Develop Austin Texas

The 2010 Texas Construction Outlook, released last week my McGraw-Hill, expects a 30% increase in Austin’s construction starts, and a 16% increase statewide, for a $52.5 billion industry. Austin is leading the other metropolitan areas, with Houston expecting a 17% boost, Dallas 16%, El Paso 8% and San Antonio 6%.

The biggest category for growth is expected to be in residential housing. Single family housing starts will increase by 31%, and multifamily by 34%. Nonresidential housing construction is expected to slip 1%, but public works and utilities should increase by 21%, boosted by federal stimulus funding.

For more than 100 years, McGraw-Hill “has compiled project and product information, plans and specifications and industry news and forecasts” to make their predictions.

Now is a great time to invest in development land in Austin and central Texas.

Pictured: The Falls – 315 Acres on Lake Travis

Beginning in February, the run down airport corridor on East 7th Street between 183 and downtown will be undergoing major renovation. A year of planning and $11.5 million are going into the project which should improve traffic, businesses, and general conditions in the area.

“East Seventh is considered a gateway to our airport, if not the gateway,” said developer Perry Lorenz. “If you think of it as a gateway for first-time visitors, ‘sad’ is what comes to mind.”

Developers and businesses are already interested in the renovation in the area. Project managers from the two Austin firms who won the project (Capital Excavation and Cash Construction) say to expect the difference to be “like day and night,” with cracked pavement replaced by brick layers, and palm trees lining the streets.

Two .2 acre lots on Tammye Lane in Austin are available for development or workspace opportunity. To be built on each are 2,000 sq ft garage/office spaces – 1,800 sq ft of storage space with 16 ft ceilings, 200 sq ft separate entry office, and 8 ft garage door.

The land is cleared of cedars and brush, with no zoning and no restrictions. Just minutes to Lohmans and 1431, this area is surrounded by development. Additional land available.

See the listing here.

As the Austin Business Journal reported on Monday, a new Grubb and Ellis Co. forecast ranked Austin as  the number one market “for long term office, industrial, retail, and multi-housing investment potential.”

One other city in Texas, Houston, appeared on the list, in the sixth spot.

Says Bob Bach, Grubb and Ellis Senior Vice President and Chief Economist: “The good news is that the freefall we saw in 2009 is over and the future is more certain, giving owners and users of real estate the confidence to begin making decisions again.”

Grubb and Ellis Co. is a real estate and investment services firm out of Santa Ana, California.  You can view their entire 2010 Forecast for the whole US or your local area. Now is the time to look at the commercial real estate opportunities Austin has to offer.

The Falls: 315 Acres on Lake Travis

This stunning piece of property features Lake Travis waterfront and views, with cleared fields and mature trees.

This property includes frontage on two paved, maintained county roads with a hard corner. The land gently slopes to the approx. 3700 feet of waterfront on deep Bee Hollow Cove on the Lake. Many waterfront and lake view build sites sit on the property, that is surrounded by high-end waterfront homes and ranches.

Lake View

Located in the Lago Vista, water and sewer will be provided by the city. Lago Vista ISD is an exceptional school district, with Lago Vista High School rated as one of the top ten high schools in Central Texas (Austin Monthly). With the completion of the 183A Tollway, this area will not just be attractive to second home buyers from around Texas, but for primary residences as well.

This location would make an excellent personal ranch or land investment. Take your chance to see the listing today.

Sandy Ranch

CNN Money’s article “What Housing Bust?” covers what areas of the nation have done well in the housing market, and why. According to writer Les Christie, areas with plenty of available developable land have smaller swings between home price highs and lows. This is because, when the demand for housing spikes, home builders are able to build more homes and keep the housing prices in check. Speed is also of the essence here, home builders need to be able to build quickly, thus, the need for available land.

“Elasticity of supply,” this is called, according to Mark Fleming, chief economist for First American CoreLogic. And Christie says, it is the definition of Texas real estate, and similar throughout all the metro areas.

“Texas is the poster child for these ‘steady Eddie’ states. House prices during the past three years rose in all 26 metro areas with gains ranging from 2.8% for Dallas, the second largest metro area, to 9.7% in Houston, the largest, to a whopping 32.5% in Odessa.”

This is part of what is causing the metro areas in Texas, including Austin, to grow so rapidly. Landowners in the Austin area should continue to see their investments in high demand for buyers and developers.

