Austin and San Antonio See Activity Above Historical Averages In Data Center Development

In H1 2018 demand for data centers remain stable in the Austin and San Antonio markets, with much of the market demand coming from large, hyperscale users offering a mixture of internet cloud exchanges, according to CBRE’s latest U.S. Data Center Trends Report.

The markets have seen activity above historical averages in data center development due to large expansions and an increase in smaller wholesale deployments.

Austin and San Antonio have added 9.0 MW of inventory since H1 2017, with 8.0 MW under construction to meet demand. Despite the new supply, the market’s vacancy rate dropped 130 basis points year-over-year to 8.1 percent.  The San Antonio market is largely dependent upon large cloud requirements, which have driven more than 90 percent of the overall leasing activity in the market in recent years. The Austin market is driven by state entities, local businesses and several large technology companies.

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Developments in 2017 Land Markets

Rebounding activity in the oil patch reinvigorated the statewide land market. Posting a surprisingly strong year end result at $2,644 per acre, a 4.46 percent expansion from 2016 prices and the strongest growth since 2014. The 6,272 reported sales topped 2016 totals by 577 sales.

Driven in part by remarkable developments in energy-dominated areas, overall Texas statewide results continued to post price increases. However, market conditions in some regions varied where weak results pointed to market adjustments in three areas: the Panhandle and South Plains, West Texas, and Austin-Waco-Hill Country where prices ebbed for various reasons

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Three Ways Commercial Real Estate Lenders Are Going To Change The Way We Work

When I first started working with large multifamily lenders, I was surprised how few of them made loans for apartments under 50 units. Since larger transaction volumes support larger fees, it makes sense that nearly all of the major real estate lenders cater to the top end of the market.

In fact, based on the level of customized service they provide and the teams they need to provide this level of service, some have told us it’s simply impossible to profitably underwrite loans for small properties — the fees just aren’t large enough.

This segmentation among lenders has impacted the way technology has developed to serve the multifamily industry. Over the past 20 years, a strong data ecosystem has evolved around the 50-plus-unit market.

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Why retailers such as INDOCHINO & Sobeys are betting big on hyperlocal

Many retailers are recognizing the importance of a hyperlocal presence. Whether it’s by adapting the product offering or the layout, retailers of all sizes are taking notice of the benefits of tailoring physical stores, products, and marketing to individual locations and communities.

At INDOCHINO, a growing men’s clothing retailer with 31 showrooms across North America, different stores have unique features. Its Nashville store features guitars to honor and recognize that city’s close connection to music. Motorcycles were prominent in the launch of the company’s Texas presence and the famed major league baseball Yankees are prominent at their New York location.

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Rising rent pushes local businesses from South Congress strip

South Congress Massage relocated to 1512 1/2 S. Congress Ave., Austin, from its previous location at 1210 S. Congress Ave., Austin, on Aug. 1 after the business owner says her rent was tripled.

The relocation is the second on the strip that includes 1200-1210 S. Congress Ave. in as many months.

The Turquoise Door II, which opened in 1989 and sold American Indian jewelry and Latin American folk art, closed its storefront at 1208 S. Congress Ave. in July, when its lease expired. The owner said he would have preferred to remain in the location but high rent and unfavorable terms made it untenable.

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Avison Young launches life sciences specialty practice group

Mark E. Rose, Chair and CEO of Avison Young, the world’s fastest-growing commercial real estate services firm, today announced the formation of a new life sciences specialty practice group.

The group, which will assist life sciences companies with their real estate needs, is led by Jerry Keeney, Avison Young Principal and Managing Director of the firm’s San Diego office; Principal Brian Cooper, who is also based in San DiegoNew Jersey-based Principal Tom Giannone; and Steve Bleiweiss, a Senior Vice-President in the firm’s Metropark, NJ office.

The group will span 10 regional markets in the U.S., CanadaMexico and Europe and comprise 17 Avison Young leasing professionals.

“The new practice group’s members understand the pharmaceutical product life cycle as well as the technical complexities that can create budgetary and scheduling risk associated with life sciences firms’ real estate requirements,” comments Rose.

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