Austin is springing forward into the season with news of two mixed-use development projects coming to the area. Keep your eyes peeled and check out some details of these exciting projects below.

CSW Far West Development

While filings are still in the preliminary stages, Far West Boulevard in Austin is standing to gain hundreds of new apartments and plenty of upcoming retail and restaurant space with Central Southwest Texas Development LLC’s latest project. This development is set to be developed at 3525 Far West Blvd in Austin, featuring several five-story buildings and a six-story garage across 3.9 acres of land.

Currently, that lot is occupied by a Frost Bank drive-thru and parking lot. The land was purchased by CSW in December 2021 and was appraised at nearly $3.4 million. According to a recent filing, the current development project is projected to cost CSW $50 million.

With no available site plan, the layout of this development remains unclear. However, CSW has announced plans to qualify for the city’s vertical mixed-use density bonus program. This fantastic program allows Austin developers to build higher than typical in exchange for creating affordable housing. To meet these goals, CSW will reserve 10% of residential space for residents making 80% of the median family income level!

AJ Capital Tower & Hotel

Just south of the University of Texas campus, plans for an 18-story project are beginning to take shape. The Nashville-based developers, AJ Capital Partners, have announced plans to transform a half-block radius surrounding Guadalupe and 18th streets. Their recent site plan filed with the city shows the demolishment of the site’s current occupant, an office building, with plans to develop an astonishing 18-story tower.

While the specifics of this project remain secretive within AJ Capital’s walls, we can look at the developer’s exciting portfolio to further speculate what is to come. The current operatives of the boutique hotel chain Graduate Hotels, AJ Capital has a current expansion plan in Dallas that is already under construction. This project would be the company’s first development in Austin and is one for the books!

Learn more about the beautiful city of Austin by checking out my blog or contacting me at tmcneil@kw.com with any questions!

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 tmcneil@kw.com with any questions!

Some exciting developments are on the horizon for big names in Austin. Between new construction at Apple’s campus in Northwest Austin, several expansions for the Tesla Gigafactory, and a mixed-use development rising up east of the Austin-Bergstrom International Airport, Austin commercial real estate is skyrocketing in 2023.

Apple NW Austin Campus Construction

Apple will be beginning construction on several huge developments at its Northwest Austin campus. In early January 2023, Apple filed plans with the Texas Department of Licensing and Regulation to construct a four-story and five-story building, each costing roughly $120 million.

Tesla Gigafactory Expansions

Big things are coming to the Tesla gigafactory in east Austin this year. In 2023 alone, the company has filed plans for future construction at the gigafactory, estimated to be more than $775 million in cost. The last filing (the fifth in 2023 so far) appeared on January 10th for a project called Die Shop. This development aims to construct a new building on an immense 107,468 sq. ft. lot, costing roughly $59 million. With the addition of this new Die Shop project, Tesla’s total footprint of projects will reach 1.5 million square feet.

Colorado Bend Industrial Mixed-Use Development

A massive mixed-use development is on the horizon for Southeast Austin. According to a recent filing, the first project for this development will be Colorado Bend Industrial, just off state highways 71 and 130. The one-story Colorado Bend Industrial building will span 453,658 square feet and cost $44 million. Construction is set to begin on May 15th, 2023, and is expected to be finalized one year later, in 2024. 

This is just the tip of the iceberg when it comes to commercial construction in Austin. 2023 is poised to be an eventful year for our favorite city. Stay tuned for future Austin developments by following my blog or contacting me directly at tmcneil@kw.com.

September has been an eventful month – with a long-awaited change in season, the beginnings of countless thrilling fall events, and the highly-anticipated news of the soon-to-be tallest tower in Texas, Waterline Tower. While construction began on this project in mid-June of this year, its completion is not anticipated for three to four more years. 

Upon completion, the 74-story skyscraper will surpass the state’s tallest building record of 1,002 feet, currently held by the JPMorgan Chase Tower in Houston. The Waterline Tower will be co-developed by two companies operating out of Texas, Lincoln Property Co. and Kairoi Residential LLC.

The Space Inside The Waterline

While a large portion of the retail space on the first two floors remains unclaimed due to the longer timeline of this project, the following 13 floors have already been booked with 1 Hotel Austin, a luxury hotel featuring a ballroom and rooftop pool.

The next 27 stories will contain roughly 700,000 square feet of office space. Spectacularly, this office space will only take up one-third of Waterline’s entire height. To further entice the Austin workforce, the office space will be created with large corporations and smaller technology companies alike in mind. 

Lincoln Property Co.’s Seth Johnston remarked “In Austin, Texas, you don’t go only corporate or only tech…Big corporations and tech companies intermingle every day, so what we tried to design is a building that can suit both and be as flexible as possible.”

Residing above the impressive office space will be 33 floors consisting of 352 luxury apartments, with many details still to be determined.

What This Means For Austin

Downtown Austin has been booming, drawing attention from across the country. Now, with not only a new record-setting skyscraper but with additional office, retail, and residential space, the Waterline Tower will be an incredible contribution to the city. 

Katie Keenan, CEO of Blackstone Mortgage Trust, who provided the construction loan for this property, commented on the mission of the Waterline Tower: “We continue to see strong demand for new, best-in-class residential, office and hospitality assets in high growth markets like Austin and are excited to support this trophy, mixed use development that will make a meaningful contribution to the community as well as the Austin skyline.”

As we learn more about this fascinating development, feel free to reach out. I always welcome discussions about this incredible community and what the future holds for us. 

One of Austin’s most prominent tech giants is making a move. That’s right! IBM has recently filed for new office space in Austin. With two offices already situated near The Domain, often fondly referred to as Austin’s second downtown, IBM seems to be on the move to expand. First arriving in our lovely capital over fifty years ago, the renowned company quickly established its presence in Austin and has stayed ever since.

IBM’s Vice President of Enterprise Operations and Services, Joanne Wright, reported that IBM would consolidate this upcoming space with its two already-established offices into a cohesive hub of operations in the city. “We can see an opportunity to bring our systems team, our software team, our marketing teams — all teams that support IBM in the Austin city limits — together in one single team.”

Developments In The Domain

With The Domain poised as the nesting ground of even more IBM developments, residents can expect a boom in the surrounding areas. One of IBM’s landlords near The Domain, Brandywine Realty Trust, has extensive plans for the site. The Broadmoor office campus – which currently houses IBM – is one of many buildings owned by Brandywine, and they have big plans for the area. Refreshed buildings are on the horizon for Broadmoor, along with an expansion of Brandywine’s well-known Uptown ATX. 

Stonelake Capital Partners, IBM’s other landlord in the Austin area, has also been at the core of various developments in The Domain. With plans to upscale the area, Stonelake has been making continuous improvements. One of their recent developments, A Domain office tower, has gone on to attract yet another tech titan, Paypal, to the area.

Looking Forward

Because of these upcoming developments, competition for office space in The Domain has been high. Many companies look to Austin’s second downtown as a prime location to place their roots, further establishing The Domain as a hub of technology and innovation. 

These improvements and developments to the area can mean great things for the surrounding neighborhoods, attracting new businesses and creating a thriving environment. As always, don’t hesitate to reach out with any questions or curiosities about upcoming developments coming to the area.