Austin Texas Real Estate Blog

The State of Texas is prepared to spend big money to lure social networking site Facebook to the Austin area. The $1.4 million incentive package is intended to make Austin even more attractive to Facebook, which has its main corporate headquarters in Palo Alto, California and has recently announced plans to open a national office outside the California area. The new office is expected to provide around 200 well-paying jobs in the sales, customer service and risk management fields, making it a valuable asset for the city Facebook selects. The incentive package offered by Texas will be funded by the Texas Enterprise Fund and is dependent on the city of Austin agreeing to ante up approximately $200,000 worth of local incentives; the proposed incentive plan will go before a public hearing on March 11, 2010.

Austin has long been considered one of the high-tech centers in the region, and the addition of a national Facebook office would add to the city’s well-deserved reputation. Chief Operating Officer of Facebook Sheryl Sandberg indicated that Austin was under serious consideration as a potential site for the office, stating “Austin, with its deep talent pool, would allow us to hire the high-caliber employees we need to properly serve the people, advertisers and developers that rely on our service.” Facebook currently has over 400 million active users, so its presence in Austin would be a high-profile addition to the city’s already vibrant high-tech industry scene.

This is not the first time a major online company has chosen Austin as a site for expansion; Google opened an office in Austin in 2008, but closed it along with several other offices worldwide soon after due to financial cutbacks throughout the company. While only twenty jobs were lost due to the closing, the Austin community felt the blow to its reputation as a high-tech hub. If Austin is able to snag the Facebook office, the effects will be felt not only economically but also psychologically throughout the region.

Facebook’s interest in opening an Austin office follows on the heels of recent announcements by LegalZoom and Pioneer Surgical Technology to open offices in Austin; LegalZoom’s new expansion is expected to bring around 600 jobs to Austin in the next few years, while Pioneer Surgical’s new office will employ around 30 people when it opens in the second quarter of this year. These acquisitions are expected to boost the local economy still further in the latter part of 2010.

Austin commercial real estate foreclosures in 2009 increased to more than double their 2008 levels, reflecting the effects of the recent nationwide real estate market difficulties. Austin suffered the highest rate of commercial foreclosures in the state of Texas, but other large metropolitan areas were significantly affected as well. This increase is attributed in part to large-scale layoffs in the manufacturing sector, which have created problems for a number of local industrial concerns. The commercial foreclosure trend is expected to continue throughout the first half of 2010, due to continuing economic woes; experts warn against overly optimistic expectations for the manufacturing and commercial sectors. Approximately $500 billion in commercial loans are expected to come due for refinancing in 2010, with as much as $800 billion more in 2010; this will likely spur additional periods of high foreclosure rates as businesses struggle to find financing in the current lending climate.

Industrial real estate properties were hardest hit, with a 400 percent increase in foreclosures over 2008. Retail shopping centers and vacant land also experienced a less dramatic rise in foreclosure rates. Some economic analysts see this as an opportunity for businesses to acquire additional space at bargain prices; with real estate prices in some areas at near-record lows, many companies that are currently renting space may be able to purchase property instead. This may actually spur an increase in commercial real estate sales during 2010 as businesses take advantage of the opportunity to expand their holdings at discount prices.

Commercial foreclosures represented about seven percent of foreclosures in the Austin area. One bright spot in the economic outlook for these properties is the increase in companies looking to expand into the Austin business market. Austin is an attractive location for commercial relocation due to its highly-trained labor force and resilient economic base. Most analysts in the area expect that corporate relocations and expansions will continue to increase in Austin, spurred in part by the lower cost of commercial real estate in the overall market.

According to the Urban Land Institute, Austin is one of the real estate hot spots for 2010 development. Along with Washington, D.C., Boston, San Francisco and New York City, Austin is expected to see a surge in commercial development in coming years; the study indicates that 2010 will be one of the best times to buy, coming as it does at the expected bottom of the cyclical market. For those in a position to acquire real estate at this advantageous time, the return on investment is likely to be exceptionally high; 2010 may well be the year to watch in terms of commercial real estate investments.

