Plans for an exciting new development in Austin, a mid-rise located at Fifth and Walsh Streets, had begun to take shape early this year. While still in the early stages of development, from permitting to designing, this project spearheaded by Endeavor Real Estate Group LLC was making headway. However, as the market shifts, these plans seem less and less likely.

The five-story tower, planning to rise over 75 feet tall, would cover multiple lots in a half-block radius. This space in downtown Austin is expected to be 204,000 square feet. The ground floor would primarily house retail space, with four stories of underground parking. This Endeavor project was projected to cost roughly $61 million.

So, why has further development been halted?

The Austin Business Journal quoted Josh Lickteig, principal at Endeavor, on the recent halt for this downtown project: “We’re still in the permitting and design process, so we’ll kind of wait it out and see how that goes over the next 12 to 18 months and see if it’s worthwhile to pull the trigger on the building,” Lickteig said. “And if not, then we’ll pivot and do something different.”

Endeavor’s Impact On The City

A prominent commercial developer in our beautiful capital city, Endeavor has had a hand in some of our favorite Austin establishments, from The Domain in North Austin to South Austin’s Southpark Meadows shopping center. This developer is expanding to unknown territory in downtown Austin as well, with projects like the IBC Bank Plaza and a local office tower on Fifth Street under their belts already.

What Does This Mean For Austin?

Endeavor officials have maintained that they will keep an eye on the office and commercial markets while this project hangs in development but have mentioned pivoting to different things if the time comes. Lickteig has even gone on to say that they aren’t turning away from the prospect of residential, retail, and hospitality developments in the future, so keep your eyes peeled!

Discover more local business updates, commercial projects, and why Austin is the best place to live and invest by checking out my blog or contacting me at [email protected] with any questions!

2022 was a momentous year of change in the Texas markets of real estate and business. With a great migration of corporate America making its way to the Lone Star State, innovative developments throughout Austin, and new business opportunities around every corner, we can only expect even greater things to come.

While the great influx of company relocations was, in part, due to the pandemic and the rising popularity of work-from-home and hybrid workplaces. In 2022, things have stabilized and returned to a more consistent pattern. According to a recent study (YTexas) noted in Austin Business Journal’s analysis of the business boom, “at least 23 businesses moved to the state in 2022. That was down 63% from a record 62 that made the move in 2021.”

However, this “return to normalcy” trend doesn’t mean that Texas is losing its standing as one of the biggest business states. Texas has consistently been named the number one state for business, with 2022 being no different, as it received that ranking for the 18th year in a row! The CEO of YTexas, Ed Curtis, comments that “2021 was the biggest year for relocation in the history of Texas…It was all the buildup from Covid and then 2021 is when they made the move. It is still happening.”

2023 is lining up to be a record-setting year in Austin’s continued development and the overall growth of Texas. Businesses continue to flock to the state. Austin’s growing diversity in business and leisure, as well as its remarkable city-wide projects, mark it as a noteworthy place to start a business, relocate a company, and position corporate headquarters. 

Keep an eye out for more Tesla gigafactory news, updates on commercial projects, and Texas developments by following my blog or reaching out here!