Palmco Inc., a south Texas developer with an office in Austin, is proposing to build Capitol Terrace, a 12 story mixed use development. In it would be 30 upscale apartments aimed at lobbyists and other government employees, five floors of office space, a white tablecloth restaurant and shops. They plan on adding wide, tree-lined sidewalks to encourage pedestrian use and vibrancy, says their attorney. The development will also have five levels of parking, two underground, and will sit on four lots on one fourth of a city block on the southwest corner of 14th Street and Lavaca.

The one catch: the developer plans on a building up to 163 feet high, where current city zoning only allows buildings up to 120 feet in height. The group is requesting a zone change, which will go before City Council on December 10th. Pending approval, building should begin in second quarter 2010. It is Palmco’s first project in Austin.

Yesterday, Forbes released their feature on US Cities on the Rise: vibrant cities welcoming the most newcomers. They’re not the big cities you’d think they are – in fact, New York is at the bottom of the list. It turns out Americans are most attracted to “job growth centers,” and college towns.

Three of the cities on the list are home to major universities, including Austin, Texas. Many young professionals, and everyone in thes areas, are very welcoming to newcomers. “If there are lots of newcomers, it’s easier to make friends; there’s a sense of vibrancy there,” says a senior fellow of the Brookings Institution, about these areas. “Places that don’t have a lot of new migrants tend to be older and more stagnant. They’re also more close-knit.”

Another draw to these cities are the universities themselves: universities are top employers and offer a steady flow of jobs. The population is educated, and it helps cities like Austin thrive. Says a senior fellow at the Joint Center for Housing Studies at Harvard, “these places retain people after they’ve graduated, and attract like-minded people.”

Austin sits at #4 on the list of US Cities on the Rise, with a population just over a million people and just over 6% of them having relocated to the area in 2008.

Customer satisfaction with home builders is up, driven by "intensified competition"

The New Home Builder Customer Satisfaction Survey from J.D. Power and Associates generates satisfaction ratings for 24 markets across the US, including Austin. 12 home builders in Austin were examined and rated.

For the second year, overall customer satisfaction in the 24 markets is up, to an average of 811 points out of 1,000 – up 32 points (from 779) in 2008, with overall satisfaction increasing in 22 of the 23 markets studied both years.

Problems reported decreased in all of the 23 markets studied both years. (The most common quality issues were landscaping, heating/air conditioning, and kitchen cabinet quality and finish.)

The reason for the positive increase in consumer ratings? Researchers have tied it to increased competition among home builders in the recession. “Fierce competition among home builders has led to a market where only the strong survive,” says Paula Sonkin, VP of the Real Estate and Construction Industries Practice at J.D. Power and Associates. “This is great news for new home buyers – particularly first time buyers – since builders are offering unprecedented high levels of quality, value and service at relatively low prices.”

Customers can also expect their homes to be completed faster: homes delivered both completely finished and on time increased to 76%, from 70% in 2008.

In this market, what consumers value has changed: the importance of workmanship and quality “increased notably” from the year before, whereas the builder’s sales staff and construction manager became less important. Buyers are looking for more quality for their money, and care less about the customer service experience. 

Peaceful Hill Country Escape, featuring a green rainwater collection system

Another point of interest for buyers is the Green factor: 31% of buyers qualify their home as environmentally friendly, but 65% say their builder did not indentify their house as being so. Buyers are seeking out Green homes to save on power and heating, to save water, and to reduce their impact on the environment, in that order. According to Sonkin: “Builders that neglect to point out environmentally friendly home features to buyers are missing a very important opportunity. New home buyers are increasingly seeking out green home features and the benefits they bring in terms of energy and cost savings.”

Eagles Glen

The master planned community of Steiner Ranch is exceeding expectations, according to developers and agents, because of its great amenities and the strong reputation of local schools, Texas A&M’s Real Estate Center and the Austin Business Journal report.

In 2009, even with the economic downturn, 143 homes were sold in Steiner Ranch at the end of August. Compared to 164 homes by that time in 2008, just a 13% drop. Compared to the 35% drop the Central Texas area saw, particularly early in 2009, the Steiner Ranch development is going faster than planned. The median sale price for a home in Steiner reached $350,000 this year, also a significantly stronger performance than the rest of the area.

Currently in development for Steiner Ranch is Longhorn Village, a retirement community with assisted living services aiming to give University of Texas alumni a chance to reconnect with the University life.

Steiner Ranch, located northwest of the city on RR 620, is near both Lake Travis and Austin. To read more about our featured property on Eagles Glen and some more amenities Steiner has to offer, see here.