Partners

🎉 Our Q2 report is here. 🎉

Below is our in-depth analysis of the Austin real estate market and the trends we are seeing.

Check it out to see where the market is headed!



https://www.gwptx.com/austin-retail-real-estate-report/

🏢 Looking to invest in commercial real estate?

Austin's commercial real estate sector offers a range of opportunities for investors looking to capitalize on its strong economy, population growth, and diverse real estate market.

It presents the potential for both short-term rewards and long-term profitability, making it an enticing destination for savvy real estate investors.

Check out this article below for our in-depth analysis of Austins' commercial market. 👇

Unlocking Opportunity: Reasons to Invest in Austin Commercial Real Estate - GW Partners of Texas | Asset Services Nestled in the vibrant heart of Texas, Austin is much more than just the undisputed “Live...

🏗 Exciting developments are underway for downtown Austin's Block 32, home to Vince Young Steakhouse. 🏢

Manifold Real Estate is proposing two towers, one potentially reaching over 450 feet and the other nearly 600 feet in height, located next to the convention center.

Their request for a downtown density bonus is currently under review by the Austin Design Commission. This project sparks a debate between those advocating for more density and housing and preservationists who see the site as historic.

The two towers could offer 856 apartments, a 216-room hotel, retail space, and amenities. Stay tuned for the Design Commission's decision!

Commercial real estate activity in the first half of 2023 has seen a significant slowdown, with transaction volumes dropping to levels lower than those at the start of the Covid-19 pandemic. According to MSCI Real Assets data, $181.77 billion in commercial real estate sales occurred in the first six months of this year, down from $424.51 billion the previous year.

This year's transaction volume is the lowest in the past five years. While the number of transactions in 2023 is slightly higher than in 2020, it remains significantly below pre-pandemic levels.

The primary reason for this slowdown is attributed to the Federal Reserve's 11 interest rate hikes since March 2022, which have made commercial real estate deals less attractive. Banks have also reduced their lending activity in this sector, particularly for older office buildings.

Overall, the future of commercial real estate acquisition activity hinges on interest rates and economic stability. Investors are looking for predictability in inflation and interest rates, and the upcoming 2024 presidential election could further influence policies affecting real estate investments.

https://www.bizjournals.com/austin/news/2023/08/16/commercial-real-estate-sales-volume-slows.html

Commercial real estate sales volume for first half of 2023 drops below same-period sum in 2020 - Austin Business Journal Nearly $182 billion in commercial real estate sales occurred in the first half of 2023, a sharp drop from the $424.5 billion in transactions a year prior, according to MSCI Real Assets data requested by The Business Journals.

🏢 Texas Commercial Real Estate News Highlights 2023 🏢

GW Partners searches through the major Texas commercial real estate news outlets to put together a list of highlights on a quarterly basis.

These CRE news highlights include the latest sales/acquisitions, big leases signed, and financing transactions that occurred in the region.

Check them out below 👇

https://www.gwptx.com/texas-commercial-real-estate-news/

Texas Commercial Real Estate News Highlights 2023 - GW Partners of Texas | Asset Services GW Partners searches through the major Texas commercial real estate news media posts to put together...

Who really owns Austin?

The 3 companies that own the most commercial real estate square feet are:

1. Blackstone. 9 million S.F. owned.
2. Cousin Properties. 5.31 million S.F. owned.
3. Simon Property Group. 5.02 million S.F. owned.

The 3 companies that own the most commercial properties are:

1. Blackstone. 160 properties.
2. Clarion Partners. 63 properties.
3. Inventrust Properties Corp. 61 properties.

Blackstone Is King of Austin Commercial Real Estate New York-based firm has amassed roughly 9 million square feet in the Austin area, making it the largest commercial property owner in the Texas capital.

🚨 Huge development news🚨

The old Alcoa aluminum plant in Rockdale is getting a huge renovation!

Dallas-based developer Xebec Holdings LLC intends to transform approximately 3,300 acres out of the total 31,000-acre property into an Advanced Manufacturing and Logistics Campus, covering up to 50 million square feet of industrial space.

The site's strategic location between Austin, Dallas, San Antonio, and Houston, along with proximity to Taylor and Tesla's headquarters, offers logistical advantages.

Xebec's project envisions three-dozen buildings with potential future expansion, aiming to attract critical manufacturing and supply chains to the US. While no tenants have been confirmed, the developer anticipates operational components by mid-2025.

