Austin Real Estate Development -
1st Quarter 2007.

Austin Market Overview

Austin Economic Forcast by Angelou Economics: The 2007 and 2008 expected absorption for Austin real estate markets are as follows: Office – 3.0 million sq ft; Industrial – 3.2 million sq ft; Retail – 1.1 million sq ft; Single Family – 32,000 units and Multi-Family – 11,000 units.

Central Texas Job Growth Strengthens: (Real Estate Center) – The five-county region added 33,900 jobs in January compared with the same month a year earlier. That's a 4.9 percent annual job growth rate, which is a six-year high as well as one of the state's highest rates. The total Austin work force, excluding agricultural jobs, reached a total of 730,300 jobs.

Residential

Residential Sales Data for March: ( Austin Board of Realtors) New listings for March were down by 14.37% compared to March 2006, significantly tightening inventory. Solds increased by 7.80%. Average list price for New Listings is up 19.42% to 316,402. Sold average sales prices increased 9.13% to $239,496 compared to $219,451 in 2006.

Record for Austin New Homes: (Austin American-Statesman) – Austin builders closed on a record 16,249 homes in the first quarter, up 4.3 percent from the first quarter of 2006. However, first-quarter new home starts in Austin numbered 3,327, down from the record 4,613 a year ago while new home starts nationwide fell nearly 28 percent. "The large-production builders are battling inventory issues elsewhere in the country, and are thus conservative right now," said Mark Sprague, head of Residential Strategies' Austin office. "Moreover, with the rules being changed today regarding mortgage qualifications, builders are being careful until they can determine the extent of the fallout."

Jamestown Drive Condos Coming Up: (Austin Business Journal) – Passeo Park, a 50-unit, two- and three-story condominium development priced from $150,000 to $250,000, will break ground this summer at 8323 Jamestown Dr. Plans include 7,200 square feet of live-work and neighborhood-oriented retail space on the nearly three-acre project near the US 183 and Lamar Boulevard intersection.

900 Condos Underway for Downtown Austin: (Austin American-Statesman) –This fall ground will break on a 35-story residential tower at Sixth and Nueces Streets w/ 400 condominiums and ground-floor retail space. The second high rise will be built at the former postal site across San Antonio Street and will include more than 500 condos, more than 100 hotel rooms, and more than 25,000 square feet of ground-floor retail space.

For a map of upcoming downtown Austin projects, go to http://www.urbanaustin.org/index.php/Main_Page

Four Seasons to Break Ground in Fall: (Austin American-Statesman) –The Four Seasons Residences on the shores of Town Lake will break ground this fall. Condos will be priced from the upper $400,000s to $2 million for 1,000 to 2,700 square feet, with penthouse units on the 28th and 29th floors. Michael Graves & Associates Inc. is the architect of record.

Taking the Fifth in Austin: (Austin American-Statesman) –Sabine on Fifth, a ten-story building of mostly empty offices is being converted into 80 condominiums. Prices start in the mid-$190,000s for one-bedroom units with about 700 square feet and range up to the mid-$500,000s for 1,461-square-foot units.

Summerfield Suites Converting to Condos: (Austin Business Journal) –The Summerfield Suites at 7685 Northcross Dr. will be converted to condominiums including a mix of one-bedroom units at around 575 square feet and two-bedroom units at around 850 square feet. The city is purchasing 34 one-bedroom and six two-bedroom units to resell through its affordable housing program.

Take a Look at The View: (Austin Business Journal) –The View, a new 69-unit condo project at 3600 S. Lamar is on the edge of the Barton Creek canyon lands. It will have one- and two-bedroom units ranging from 760 to 2,280 square feet and priced from $260,000 to $850,000.

Peninsula Underway for Lago Vista: (McClain Holdings) – Developer McClain Holdings of Austin will build 225 condominiums on 58 acres along Lake Travis’ north shore. The Peninsula will also include a restaurant, meeting space and a marina.

Centex to Build Pearson Place: (Austin Business Journal) – Centex Homes' Central Texas division will develop a mixed-use community on 750 recently acquired acres on the north side of SH 45 near the intersection of West Parmer Lane. Pearson Place will include 1,400 homes on 450 acres, with the remaining land earmarked for civic uses, retail and office space.

Homebuilders Selected to Build Mueller Neighborhood: (Austin American-Statesman, Austin Business Journal) –Six companies have been selected to build the first phase of the new Mueller neighborhood starting this summer. The builders are David Weekley Homes, Meritage Homes, Standard Pacific Homes, Saldaña Homes, Streetman Homes and The Muskin Co.

