#austindevelopment

48 East Condominiums to be Zoned as a Hotel

48 East is the one of the latest and most unique condominium development projects to be approved in the Rainey Street District.  It’s unique because the Austin-based STG Design building will actually be zoned as a hotel, which will be powered by Airbnb.   

It’s confusing, but innovative. The concept is a 33-story, 239 unit building that combines the comfortable qualities of a short-term residential rental with the amenities and efficiency of a hotel. 

Once constructed, the building will offer units for sale in the price range of $300,000 for a 454 square feet studio to up to $1.2 million for a 1390 square feet, multiple bedroom condominium. Residents will have the opportunity to rent out their units via Airbnb for up to 180 days per year. 

Airbnb plans to charge 25% off the top and will provide “MasterHost” services at each property for items such as guest check-in, cleaning and linen service.  An added amenity will be local “Airbnb Experiences” for guests—events that involve hosts sharing their own takes on local culture and activities.

Condominiums can be purchased furnished or unfurnished and will feature additional features such as an extra lockable closet to store sensitive belongings and digital locks for keyless entry.    The building itself will include amenities available to all owners and guests, including co-working spaces, hotel-style food and beverage offerings, a spa-inspired fitness center, and a rooftop pool deck.

Property owners will be responsible for hotel occupancy taxes as well as property taxes and will not be allowed homestead exemptions on property taxes. 48 East is expected to open in 2021. 

What is your opinion of this condo/hotel/Airbnb concept?  Do you like the idea of a downtown condominium building built for short term rentals? Make your opinion known in the comments below!

Bouldin Creek Development to Add Needed Office Space to South Lamar

Austin’s next high end office development is coming to the Bouldin Creek Neighborhood at South Lamar and Oltorf.

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The Bouldin Creek Office Complex will house 165,000 square feet of office development and 2,500 square feet of retail shops, all fronting South Lamar. The location of this office complex, just 1.2 miles from downtown, will attract many potential tenants, including technology, marketing and financial services firms, as well as law and accounting firms.

The project will have an open-air feel and beautiful views of downtown, as it plans to house a rooftop deck and two acres of green space bordering Bouldin Creek.

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When can we expect to see shops and offices open at Bouldin Creek? This project is designed by Austin architect Michael Hsu and is expected to deliver by the summer of 2020.

Interested in homes in the Bouldin Creek Area? Homes sold for a average price of $630,000 in this area last year! Check out all available listings here:



Zoho to Move Its American HQ to Austin

The Silicon Valley continues to shift to the Silicon Hills of Austin, TX, as another global business software company, Zoho, plans to move its HQ to Austin by 2021.  

The company has purchased a 375-acre plot of land in southeast Austin near the airport (Texas State Highway 71 near Kellam Road), and is planning to build a 100,000 SF campus on this site that houses at least 500 employees. 

According to Zoho’s founder, Sridhar Vembu, Zoho is moving its headquarters to Austin because “Austin is how San Francisco used to be 30 years ago. It had the weirdness. It had all this stuff. The artists and the live music.”  And Vembu has pledged that Zoho will help keep Austin weird by doing things a little differently. 

Here Are 5 Ways That Zoho Will Help “Keep Austin Weird”

1. Zoho is privately owned and debt free.  Without the pressure from Wall Street or outside investors, Zoho doesn’t have to worry about making certain numbers and is free to exert more independence in creating a very unique company culture.

2. Zoho doesn’t merge or acquire products from any other company; instead, it develops all of its own software.

3.  Zoho is not going to seek incentives from local or state government or ask for tax abatements on the property. 

4. Zoho is moving to a piece of farmland on the outskirts of Austin rather than renting a space in downtown Austin because it’s a money saver. In fact, it actually costs less to buy the 375-acre plot of land out by the airport than it did to buy Zoho’s other 45-acre main campus in India!

 5.  Zoho plans to start an in-house education program called Zoho University that works closely with local schools to teach students skills and to educate its own employees to advance their positions within the company.  This program, Zoho University, is an alternative to a traditional college education and has been remarkably successful in India. At the school, Zoho pays students to learn how to create and use Zoho software. It hires many of its graduates. In fact, 15 percent of Zoho’s engineering workforce is made up of graduates from Zoho University.

"We create our own talent with Zoho University," said Vembu. And the company is able to acquire talent from a pool of people that end up with a clear understanding of the way things work, and, a respect for the culture that Zoho has created."  Zoho hopes to work closely with local high schools and Austin Community College to develop the American version of this program.

A strong value for independence, a unique culture, and a tech firm (and potential university!) landing out on a piece of farmland near the airport. Welcome to Austin, Zoho; it sounds like you’re a perfect fit here.

