Austin top commercial real estate market in U.S.
Austin is No. 1, rising from sixth place a year ago to first in overall real estate prospects and from fourth to 1stt place in local expectation of investor demand in 2020. In identifying Austin as a top-tier city several years ago, our analysis considered many salient features: its slogan (“Keep Austin Weird”), deep pool of talent, unique and popular lifestyle, and ambitious commitment to business and real estate expansion. Austin has the highest projected population growth rate for the coming five years among the 80 markets we analyze. Development is booming and the landscape studded with impactful projects: Apple is building a $1 billion North Austin campus; a multideveloper transit-oriented development is underway near downtown on Lady Bird Lake; the new Dell Medical School recently opened at the University of Texas; and a major airport expansion is underway. Capital is abundantly directed toward Austin—so much so that some locals wonder about the underwriting assumptions of outside investors. Transaction activity in Austin is above what it you would expect from a market of its size, and 2019’s early results are above the three-year historical average. Our survey respondents rate Austin a solid “buy” for industrial, offices, and apartments for the coming year