Here in Austin, there seems to be daily headlines about a tech giant expanding operations in the city. And we know as savvy real estate investors what that does to property values. With Austin’s traffic problem not getting any better, it’s safe to assume that these techies will want to live close to work. So where will all these new tech jobs be?
North Central Austin
The area that gets the most love is North Central Austin. It’s historically been a tech hub anyway and is still offering the greatest expansion opportunities for the tech big boys. Of course the major news here is Apple’s new $1B campus on Parmer Lane. Apple will add 5,000 new employees to it’s existing 6,200 employee workforce.
Closer in to town, The Domain is set to be Austin’s second downtown. Last fall it was learned that Facebook will be leasing the entire Domain 12 tower being built in Domain Northside. Domain 12 will be about 320,000 square feet. Completion is expected in the fourth quarter of 2019. HomeAway is already leasing the newly completed the 16-story Domain 11 across the street. Additionally, it has just been announced that Amazon will be leasing 145,000 square feet on four floors of the 15-story high-rise in Domain Northside. They already occupy about 250,000 square feet in the Domain 7 and 8 towers, the latter of which was finished in 2017.
Look for these new jobs to raise real estate values in all of North Central Austin all the way to Round Rock.
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There’s plenty of action downtown too. The Austin American Statesman has reported that none other than Google has leased an entire 35-story, 723,000-square-foot high-rise to be built at the last quadrant in the redevelopment of the former Green Water Treatment Plant on the southwest side of the Central Business District. Additionally Facebook has leased 250,000 square feet in the new Third + Shoal building and will be the tower’s anchor tenant.
Look for these new jobs to raise real estate values in all of the zip codes bordering downtown especially 78702 in East Austin and 78704 just South of the River.
Oh, and One More Thing…
Apparently New York isn’t giving as much love to Amazon HQ2 as was expected. Local Officials, Teamsters, labor unions and Alexandria Ocasio-Cortez (D-N.Y.), have come out against the proposed 25,000-person office. Pushback has been so severe that Amazon has reportedly been reconsidering it’s move there. If true, this could be very interesting for HQ2 short list cities like Austin. Hey, you never know.
Update: That one more thing just happened: Citing political opposition, Amazon has bailed from NYC HQ2. And a spokesman has announced the company’s plans to spread the 25,000 jobs among several cities including Austin. So there you go: More tech jobs coming our way!