Downtown Austin Market News

[KevinFromTexas]

http://www.statesman.com/news/busine...ingjob-/nTsLd/

Posted: 4:00 p.m. Thursday, Jan. 10, 2013
Austin area office market ends year on upswing
Job growth pushes occupancies, rents higher

By Shonda Novak
American-Statesman Staff

Central Texas’ office market ended on a strong note in 2012, with occupancy and rent rates for first-class space continuing their upward trend, according to Oxford Commercial.

The year was marked by brisk activity in office-building sales, including 19 transactions pending at year’s end, Oxford said.

In its fourth-quarter report, Oxford Commercial said the occupancy rate for top-flight — or Class A — space rose to its highest level since 2007. It settled a smidge short of 87 percent, up from 82.5 percent at the end of 2011, Oxford said. Rents for Class A space averaged $30.50 per square foot , up from $28.31 in late 2011 — a 7.7 percent increase, Oxford said.

During 2012, the market absorbed nearly 1.5 million square feet of space — 50 percent more than in 2011, and the highest amount since 2000, said Greg Johnston, an Oxford partner.

[KevinFromTexas]

http://www.bizjournals.com/austin/pr.../going-up.html

Feb 1, 2013, 5:00am CST UPDATED: Feb 1, 2013, 9:51am CST
Going up

The Central Texas housing market is so hot, builders wish they had more lots to buy; housing supply now 3 months

Robert Grattan
Staff Writer-
Austin Business Journal

Homebuilders in Austin had a banner year in 2012, with the number of residential permit applications at City Hall rising more than 116 percent over 2011 and single-family housing starts beating expectations by about 25 percent.

[KevinFromTexas]

http://www.statesman.com/news/busine...nt-supp/nWWgN/

Posted: 4:29 p.m. Saturday, Feb. 23, 2013
Despite building boom, Central Texas apartment supply still lagging behind demand

Slower rent growth forecast this year amid a wave of new supply

By Shonda Novak
American-Statesman Staff

Here’s some news that won’t come as a surprise to Central Texas apartment dwellers: Rents in the area keep going up, continuing a three-year climb.

The recession dried up funding for new apartment construction during the past few years, so very few new units were added to the market. And even though thousands of apartments are under construction or in the planning stages now, it will take time to catch up to the pace set by the Austin region’s job and population growth, experts say.

Charles Heimsath, a local real estate market expert, tracks rents and occupancies in Austin’s apartment market. Last year, Austin’s occupancy rate citywide hit an all-time high of nearly 98 percent in June, settling slightly lower by year-end at 97.4 percent, Heimsath said. Rents peaked in December, averaging $842 for one-bedroom units and $1,115 for two-bedroom units, Heimsath’s research shows.

Last year, 3,528 new apartment units were built in the Austin region, said Heimsath, president of Capitol Market Research. Currently, 12,592 units are under construction in Central Texas. Nearly 8,000 of those will open in 2013, and the rest in 2014, he said.

[KevinFromTexas]

http://www.statesman.com/news/busine...hotel-c/nWjNY/

Posted: 2:00 p.m. Wednesday, March 6, 2013
Signs indicate Austin’s historical Driskill Hotel changing hands

By Shonda Novak
American-Statesman Staff

The historical Driskill Hotel in downtown Austin appears to be changing hands to Hyatt, although the buyer and seller are not confirming a sale.

The stately 188-room luxury hotel — one of Austin’s oldest and best-known, and a landmark at West Sixth and Brazos streets — has been owned since October 2005 by Los Angeles-based Lowe Enterprises Investors, which purchased it on behalf of an investor client.

A pending sale of the iconic hotel has been talked about for some time by hotel employees and the Austin real estate community, and in recent weeks Hyatt’s name emerged as the prospective buyer.

More evidence came Wednesday, when Hyatt’s official jobs application website posted numerous openings for Driskill jobs, with positions including cooks and servers. On Tuesday, Hyatt’s official website had alink that listed the hotel among Hyatt’s properties, although that link was disabled Wednesday.

[KevinFromTexas]

It's official.

Hyatt completes acquistion of historical Driskill Hotel

[MichaelB]

Originally Posted by KevinFromTexas

It's official.

Hyatt completes acquistion of historical Driskill Hotel

i'm scared. They are hit and miss on respecting properties. Big corporations are rarely good at maintaining "character".

Fingers crossed!

[GoldenBoot]

Originally Posted by MichaelB

i'm scared. They are hit and miss on respecting properties. Big corporations are rarely good at maintaining "character".

Fingers crossed!

Which label will it be under: Park Hyatt? Andaz? Grand Hyatt? Hyatt? Hyatt Regency?

For accounting purposes...it must be under an umbrella (label).

[LoneStarMike]

Originally Posted by GoldenBoot

Which label will it be under: Park Hyatt? Andaz? Grand Hyatt? Hyatt? Hyatt Regency?

For accounting purposes...it must be under an umbrella (label).

Not sure if you read the article, but it says:

The property will continue to be marketed as the Driskill Hotel, under the umbrella of Hyatt Hotels & Resorts, Hyatt officials said.

[Austin_Expert]

It could easily be labeled something along the lines of The Driskill Park Hyatt or along those lines. I have little doubt that you will know you're on a Hyatt property.