Vizcaya Community developing off Bee Creek Road: (Austin American-Statesman) – Vizcaya, a luxury community on the former Covert family ranch on Lake Travis' south shore will be built over a ten-year period on 1,050 acres off Bee Creek Road toward Pace Bend Park. Vizcaya will include trails, a marina and an 18-hole Reese Jones–designed golf course. Construction on the first of the planned 450 to 500 custom homes is expected to start in 2009.

Commercial and Retail

Office Vacancies Low: (Austin American-Statesman) – Office building vacancies are at their lowest level in six years while downtown rents for first-class space averaged $32.13 per square foot (psf), the highest rate since late 2001.

First Phase of Domain Opened: (Austin American-Statesman) – Simon Property Group Inc. plans to start construction late this year on Domain Phase II. When Phase II of The Domain is completed, it will include over 3 million square feet of office space, more than 4,000 residential units, 900,000 square feet of retail space and two hotels. The Phase II retail district will open with a Nordstrom store.

Groundbreaking at Four Points: (Austin Business Journal) – Workers broke ground this week on the first 275,000 square feet of office space at Four Points Centre which includes two 100,000-square-foot, Class-A buildings with a parking garage and a smaller 75,000-square-foot tilt-wall building with surface parking.

Mueller Development Welcomes Seton: Seton Family of Hospitals is moving its headquarters and 700 employees to a new office complex on 3.25 acres at Mueller in fall 2008 .

Concordia Campus on the Move: (Austin American-Statesman) – Concordia University will build its new campus on 389 acres at 8311 RM 620 North in the summer of 2008. The 30-year master plan will organize the campus into three districts, centering each district around a plaza and connecting each with a pedestrian path. Athletic fields will be across the main road.

Rental Inventory

5th Street Commons: (Austin Business Journal) – Gables Residential and the Austin office of Direct Development will break ground next month on 5th Street Commons, a mixed-use project that will bring 38,000 square feet of retail and restaurant space and 138 apartments to 5th Street between West Lynn and Campbell streets.

Affordable Housing at Rivermont Place: (Austin Business Journal) – Campbell-Hogue & Associates Inc. will break ground in early summer on a $12 million residential and retail development intended to bring affordable rental housing to the area. Rivermont Place, at Montopolis Drive and East Riverside Drive, will include 142 rental units targeting mostly families making between 60 to 80 percent of the area’s median income. Some retail development is planned.

 Northern Travis and Williamson County

Eco-Friendly Development: (Austin American-Statesman) – Williamson County is getting its first major environmentally sensitive mixed-use development, near the proposed Austin-to-Leander commuter rail line. The 1,900-acre, multimillion-dollar Water Oak at San Gabriel will be completed in phases over the next decade. It will include 4,000 high-end homes with about 650 acres designated for land conservation, making it one of the largest conservation subdivisions in Texas.

Inner Loop Retail for Georgetown: (Austin Business Journal) – New America Georgetown LLC of Houston will break ground later this spring on a 500,000-square-foot retail and commercial development on the northeast and northwest corners of the SH 29 and Inner Loop intersection.

New H-E-B Plus in LEANDER: (Austin American-Statesman) – The new H-E-B Plus store at 651 US 183 North recently opened, offering almost 2,000 types of wine, about 900 types of produce and 300 varieties of cheese. The store also sells furniture and home improvement products, and it has an auto section, garden center and a Café Spoonz. Officials say the store will add $383,000 annually to the city's sales and property tax base.

Recreation Park in Leander: ( Austin Business Journal) – The Texas X Park recreational complex has received an environmental permit from the U.S. Corps of Engineers, clearing the way for a groundbreaking on the 205-acre X Park, which will include facilities for a skate park, climbing walls, BMX tracks and beach volleyball.

Retail Endeavor in Cedar Park: (Austin Business Journal) – Endeavor Real Estate Group LLC is breaking ground today on a $100 million retail center. Tenants will include Super Target, Cinemark, Circuit City, PetSmart and OfficeMax. The center is on 85 acres at US 183A and FM 1431.

Green Office Park in Round Rock: – Designated Tree Partners will break ground this spring on what it hopes will be the city’s first LEED-certified office complex. Green Square will encompass more than 130,000 square feet on 13 acres off Greenhill Drive. The complex will incorporate natural light to cut energy costs, and xeriscaping and rainwater retention will be used to maintain the campus grounds.