Tech and E-Commerce Remain Austin’s Dominant Industries
Austin remains one of the most attractive U.S. cities for growth. Specifically, the e-commerce and tech industries are very active here, says John Baird, senior vice president of Austin, Avison Young.
“We expect these industries to continue to expand over the coming 12 to 18 months,” he predicts. “This is where the majority of job growth has come from, with the Millennial workforce demographic creating a demand for rental units with amenities and luxury finishes. Additionally, as e-commerce increases, warehouse space is triggering more demand for industrial development and investment.”
This year, investor competition for industrial and multifamily assets has driven cap rates down to sub-4 percent with rapid transaction timelines. The office and retail sectors have lagged, however, there are recent upticks in activity.
“The expected glut of foreclosed and distressed hospitality/hotel properties has not materialized, as lenders are working with owners to stabilize them,” Baird says. “There are also indications that the travel and hospitality sectors will rebound in Q3 and Q4.”
Baird, Sullivan Johnston and Michael Kennedy are members of Avison Young’s Austin land, development and industrial team.
- ◦Economy