[KevinFromTexas]

http://www.statesman.com/news/busine...e-w-hot/nW5mq/

Posted: 1:51 p.m. Wednesday, March 27, 2013
Downtown Austin’s Block 21 — which includes the W Hotel — is up for sale

By Gary Dinges and Shonda Novak
American-Statesman Staff

Downtown Austin’s Block 21 – home to the W Austin Hotel, the ACL Live concert venue and an assortment of shops, restaurants and offices – is up for sale.

Marketing materials obtained by the American-Statesman don’t list a price for the 2-year-old, 37-story tower at 200 Lavaca St., which was built by Austin-based Stratus Properties at a cost of $300 million.

[GoldenBoot]

Originally Posted by LoneStarMike

Not sure if you read the article, but it says:

Actually, they will need to list it under one of those brands. Even though outsiders may never know which brand.

Each Hyatt brand is it's own, separate entity. "Hyatt" does not own any individual hotels under the umbrella of "Hyatt Hotels & Resorts."

[lzppjb]

Originally Posted by KevinFromTexas

http://www.statesman.com/news/busine...e-w-hot/nW5mq/

Stratus has partnered up recently to back Fun Fun Fun Fest in a big way.

[royiv]

Originally Posted by GoldenBoot

Actually, they will need to list it under one of those brands. Even though outsiders may never know which brand.

Each Hyatt brand is it's own, separate entity. "Hyatt" does not own any individual hotels under the umbrella of "Hyatt Hotels & Resorts."

Hyatt operates a handful of boutique or locally unique properties under the Hyatt umbrella as opposed to the more well known brands of Hyatt Regency, Park Hyatt or Grand Hyatt. Driskill will be operated as a Hyatt property.

[KevinFromTexas]

http://www.statesman.com/news/busine...fice-ma/nXCsq/

Posted: 3:07 p.m. Thursday, April 4, 2013

Job growth continues to buoy Austin area office market

By Shonda Novak
American-Statesman Staff

Oxford Commercial reported Thursday that top-tier (Class A) office space was 87.3 percent occupied on average by the end of March, compared with 84.4 percent at the end of the first quarter of 2012. Rents for that top-tier space averaged $31.14 per square foot, up from $28.99 a year ago March, Oxford said.

Occupancy rates have trended up for nine quarters in a row, Oxford said, and the region is experiencing a shrinking amount of large blocks of space as technology and other firms have expanded and outside companies have moved in.

Several developers are poised to start construction on new office developments, and Land said he thinks the market is strong enough “to kick off multiple projects” in the next 12 months.

[lzppjb]

Great news!

[NYC2ATX]

"MULTIPLE PROJECTS"

[MightyYoda]

This is good news. That would put it above 90% by next year and any office space that came online would be 2+ years out. Hopefully this means both ready to go office buildings can start later this year.

[KevinFromTexas]

http://www.bizjournals.com/austin/bl...wn-office.html

Apr 5, 2013, 2:35pm CDT
How tight is Austin's downtown office space market? Depends on who you ask

Anthony Quesada
Managing Editor-
Austin Business Journal

Commercial real estate professionals lack consensus on how tight the market for downtown office space actually is.

In exploring this issue, Austin Business Journal reporter Jan Buchholz found that brokers at Thomas Properties Group said there are blocks of large contiguous space available on multiple floors in multiple buildings. Thomas Properties would know, given that the Los Angeles-based brokerage owns several large buildings downtown and manages a few others.

Thomas Properties said that of the 2.4 million square feet it owns in five Class A office buildings downtown, it has about 337,000 square feet available now or within the next year. By next summer, another 69,000 square feet will add to the inventory. Some buildings will have close to 100,000 square feet available, much of it on contiguous floors.

[KevinFromTexas]

http://www.statesman.com/news/news/b...closing/nXFc7/

Posted: 12:08 p.m. Sunday, April 7, 2013
Fran’s Hamburgers on S. Congress closing

By Samantha Womack
American-Statesman Staff

4 p.m. update: Burgers, drinks and sides have been served for the last time at Fran’s Hamburgers on South Congress. The iconic diner ran through its food supplies about four hours after opening at 11 a.m. Sunday.

The long-time eatery is closing its doors after 40 years of business at 1822 South Congress Ave. in Austin.

Manager and son of Fran, Ed Terrazas said the restaurant’s lease was up and the family chose not to renew.

[KevinFromTexas]

http://www.statesman.com/news/busine...rtment-/nXB97/

Posted: 6:32 p.m. Saturday, April 6, 2013
Amid building boom, first of several new apartment towers debuts downtown

By Shonda Novak

American-Statesman Staff

The first new tower in more than two years has opened in downtown Austin, amid a wave of new apartment construction that underscores continued strong demand for downtown living.

The first tenants recently moved into Whitley, a 16-story project with 266 apartments at Third and Brazos streets.

And more units are coming, with construction under way on four other projects that will add another 1,121 apartment units to the central business district within the next two to three years: the 320-unit, 23-story SkyHouse tower on Rainey Street; the Bowie, a 36-story tower at 311 Bowie St. that will have 358 units as well as office space; an 18-story Gables Residential project with 222 apartments next to the former Seaholm Power Plant site; and a 24-story tower with 221 units that Behringer Harvard is developing at West Seventh and Rio Grande.

Downtown apartment occupancies reached their highest level on record, 98.3 percent as of late February, according to Capitol Market Research, an Austin-based real estate consulting firm. Downtown rents averaged $2,308 a month, with the average unit size being 991 square feet, said Charles Heimsath, the firm’s president.