Austin Commercial Real Estate Boom

Commercial real estate in Austin, Texas is on the rebound.  After seeing a surge during the tech boom of the late 90s, real estate in Austin plunged as many startups went defunct.  But 2006 is proving to be a banner year for commercial real estate developers and property managers in Austin.

It starts at the top with the large corporations.  AMD is planning to move into a new campus in Southwest Austin.  Although they won't be absorbing any existing space, this is a sign of their long term commitment to Austin.  Major employers like this generate lots of feeder businesses that need space.

Perhaps the hottest downtown commercial real estate in Austin right now is the Frost Bank Tower.  This skyscraper is a new and unique fixture on the Austin skyline.  It's a dark portrusion of glass with a funky design at the top.  After opening its doors a few years ago it has quickly become home to many law firms and investment groups, including UTIMCO.

Rates for class A space are starting to increase along with occupancy rates.  Unless more commercial space is made available you can expect rates to continue an upward climb.  Fortunately for companies looking for space, commercial real estate developers are proposing new projects every day.