The expansion of the greater Austin area is continuously growing. This project is expected to generate significant job growth and economic opportunities for the region.

Massive vision revealed for old Alcoa plant in Milam County - Austin Business Journal On a site seven times the size of the Austin airport, a development firm wants to put up to 50 million square feet of industrial space — and that's just to start.

🎉 Exciting News! 🎉
🚨 Leased Alert 🚨

I'm thrilled to announce that we have a fantastic new tenant for our clients' restaurant space! 🍽️

Please join me in extending a warm welcome to Garbo's Restaurant as they embark on their new location after tremendous success!🎊🥂

We're excited that they'll bring a fresh and delightful dining experience to our beloved community. As Garbo's starts this new adventure let's show them love and support by visiting their restaurant and spreading this exciting addition to our community! 🗣️

If you're as thrilled as I am about this fantastic news, drop a congratulatory comment below and share this post with your network. Let's help make Garbo's the talk of the town! 💬

🏢📉 Struggling Office Property Market Hits Banking Industry 📉🏢\

The decline in the value of office properties is taking a toll on the banking industry, with national and regional banks facing significant challenges. 🏦💼

Recent reports reveal that banks such as Goldman Sachs, M&T Bank, and Citizens Financial Group are experiencing markdowns in loans and investments tied to office buildings. This comes as no surprise, given the ongoing economic uncertainty, layoffs, and the continued prevalence of remote and hybrid work schedules impacting office property investors nationwide. 📊💼

🏢 Commercial real estate investors are grappling with low occupancy rates, making it difficult for landlords to meet payment deadlines and find buyers for distressed office properties. Negotiations between lenders and landlords for new loan terms and extensions have become common as they navigate through the current market weakness. 🏢💼

According to S&P Global, regional banks are particularly at risk, with the delinquency rate on commercial real estate loans reaching its highest level since the third quarter of 2021. 📈💼

As the situation unfolds, banks are working diligently to reduce their exposure to the office market and reevaluate their lending strategies.
In this dynamic landscape, it is essential for financial institutions to adapt and find innovative solutions to weather the challenges posed by the struggling office property market. We will keep a close eye on further developments in this space. Stay tuned for more updates! 📆💼



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Embracing the Hybrid Work Model

Office space still has not recovered from the COVID-19 pandemic and in many metro areas, office occupancy is still under 50%. This is because a lot of companies moving to a more hybrid model of work.

Many companies are now exploring flexible office solutions that provide a balance between in-person collaboration and remote work.

The commercial real estate market is undergoing a period of transformation and adaptation. The hybrid work model is reshaping the landscape and is leading to more co-working spaces and sublease spaces.

Only time will tell how this will play out!

Remote work driving 'office real estate apocalypse' as buildings sit empty - Austin Business Journal Elon Musk warns of a commercial real estate meltdown as valuations drop. New research shows the extent of that decline.

Hutto's Long-Awaited Megasite Attracts Billions in Investment for Data Centers and Industrial

The "megasite" in Hutto, north of Austin, is finally attracting large-scale investment after years of anticipation. The 1,400-acre land, owned partially by the city of Hutto, has previously been considered by major companies like Tesla and Applied Materials.

However, two private projects, PowerCampus Austin and Hutto Mega TechCenter, are now in progress and nearing final agreements. PowerCampus Austin is a joint venture between Skybox Datacenters and Prologis, and it will be a massive data center campus spanning 150 acres.

Hutto Mega TechCenter, developed by Titan Development, will be an industrial hub covering 188 acres. The projects aim to boost the technology and industrial sectors in Hutto and attract suppliers of Samsung Electronics, which is investing billions in a fabrication facility nearby. The area along U.S. Route 79, between Round Rock and Taylor, is considered a highly desirable location for economic development.

The megasite represents a significant opportunity for future development in the region and is expected to attract billions of dollars in investment.

After years of courting companies, Hutto preps 'megasite' for tens of billions in investment - Austin Business Journal A couple of huge projects have already been announced and a few Samsung suppliers are also sniffing around: "This is a lot of hard work for the last couple years and I feel like it's paying off."

This would be an interesting addition to the Austin area!!

An $8.7 billion Vegas-like "mini-city" resort is reportedly being planned to go up by the new Tesla factory.