Austin’s low rate of state tax and continuing commitment to corporate investment is credited with a large part of its economic stability and potential for growth. Its position as the capital of Texas provides robust support for its local economy, while its highly desirable residential environment has helped to keep housing prices stable during recent housing industry downturns. Austin’s high-tech industrial base also contributes to the overall real estate market stability, ensuring high demand for commercial and residential real estate continues well into the future.

The study also outlines some strategies for commercial real estate investors throughout the U.S. market. One of the most crucial is, of course, to invest in high-growth areas like Austin; this ensures the ability to attract and retain high-quality tenants for commercial properties. Additionally, investors should be highly selective in their choice of properties. Class A properties offer higher quality in materials and manufacture, and therefore represent a better long-term investment than other buildings. Location remains a key element to return on investment; cities like Austin offer investors a much better chance for a high rate of return on their initial investments. The study also recommends sticking to a cash basis for all real estate transactions; this will allow investors to take advantage of exceptional opportunities as they arise. Finally, the Urban Land Institute study recommends patience; by remaining steadfast and purchasing wisely, investors will be set to reap the profits when the commercial real estate rebounds over the coming years.

Austin’s real estate market offers unique advantages to investors and homebuyers. The commercial real estate picture in Austin is already showing signs of recovery, making this an optimal time for investors to jump into the market and take advantage of current low prices. Austin’s combination of desirable residential areas and robust economic growth makes it the perfect arena for commercial real estate investment in today’s market.

Invest in Commercial or Residential properties.

There are a lot of decisions that must be made when investing in Real Estate properties. Each property Investment will have its own unique requirements and conditions. Therefore, strategic planning is of the utmost importance.

Some of the issues you will have to consider before planning are your budget, and financing. Knowing what your budget will allow will guide you to the kinds of investment options that will qualify as a viable plan.

There are two initial investments in which you will have to decide. The investment is to either go with commercial properties, or to go with residential properties. Each property investment, whether commercial or residential, will have a unique subset of requirements, regulations, zoning laws, tax requirements, and the list goes on.

Residential real estate properties offer two choices in the type of residential investment property you choose to make: single family dwellings or multi-family dwellings. The single family dwelling is a detached home zoned for a single family to occupy. Another single family investment dwelling is a townhouse which is defined as, a luxurious house in a large city occupied entirely by one family, or one of a row of houses joined by common sidewalls. They are subject to the occupant board to address common living areas and subject to maintenance costs.

Multi-family dwellings range from a duplex to condominiums. The duplex is defined as a house having separate apartments for two families. An example of this is a two-story house having a complete apartment on each floor and two separate entrances.

Condominiums can be either commercial or residential properties and are defined as: an apartment house, office building, or other multiple-unit complex, the units of which are individually owned, each owner receiving a recordable deed to the individual unit purchased, including the right to sell, mortgage, etc., that unit and sharing in joint ownership of any common grounds, and passageways. They are subject to the occupant board to address common living areas and subject to maintenance costs.

Commercial Real Estate properties can be designed to be whatever the renter/leaser requires. Wikipedia defines Commercial property as including office buildings, industrial property, medical centers, hotels, malls, retail stores, shopping centers, farm land, multifamily housing buildings, warehouses, garages, and industrial properties.

Whatever investment you decide to go with it is always a good idea to check with a professional opinion from an industry specialist such as Joe Cline, real estate agent.

Austin has been a city at the top of the list for cities that have embraced the green movement. Many local builders are using sustainable materials to build new homes. Energy efficient appliances are becoming the norm as opposed to upgrades options. Now the movement has moved outside. Many new commercial buildings are including landscape architecture with a green touch. The result is a beautiful place for employees to relax and, in some cases, to work.

The outside of commercial buildings has long been an ignored space. With the new focus on conservation, many businesses have begun to realize that utilizing this otherwise unused space can create a better working environment. Native plants and sustainable materials are being used to make these outdoor settings more eco-friendly. The most notable recent eco-friendly landscaping project in Austin is the Austonian building. When complete the building will include a 17,000 square foot rooftop garden that includes a 75 foot pool with fountains and an energy saving water irrigation system. That system will literally use rainwater to care for its plants. There will also be a dog park and herb garden. Landscape architecture firm, TBG Partners has been called upon to create similar outdoor havens for companies like the Ronald McDonald House and Dell’s Children’s Medical Center.

