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Get the latest insights on Central Texas' commercial real estate market straight from the source with our quarterly report.

We poured through nearly a dozen central Texas commercial real estate resources, so you don’t have to. Understanding the landscape of our local market is essential to staying ahead and making informed business decisions. That's why we've compiled all the recent statistics from Central Texas' commercial real estate markets into one comprehensive quarterly report. The CNB Central Texas Commercial Real Estate Quarterly report contains information tracking up-to-date trends on vacancy rates, sales prices, new construction projections, lease stats, and more that will give you a better view of both your current investments and where you could be looking for potential gains.

Key Takeaways

• Despite national economic uncertainty, strong growth is expected for the Austin economy in 2024.
• Commercial real estate outlooks are mixed with weakening demand and the sizeable amount of new construction slated for delivery being the main concerns.
• The US 10-Year Treasury and mortgage rates rise from year-end numbers due to stubborn inflation.

Summary of Economic Activity

The Eleventh District economy expanded modestly. While activity in services and housing grew, manufacturing output, retail sales, and loan demand declined slightly. Employment growth slowed as wages, input costs, and selling prices grew at a moderate pace. Demand for nonprofit services remained elevated. Overall, Texas firms noted an uptick in uncertainty, particularly among manufacturing firms. Weakening demand and domestic political uncertainty were top outlook concerns.

Projects Highlights

ROUND ROCK (Austin Business Journal) – One of the region's most-anticipated projects is back on track — and much bigger than previously planned. Eight years ago, Mark IV Capital, a Newport Beach, California-based commercial real estate firm, purchased a 66-acre plot near Interstate 35 and the State Highway 45 toll road for a project known as The District. But the plans subsequently stalled, mostly due to shifting market conditions stemming from the coronavirus pandemic. Since then, the size of the project has more than doubled. The District is planned as a $500 million investment that will result in 3 million square feet of development and a minimum of 5,000 jobs at full buildout in 2039.

AUSTIN (Austin Business Journal) — Months after a Dallas-based developer revealed its vision for the 31,000-acre former Alcoa aluminum plant near Rockdale, officials have announced plans to build a 1,200-megawatt natural gas power plant on the site that can support the equivalent of 800,000 homes. The ranch is mostly reclaimed coal-mining land and the industrial space was in the past slated for Bitcoin mining. The site stretches across Milam and Lee counties and is located about 15 miles east of Taylor, where Samsung Electronics Co. Ltd. is building a multibillion-dollar chip factory. Xebec Holdings LLC purchased the land in 2021 for $240 million from Alcoa Corp.  

HUTTO (Community Impact Newspaper) – Construction is underway on the main thoroughfare, currently dubbed Spine Rd., which will become a hub for big tech manufacturing developments off US 79. The road will serve as the main roadway to the 1,400-acre Megasite, where tech companies are planning to build data center campuses. Titan Development has already begun working on an industrial park to provide companies with more storage, distribution, and manufacturing space. The $16 million roadway off FM 3349 is being funded by bonds issued by the city. Construction is expected to be finished around August.

CEDAR PARK (Austin Business Journal) – WorldSprings is planning to develop an eight-acre project in the New Hope development that could have more than 40 pools, including hot springs, a Dead Sea floating pool, and cold plunges. The WorldSprings project would be in the portion of the site that is dedicated to entertainment, restaurants, hotels, and more. The $250 million project is expected to total at least 430,000 sf of industrial space and roughly 29,000 sf of retail space.

Also included in the report:

• Austin Market
• Local projects
• Notable leases, sales, and statistics for office, retail, industrial, and apartments
• Housing / Construction & Demographics
• Capital Markets
• And more

See the full report.

At CNB we work diligently to provide you with quality, timely information and support services throughout your commercial real estate journey. We hope our latest report has equipped you with what you need to make smart investments for your business now and into the future. For further questions or inquiries about the market outlook or advice on specific projects, please contact a lender to discuss your needs.