The recession has caused the luxury home market in Austin to really take a tumble and this foreclosure is a direct result of the lack of demand in high end custom homes and home sites.

The second quarter saw vacancy rates in office space decrease for the first time since 2007 due to the fact that new construction in office space has slowed significantly and the market is catching up.  The biggest mover is the downtown Austin Central Business District where rates have been falling steadily since the 4th quarter of 2009.  New plans for high density developments are in the works.

Occupancy rates for retail buildings has also increased to just under 92% making the Austin area the only Texas metro area to show an increase in the first 6 months of 2010.  Minimal amounts of new construction will see those occupancy rates increase even more over the next few months.

Meanwhile, industrial vacancy rates are at a high not seen since the big crash of the late 1980s.  The citywide vacancy rates increased from 22% at the end of 2009 to the present rate of 24%.  However, experts are predicting this to slow down soon as there are several large leases pending.

Overall area brokers are reporting an increase in the volume of deals getting done in the marketplace.  This has lead to an increase in optimism and an sense that things are turning around.

The Austin market has remained one of the strongest real estate markets in the country.  We have not seen the big dips in prices that other markets across the country have seen.  This can be attributed to restraint by area builders who did not create an oversupply of housing and to our strong local economy which is still creating jobs.  Just recently Samsung announced they were investing $3.6 billion to expand its semiconductor business here.

Although it’s going to be a slow recovery, it’s good to see that signs are definitely pointing in the right direction.

Creek on 48+ acres in Southwest Austin

We just listed this gated, wooded 48+ acre estate tract with intermittent creek and deep pond. Land currently features a 4,000 sq. ft. home and barn. There is the possibility of subdividing this property into 2+ acre tracts for development.

The 48 acres are gated with frontage on 3 county maintained roads, city water line, well, electricity on property. This rare tract is located just off Hwy. 290, only 20 minutes to downtown Austin. Find out more about it here.

While banks aren’t going to be handing money over to anyone who walks in off the street with a business plan, they are going to be making it easier for smaller businesses to get access to funds that will help them grow.  Business growth equals job growth.  The more jobs created the greater the demand for housing, land, etc…  It will be interesting to see whether or not existing business will take advantage of this opportunity and if it will pay off in the form of job growth in Central Texas.

Last week, the administration announced they were eliminating all fees on the SBA’s most popular loan, the 7a loans, as well as CDC/504 loans. They are guaranteeing larger portions of loans (up to 90%) and offering 0% interest loans for small businesses that are falling behind on current loans. This loosening of restrictions will allow current businesses to grow and new businesses to start up.

With Austin’s relatively strong economy, we may see quite a few new businesses starting up in the near future. New businesses are going to need new space.  We are going to see new and creative uses of existing urban areas and (hopefully) smart growth around the urban core.