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.