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Old 01-07-2023, 12:08 PM
 
Location: Houston/Austin, TX
9,891 posts, read 6,595,852 times
Reputation: 6405

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Quote:
Originally Posted by LocalPlanner View Post
Your #2 item just found out that its anchor tenant, Meta, has decided to not occupy its space (almost 600K sq.ft.) and will sublease it. Ouch. At least the company will still pay rent.

Perhaps the tech slowdown is finally hitting Austin, after having affected the SFBA for the last 6 months or more? That will have major ramifications for Austin real estate (downtown and elsewhere).
Going back to this post, the situation in SFBA seems to be getting worse then I thought. It’s layoff report after report. Not sure how Austin will fair with layoffs but most of the unfinished projects in Austin are probably lowering capacity now.
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Old 01-09-2023, 09:09 AM
 
Location: Houston
5,614 posts, read 4,941,546 times
Reputation: 4553
Quote:
Originally Posted by ParaguaneroSwag View Post
Going back to this post, the situation in SFBA seems to be getting worse then I thought. It’s layoff report after report. Not sure how Austin will fair with layoffs but most of the unfinished projects in Austin are probably lowering capacity now.
Yeah SFBA is getting hammered. Some folks even say the SF city office market may be almost as bad as Houston, which is really saying something and a dramatic massive turnaround for that market.
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Old 01-09-2023, 12:56 PM
 
4,344 posts, read 2,810,471 times
Reputation: 5273
Quote:
Originally Posted by ParaguaneroSwag View Post
Going back to this post, the situation in SFBA seems to be getting worse then I thought. It’s layoff report after report. Not sure how Austin will fair with layoffs but most of the unfinished projects in Austin are probably lowering capacity now.
The good thing with Austin is the buildings are mixed use and there was such a bottleneck for housing. I don't think they will be hurt as bad as Houston's prior busts because Houston's were so single purpose focused.

I think tapping the breaks is sometimes a good thing. It helps the city catch up and diversify. Austin was going too tall too far so hopefully they get to slow down and build some mid range infill and sure up transit.
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Old 01-09-2023, 04:04 PM
 
11,801 posts, read 8,012,998 times
Reputation: 9951
Quote:
Originally Posted by ParaguaneroSwag View Post
Going back to this post, the situation in SFBA seems to be getting worse then I thought. It’s layoff report after report. Not sure how Austin will fair with layoffs but most of the unfinished projects in Austin are probably lowering capacity now.
Tech layoffs are a thing but for the most part Austin still seems to be doing well. I am receiving potential job opportunities for Austin and Dallas area pretty much daily. I had an offer for both AT&T in S.Austin and also one for Texas Dept of Motor Vehicles for Network Eng, Systems Admin, & Automation related roles. That isnt to say layoffs arent happening though. One thing I do notice though is there is a huge push to bring people back onsite, some roles not even offering Hybrid anymore.
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Old 01-09-2023, 04:10 PM
 
Location: Houston
5,614 posts, read 4,941,546 times
Reputation: 4553
Quote:
Originally Posted by atadytic19 View Post
The good thing with Austin is the buildings are mixed use and there was such a bottleneck for housing. I don't think they will be hurt as bad as Houston's prior busts because Houston's were so single purpose focused.

I think tapping the breaks is sometimes a good thing. It helps the city catch up and diversify. Austin was going too tall too far so hopefully they get to slow down and build some mid range infill and sure up transit.
It's true that in Downtown Austin, the new stuff is as much or more driven by residential demand as by office.

Did you see that a tiny lot on Rainey with an old small house was just listed for $10 million?
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Old 01-09-2023, 07:56 PM
 
Location: Houston/Austin, TX
9,891 posts, read 6,595,852 times
Reputation: 6405
Quote:
Originally Posted by Need4Camaro View Post
Tech layoffs are a thing but for the most part Austin still seems to be doing well. I am receiving potential job opportunities for Austin and Dallas area pretty much daily. I had an offer for both AT&T in S.Austin and also one for Texas Dept of Motor Vehicles for Network Eng, Systems Admin, & Automation related roles. That isnt to say layoffs arent happening though. One thing I do notice though is there is a huge push to bring people back onsite, some roles not even offering Hybrid anymore.
Basically reiterates. SFBA is getting the total crash. Austin will have their round of layoffs but the bigger loss will be from future projects lowering capacity.
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Old 01-10-2023, 09:49 AM
 
Location: Houston
5,614 posts, read 4,941,546 times
Reputation: 4553
Quote:
Originally Posted by ParaguaneroSwag View Post
Basically reiterates. SFBA is getting the total crash. Austin will have their round of layoffs but the bigger loss will be from future projects lowering capacity.
Agreed. A lot of the office leasing / construction in Austin was for tech companies that expected to hire over the next couple years; now, those expectations are (probably severely) attenuated.
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Old 01-16-2023, 10:21 AM
 
1,534 posts, read 2,772,002 times
Reputation: 3603
Quote:
Originally Posted by LocalPlanner View Post
Agreed. A lot of the office leasing / construction in Austin was for tech companies that expected to hire over the next couple years; now, those expectations are (probably severely) attenuated.
Since high tech manufacturing is continuing to boom in Austin, Bloomberg thinks the Meta lease cancelation will barely be a blip in Austin's high-rise construction . . .

https://www.bloomberg.com/news/featu...pers-is-coming

We shall see . . .
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Old 01-16-2023, 11:15 AM
 
4,344 posts, read 2,810,471 times
Reputation: 5273
Quote:
Originally Posted by homeinatx View Post
Since high tech manufacturing is continuing to boom in Austin, Bloomberg thinks the Meta lease cancelation will barely be a blip in Austin's high-rise construction . . .

https://www.bloomberg.com/news/featu...pers-is-coming

We shall see . . .
I hope so.
It's why I think this isn't all bad for Austin.
It gives the city a chance to catch up and diversity the economy.
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Old 01-16-2023, 12:57 PM
 
Location: Houston
5,614 posts, read 4,941,546 times
Reputation: 4553
Quote:
Originally Posted by homeinatx View Post
Since high tech manufacturing is continuing to boom in Austin, Bloomberg thinks the Meta lease cancelation will barely be a blip in Austin's high-rise construction . . .

https://www.bloomberg.com/news/featu...pers-is-coming

We shall see . . .
Don't necessarily equate large-scale manufacturing operations with large-scale office leasing. Sure, companies like Samsung need some office space that is associated with their overall manufacturing operations, but filling hundreds of thousands of square feet of high-end office space depends on having a large-scale white collar workforce that is doing other things. This latter activity is what tech companies have been cutting back.
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