Austin Chamber of Commerce 12 •07 State of the Economy • Real Estate Market • As presented to...
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Transcript of Austin Chamber of Commerce 12 •07 State of the Economy • Real Estate Market • As presented to...
Austin Chamber of Commerce
12•07 State of the Economy
• Real Estate Market •
As presented to the
Keller Williams Agent Leadership Council
Real Estate MarketOffice
Rent per sq. ft. per yearVacancy
rateLow High
Class ADowntown $23.02 $40.00 16.0%
Suburban 15.00 34.00 10.0
Class BDowntown 13.00 27.25 31.0
Suburban 7.00 28.55 15.0
Source: NIA Direct, 2007 Global Market Report.
Real Estate Market: Office2nd Quarter 2007
Total
sq. ft.
VacantNet
absorp-tion, YTD
Under construc-
tion
sq. ft.
Asking rent
Sq. ft. % Class A Class B
Total 39,268,469 4,516,667 11.5% 588,055 2,451,734 $29.12 $21.78
Downtown 8,420,366 1,095,387 13.0 70,973 68,000 31.51 27.26
Suburban 30,848,103 3,421,280 11.1 517,082 2,383,734 27.51 20.65
Source: Grubb & Ellis.
Real Estate Market: Industrial2nd Quarter 2007
Total
sq. ft.
Vacant
sq. ft.
Vacancy
rate
Net absorption,
YTD
Under construc-
tion
sq. ft.
Asking rent
Total 68,400,987 5,019,815 7.3% 2,606,413 1,433,009 $7.75
General Industrial
25,111,691 922,595 3.7 1,923,261 1,009,209 6.38
R&D/Flex 17,919,716 2,635,385 14.7 447,116 86,000 9.13
Warehouse/ Distribution
25,369,580 1,461,835 5.8 236,036 337,800 6.97
Source: Grubb & Ellis.
Favorable Real Estate Market
Opportunities abound for growing companies with long-term expansion plans. Thanks to an abundance of office and industrial space and a wide variety of environmental characteristics, the region can accommodate nearly any operation, large or small.
As of 2nd quarter 2007, Austin has over 7.4 million sq. ft. of vacant office space and an 12% vacancy rate. Space available in the industrial market totals over 7.4 million sq. ft. and the industrial vacancy rate is also 10%.
Ample office space is available in a vibrant downtown as well as a variety of suburban markets. In addition, the area has several campus-style facilities and incubator space available for lease.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2004J an
2004Apr
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Housi
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Multi-FamilySingle-Family
Residential PermitsAustin MSA
Source: U.S. Bureau of the Census.
Nearly 21,600 permits were issued in the last 12 months (14,690 single family & 6,909 multifamily).
Growth Rates: Housing Units Authorized by Building Permits
12.3%
-31.9%
-14.7%
-44.3%
-28.4%-26.0%
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
2005-2006 '06-'07 YTD J un 06-J un 07
Austin MSA United States
Source: U.S. Bureau of the Census.
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
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2004Apr
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2007J an
2007Apr
Mill
ions
Valuation of New Housing Units Authorized by Building Permits
Austin MSA
Source: U.S. Bureau of the Census.
Monthly average: 2005 $234M2006 $262M 2007 $234M (YTD)
Growth Rates: Valuation of Housing Units Authorized by Building Permits12.1%
-22.9%
-11.5%
-54.0%
-25.1% -26.4%
-60%
-50%
-40%
-30%
-20%
-10%
0%
10%
2005-2006 '06-'07 YTD J un 06-J un 07
Austin MSA United States
Source: U.S. Bureau of the Census.
Residential PermitsAustin MSA
0
4,000
8,000
12,000
16,000
20,000
24,000
Housi
ng U
nit
s
Source: U.S. Bureau of the Census.
Housing permits increased 31% in Austin in 2005 over 2004, compared to 5% nationally.
Home SalesAustin MSA
0
500
1,000
1,500
2,000
2,500
3,000
3,500
In Austin, home sales were up 12.3% in 2006 over 2005. Sales were down 8.4% nationally.
YTD, Austin sales are 1.5% below last year & national sales are down 9.3%.
Source: Real Estate Center at Texas A&M University.
Residential Permits by County2006 Austin MSA
Caldwell0.3%
Bastrop1.2%
Williamson28.6%
Travis60.3%
Hays9.6%
Source: U.S. Bureau of the Census.
Bastrop 302
Caldwell 84
Hays 2,518
Travis 15,738
Williamson 7,454
Austin MSA 26,096