The ambitious plans include a 500-room wave hotel with an observation wheel, a 50-acre lagoon, seven resort hotels, more than 3,000 hotel rooms, and potentially an indoor ski resort.

If Emerald Island does get built, East of the airport is going to explode with growth.

$19B in development aimed east of Austin, including private airport — how much will actually get built? - Austin Business Journal A resort paradise with multiple hotels — billed as a mix of Vegas, Disney World and Venice. A new private airport surrounded by big warehouses and offices. This developer has big dreams east of Austin. Everyone's wondering: how much will actually get built?

As of March 2023, the total amount of office space nationwide available for sublease reached the highest amount ever recorded. Currently, there are 210 million square feet available for sublease and the previous record was 147 million back in the Great Recession of 2009.

Austin ranks 3rd in space available for sublease. 3.9% of the total inventory (5,175,526 sf) is available for sublease.

10 US Markets Lead Historic Office Sublease Availability Amounts Are Two and Three Times Greater Than Those Posted During Great Recession

A massive 43-acre project is being planned to be developed on the Orange metro line over the next coming years.

The orange line is going to make it convenient for people to travel south to Slaughter Ln and north to Parmer Ln.

With this new development will come 1,218 multifamily units, 210,000 SF of office space, and 136,000 SF of retail space.

Plan to build on far South Congress gets way bigger - Austin Business Journal This would be something big for the end of South Congress Avenue, and it could set an example for other projects near train lines.

For the second year in a row, Real Estate investors have named Austin the 2nd best market to invest in.

The two best-performing sectors: Industrial & Multi-Family

Austin has had 18,661 new apartments open & has another 18,095 apartments under construction. As for industrial space, Austin has 66.1 million square feet built & another 15 million square feet under construction.

2023 is going to be a big year for the Austin Real Estate Market!

Real estate investors still hot on Austin, CBRE reports - Austin Business Journal The developers and investors across the U.S. say they're happy to keep pouring money into Austin.

We're pleased to announce we've successfully helped one of our clients acquire another investment property for their portfolio!

Churchill Place in San Antonio is a retail building with 13,902 sf located in the prime location just north of Wurzbach Pkwy. This retail building is 100% occupied and anchored by a national tenant.

Transactions like these are what we at GW Partners excel at and continuously helping clients build their portfolios is what we live for.

If you're looking to start or build your portfolio with office buildings or retail buildings now is the perfect time to get engaged and lock down a cash flowing property.

Great Day at the Heroes Night Out Silver Shells S***t Shoot. GW Partners sponsored a shooting station and fielded a team of friends and family. Somehow we managed to place.
Please consider donating to Heroes Night Out.

Great organization helping veterans, active duty, first responders, and their families in Central Texas; possibly you or your neighbor.

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The domain has 3 new projects announced to start construction in March of this year and completion of projects in February 2025.

- 2 of the buildings will be the tallest ones in the domain
- third will bring an additional 345 residential units to the domain.

With the addition of these 3 buildings and the 20-story apartment tower going up next to Q2 stadium, the domain is expiring unprecedented growth that doesn't seem to be slowing down.

Three new projects announced for The Domain - Austin Business Journal It's projects like these that have us calling The Domain Austin's second downtown.

PRIME RETAIL SPACE AVAILABLE IN DRIPPING SPRINGS!

Available are 5 different spaces, ranging from 1,267 SF - 3,498 SF. This amazing property is located right across from the Dripping Springs Elementary School and Middle Schools, so it's heavily trafficked and has high visibility. The finish-out is very impressive and will be a perfect spot for an up-and-coming business or a well-established business.

Dripping Springs is growing at an exceptional rate and this will be a prime location for businesses for years to come!

For more information:
https://www.gwptx.com/our-properties/?propertyId=1009984-lease

For inquiries please email us at:
[email protected]

Another massive company has filed for additional square feet to be constructed!

Tesla is reaching the $1billion mark of construction and with already 10,000 employees these new additional projects will bring thousands more to the greater Austin area.

Tesla is currently the largest manufacturing firm in Austin with 4.00 million square feet.

https://www.bizjournals.com/austin/news/2023/01/11/tesla-1-billion-construction-projects-filing.html?cx_testId=40&cx_testVariant=cx_21&cx_artPos=6

Tesla reaches for $1B in construction projects with latest filing - Austin Business Journal Tesla continues to add to its construction tab for its Austin gigafactory. The news of big, new construction plans are rolling in daily lately.