Zoho is 23 years old and has grown to 45 million users worldwide across 180 countries.  Bringing the HQ to southeast Austin area should increase property values in the area and create yet another tech “hub,” but this time in the south of Austin!  Are you looking to purchase a home in this area?  Do it now and watch your property values increase as Zoho continues to expand its Austin influence! 

US Army to Austin with $37 Billion to Give Out

You may have heard the Apple or Amazon buzz, but there is one major economic development in Austin you may not have gotten the news about. Last summer, the US Army said, “We Want You!” to Austin, Texas, as they made a decision to locate their base for the country’s new high-tech, four-star Army Futures Command here.

 The new Command Center will be located in The University of Texas System’s building in downtown Austin and will not only be looking for partners in innovation from the University of Texas’ Cockrell School of Engineering,  but from many private sectors as well. In short, the Futures Command is all about developing newer, faster, stronger and better technology for the Army’s future. Many Army defense contracts of old can take decades to work through large corporate systems, and the Army wants to speed up that process with Austin’s young, agile, ambitious and incredibly talented high-tech entrepreneurs.  

 It’s the perfect symbiotic relationship, as the 500 person Command Center will have access to researchers and academia on UT’s campus as well as an initial relationship with Capital Factory, a co-working space in Austin that houses over 1000 entrepreneurial & start-up tech firms. Federal research grants, development dollars, and high-tech contracts are sure to follow, with an initial modernization budget of as much as $37 billion already awarded to the Army Futures Command (www.defenseone.com).

 The Army’s decision to locate in Austin will continue drawing innovative tech companies to Austin as they compete for Army contracts and help the Army implement innovations and modernize their processes.  So, when you consider the major tech leaders of the future in Austin, TX, don’t forget to add the US Army to your list!

Austin's Changing Skyline--Downtown Development in ATX

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Austin continues to boom. Business Insider says Austin had the second highest rate of job growth among the 40 largest metro areas in America, with employment rising 3.7 percent between February 2017 and February 2018. The most visible representation of our rapid economic development is our ever changing downtown skyline. Just think about this: of the 8 tallest buildings in downtown Austin today, not a single one of them existed 10 years ago!

According to the Austin Downtown Alliance, downtown will grow by 50 percent if it only completes projects currently under construction and those proposed for redevelopment. However, downtown Austin has the potential to double in size if it reaches its full build out potential in the next 5 years.

Below is just a glimpse of the developments that are shaping or will continue to shape the Austin skyline…

  1. 6th X Guadalupe St—when completed this will be the tallest building in Austin. 837 feet high & 66 stories of apartments and offices stacked atop each other. An acre of parks in the sky are in the plans for this skyscraper.

  2. The Independent— luxury high rise condominiums and currently Austin's tallest building, taking the title away from The Austonian, which laid claim to the tallest building in Austin for about eight years.

  3. The Republic at 401 W Fourth St, just south of Republic Square Park, will have 711,401 square feet of office and 21,463 square feet of retail.

  4. 70 Rainey—a 34-story skyscraper with 164 condos that tower over Rainey Street.

  5. 48 East Ave—a 33-story, 215 condo tower also located in the Rainey Street Historic District.

  6. Waller Park Place—more than 3 million square feet of residential, commercial and office space at Red River and East Cesar Chavez streets. This will be a big property—roughly the size of six Frost Bank Towers!

  7. Block 71—Indeed Inc. will lease the top 10 floors of this office tower under construction at the intersection of Sixth Street and Colorado Avenue.

  8. 5th & West—154 luxury condos that stand 37-stories tall.

  9. The Austin Proper Hotel—a 32-story luxury hotel and residential combo.

  10. Third + Shoal — an office tower near The Independent, the new library and Google’s tower — with tenants such as Facebook and Bank of America.

  11. 300 Colorado Office— at Colorado and Third Street will be redeveloped into a 32-story office tower with about 390,000 square feet of space.  Fourteen of the building’s 32 floors will be dedicated to parking. 

  12. ZaZa Tower—This 24-story tower on West Fourth Street near Lavaca Street will offer more than 200 apartments and more than 150 rooms at Hotel ZaZa. Retail stores will line the bottom of the building.

  13. Genesis Real Estate plans to build a 50-story apartment tower in the Rainey Street area on the site of the vacant Villas on Town Lake condos.

  14. Block 185— Google has leased the entire building. set to start construction in 2019. This building will take on a sail-like shape due to its proximity to Lady Bird Lake and Shoal Creek.

  15. 93 Red River—347 Units; 40 stories of Multifamily, Office & Retail including five levels of underground parking and seven levels of above ground parking.

  16. 405 Colorado—a 197,056 SF building with 12 stories of parking with 12 levels of office space on top.

How do you feel about Austin’s dynamic skyline and economic boom? Like it our not, our city is currently one of the most rapidly changing metro areas in the country, so we need to be prepared to flex and change with it, especially in the real estate sector.