Gedalia Partnerships LP, a Dallas-based developer, revealed grand plans for a $15 million mixed-use project on a 1.9 acre tract near East Seventh and Chicon streets, according to $15M East Austin plan will raze old warehouse, add shops, homes (Austin Business Journal, 1-1-10). Gedalia plans to raze an abandoned 10,000 square-foot warehouse in order to develop 85 apartments and approximately 18,000 square feet of retail space. In addition, Gedalia has obtained a construction permit for Sungari Pearl, a 52-unit condominium complex with 7,000 square feet of retail space in the same area. Both projects would complement the city’s overhaul of the East Seventh Street corridor from Navasota Street to North Pleasant Valley Road. Read East Austin in store for multi-million dollar revamp (Austin Business Journal, 1-1-10)
Please visit www.austinsource.com to view the Year-End 2008 Industrial Market Report.
Austin set a historical record in 2008 for most new industrial space added in a single year. The industrial-investment property tracked by NAI Austin brokers expanded to 36.9 million square feet in 2008, a 7 percent increase in total capacity over the 34.5 million square feet at year-end 2007. The overall vacancy rate at the end of 2008 was 18 percent, which, although high, did not approach the record vacancy rates of 20-21 percent during the high-tech bubble years of 2002-2004.
At year-end 2008, Austin’s industrial market recorded a net positive absorption of 8,671 square feet in a market of 36.9 million square feet. At the half-year mark in June, absorption was a positive 253,141 square feet, despite the slowing economy since late 2007. By the end of December, following a near total meltdown of the national economic health in the second half of 2008, Austin’s absorption slipped to a negative 244,470 square feet, leaving a net positive absorption of 8,671 square feet for 2008. The slide is likely to continue through 2009, but no one can predict how much.
Lease rates are coming down as landlords with the flexibility to do so try to retain or attract what movement there is in the market. Transactions for the last half of 2008 slowed dramatically, and the recent trend of higher absorption and leasing activity in the third and fourth quarters of the last several years ceased.
Nonetheless, if credit access and reliability can be stabilized, the Austin market should outperform the national market.
NAI Austin is one of Austin’s most experienced commercial real estate firms and the Austin area representative for NAI GlobalTM, the industry’s largest global network of real estate service-providers, comprising 5,000 brokers in 325 offices serving more than 55 countries worldwide. For more information on NAI Austin, please visit www.naiaustin.com.
NAI Austin industrial specialist Jerry Heare along with Oxford Commercial brokers Rick Whiteley and Jeff Coddington represented Texas Electric Cooperatives (TEC) in locating and purchasing their new Austin headquarters location. The 7,700 sf office condo is located at 1122 Colorado Street, on the 24th floor of the Westgate Tower. The suite was purchased from Kidd, Whitehurst & Harkness General Partnership.
TEC represents cooperative electric utilities across Texas as well as offering repair and remanufacturing services, waste disposal and environmental consulting. They operate the only cooperatively owned utility pole production facility in the nation. The new, centrally-located downtown office will complement the existing 160,000 sf facility in Georgetown and the 50-acre manufacturing operation in Jasper.
NAI Austin is one of Austin’s most experienced commercial real estate firms and the Austin area representative for NAI GlobalTM, the industry’s largest global network of real estate service-providers, comprising 5,000 brokers in 325 offices serving more than 55 countries worldwide. For more information on NAI Austin, please visit www.naiaustin.com.
NAI Austin retail specialists Sherry Sanchez and Travis Waldrop represented Sushi Zushi in the leasing of 5,322 sf of retail space located at 1611 West 5th Street. This will be the first Austin location for Sushi Zushi and their sixth in Texas.
Sushi Zushi serves an unusual variety of Japanese cuisine, offering both sushi and cooked items on their large menu.
NAI Austin is one of Austin’s most experienced commercial real estate firms and the Austin area representative for NAI GlobalTM, the industry’s largest global network of real estate service-providers, comprising 5,000 brokers in 325 offices serving more than 55 countries worldwide. For more information on NAI Austin, please visit www.naiaustin.com.
Birch, Becker & Moorman, LLP has subleased 1,700 square feet of office space in Stillhouse II. The condo became available in the course of the merger between Stewart Title Austin and Gracy Title Company. The new entity, now known as “Gracy Title, a Stewart Company,” is headquartered at 100 Congress.
Lise Luchsinger Wineland, an Office specialist with NAI Austin, represented Gracy Title in the transaction.
NAI Austin is one of Austin’s most experienced commercial real estate firms and the Austin area representative for NAI GlobalTM, the industry’s largest global network of real estate service-providers, comprising 5,000 brokers in 325 offices serving more than 55 countries worldwide. For more information on NAI Austin, please visit www.naiaustin.com.
NAI Austin Retail Specialists Sherry Naquin Sanchez and Travis Waldrop represented Jimmy John’s in locating a second downtown Austin location. This space, located at 816 Congress, will alleviate some of the demand on the 6th & Congress location, which will remain open.
NAI Austin is one of Austin’s most experienced commercial real estate firms and the Austin area representative for NAI GlobalTM, the industry’s largest global network of real estate service-providers, comprising 5,000 brokers in 325 offices serving more than 55 countries worldwide. For more information on NAI Austin, please visit www.naiaustin.com.
