Austin ranks among the best commercial real estate markets


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Unless you’ve lived away from the grid for the past couple of years, you are well aware that Austin ranks among the hottest residential real estate markets in the United States. commercial real estate markets.

In a recently released report, the National Association of Realtors identifies Austin as one of the top 10 commercial real estate markets in the United States. San Antonio is the only other Texas market to make the unranked list.

Austin’s commercial real estate sector has benefited from an influx of companies, especially in the tech industry, leaving California. Some of the companies moving include Cangshan Cutlery, F45 Training, Green Dot and Markaaz.

Factors in favor of Austin described in the report include:

  • The office occupancy rate has increased, rather than decreased, over the past 12 months. Across the country, the COVID-19 pandemic has hit the office sector, with millions of Americans telecommuting rather than commuting to a workplace.
  • In the multi-family segment (which is part of the commercial real estate industry), Austin enjoys one of the strongest levels of construction activity in the country.
  • Advertised rents in multi-family properties increased 21.2% year-on-year.

“Even though the economy is enjoying a steady recovery, the only sector lagging behind is the office market,” Lawrence Yun, chief economist at the National Association of Realtors, said in a press release. “The flexibility of working from home appears to be the defining change in the new post-pandemic economy. “

“Despite the global challenges, however, some local markets are going against the trend with more office occupancy and rising rents. The combination of high internal migration and a relatively low cost of doing business drives these growing markets, ”Yun adds.

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