There is an increasing desire to conserve as much energy as possible and businesses in Austin have stepped up their efforts to lend a helping hand to the environment. As the trend continues to become the norm here, more companies are expected to follow.

One of the primary reasons you want to purchase an office condo rather than rent is the flexibility you’ll have as an owner. You’ll be able to expand if need be, redesign when desired and make any other necessary changes under your own discretion. However, in order to properly do that you’ll have to start with a space conducive to a future of growth – one that has the potential to fit your business no matter what happens. That is where Shoal Creek Office Condos, located at 8500 Shoal Creek Boulevard, comes in handy.

The condos in this office building can be purchased separately or together. When you purchase single spaces, you have a size range that stretches from 792 square feet to more than 18,000 square feet. That means that regardless of what size your business is you can find the office for you. And if you need more than one – you want a suite, perhaps – you can buy more than one space. They are sold with you in mind, making the entire process infinitely more convenient than you had ever imagined.

Once you own them, well, you own them. You can do what you will to the interior of the condo (or condos). You can paint, rearrange, add and take away from the structures that have already been created. Of course, you may not want to do any of that. The sleek design of the Shoal Creek Office Condos could be exactly what you were looking for, as they combine reputability with a welcoming atmosphere, making any individual feel immediately confident and comfortable. They are offices built to appeal to the masses but ready to modify for you. They are a variety bag of potential. The only question is why haven’t you purchased one yet?

Purchasing an office condo is a logical investment, giving you the opportunity to profit from your business in more ways than one. As the property grows in market value, so do the funds you use to obtain the space. You gain from the buy, making more money and continually accruing equity. But that’s only true if the property you have is able to grow in value. If it’s an old outdated structure in a dwindling community, that won’t happen. On the other, if it’s a modern, up-to-date building with all the latest conveniences, it will. And that is part of what makes Shoal Creek Office Condos such a sound investment. They, after all, were just recently remodeled.

The offices now offer beautifully renovated interiors, with sparkling common areas as well as state-of-the-art private areas awaiting your stamp of personality. The security system allows you and only you to enter the building whenever you please, using a fob after six to get in. This means you can work according to your own schedule not the building manager’s and not fear that a stranger will get near your work or assets. The newly furbished building assures you that nothing disastrous will happen to the structure and the developer’s obvious concern for quality guarantees that in the years to come, Shoal Creek will only improve with the times.

The offices at Shoal Creek are the perfect place for you to start or revitalize your business. They are an investment you can make knowing that it is an investment that will benefit you for years to come – growing as your business does, in leaps and bounds.

When selecting your office condo, you’ll want something in the city – something with a steady traffic flow that will enable you to maintain a constant stream of business. But you won’t want something overly urban. Too much of a metropolitan environment could crowd you and keep away some of your best potential clients. Therefore, you need an in between, an area with a slightly subdued but still healthily active urban atmosphere. Fortunately, the Shoal Creek Office Condos, at 8500 Shoal Creek Avenue, offer you just that.

The property itself combines a modern, city design with artful landscaping. The building has sleek, straight edges as well as classy curves. Giant windows open up the interior and up-to-date indoor amenities affirm the fact that you are in a state-of-the-art metropolitan structure. But so as not to overwhelm the visitor with city, the lawn and lot around the building are bursting with trees and well-groomed shrubs. The manicured landscaping tones down the urban feel, making it more comfortable and welcoming.

The surrounding area does the same. Shoal Creek and nearby Allandale are a part of Central Northwest Austin. As such, the areas are bustling with business. More and more companies are finding their way into the previously quiet neighborhoods, adding new life and vigor. But even as they grow, they retain their original attraction, with beautiful homes, peaceful streets, private schools and large parks, such as the Beverly Sheffield Park, which has an Olympic-size swimming pool, a children’s wading pool, playgrounds, picnic areas, tennis courts and a pond. It is, as the property is, the perfect combination, making Shoal Creek Office Condos, the perfect location.