Austin has had reputation as a secondary tech city, especially for start-up. The 800 pound gorilla has been Dell but recent developments make Austin a top destination for skilled talent. The year is already off to a hot start as we’ve seen some big developments from some of the world’s biggest tech companies. With that we expect some great developments in real estate values, as these high paid employees will need housing.
Downtown – Tech Jobs
You may have noticed the big pit downtown. However, the good news is that it’s going to be built into a high-rise. In addition, the better news is that tech giant Google is moving in and will lease the entire 723,000 square foot building. This is right next door to the space they already occupy. While it’s not completed yet, it’s expected to be finished within 3 years.
North Austin
North Austin initially looks to benefit the most. Historically this area has already been home to tech companies (due to Dell) but is still expanding with huge opportunities. The major news this year has been Apple’s new $1B campus. This campus is poised to house as many as 15,000 new jobs over the next 5 years.
Building on the North Austin love, The Domain has also been subject to large job additions. Facebook is scheduled to lease an entire 320,000 square foot building (Domain 12) which is still under construction. Word is that this is expected to be completed by the end of this year.
After some disappointment of neither Austin or Dallas landing tech giant Amazon’s infamous HQ2, reports say that their location in New York City has been cancelled. Simultaneously, it was announced that Amazon will be leasing 145,000 square feet on four floors in The Domain where they already lease 250,000 square. Similarly, Amazon has also announced it will move additional jobs to Austin with the NYC plans falling apart. This has The Domain poised to become Austin’s second downtown.
In conclusion, these tech jobs will have a huge economic impact on the city, and especially the surrounding neighborhoods. Reach out to Loan Ranger Capital for any loan requests on investment property!