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Kim_Gatley
Kim Gatley
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enior Vice President & Director of Research at REOC Austin

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Discount European grocery chain eyes Austin area

Discount German grocery chains Aldi Inc. and Lidl Stiftung & Co. KG both have stores planned in the Austin area as they seek to ramp up their share of the U.S. market.

Aldi, which announced June 12 plans to invest $3.4 billion to expand to 2,500 stores nationwide over the next five years, is building a store at 1415 FM 685 in Pflugerville. …Read Entire Post

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Industrial Space on the way at Southpark Commerce Center

Southeast Austin’s Southpark Commerce Center is set to receive more than 350,000 sf of speculative space from Ridge, Transwestern’s industrial development arm.

The project, recently started on a 24.17-acre site near I-35 and SH 71, will be composed of three Class A buildings—a service center and two warehouses—intended for use by multiple tenants.  …Read Entire Post

With Golfsmith’s demise, Golf Galaxy steps into void

golfsmith_logoAustin-based retailer Golfsmith is history, the victim of bankruptcy, but a number of its former stores have been scooped up by a competitor, Golf Galaxy.

That includes one of Golfsmith’s two Austin locations, at 10001 Research Blvd. in the Arboretum area. Following a remodel and sign swap-outs, it debuted this month, becoming the first Golf Galaxy store in Central Texas.

The other Austin Golfsmith store, at 11000 N. Interstate 35 in North Austin, wasn’t one of the stores acquired by Golf Galaxy. …Read Entire Post

New $45 Million Home for Travis County Prosecutors

Named after the longstanding district attorney, the Ronald Earle Building is under construction at 416 W. 11th St. Austin DA building construction 2017

The seven-story, 125,007-sf structure, which includes underground parking, is scheduled to be finished in spring 2018. The total cost of the project is $45 million. The building will primarily serve county prosecutors. …Read Entire Post

Whole Foods’ new 365 concept set to make Central Texas debut

365_WF_Logo_COLORThe 30,000-square-foot store – the first 365 location in Texas and the first 365 store anywhere to be built from the ground up – is set to open its doors at 9 a.m. Wednesday. It’s in The Parke, a new shopping center at 5001 183A toll road. …Read Entire Post

Bebe plans to shutter stores, including in Austin area

bebe_logoBebe Stores Inc. is planning to shutter its locations and become an online-centric retailer, according to Bloomberg.

Citing unnamed sources, the report says the Brisbane, California-based women’s retailer is trying to close the stores without filing for bankruptcy. Bloomberg’s sources say, however, that a Chapter 11 filing will be necessary if landlords aren’t willing to negotiate. …Read Entire Post

St. David's selects general contractor for $58M hospital expansion

St. David’s HealthCare has upped the price tag for the expansion of its South Austin hospital and selected a general contractor for the job.

It now expects the major renovations at St. David’s South Austin Medical Center to cost $58 million, the Austin American-Statesman reports. DPR Construction Inc. will oversee the project, with work expected to start in mid-2017 and finish in early 2019. …Read Entire Post

Yeti Coolers unveils first store

YetiYeti Coolers LLC is ready to pull the veil off its first retail store at 220 S. Congress Ave. — a major step for the company to directly reach consumers, and a promising development for a long-vacant property at the gateway between downtown and trendy shopping to the south. …Read Entire Post

REOC Releases 4Q 2016 Office Market Report

The Austin office market finished strong in the final quarter of the year with plenty of momentum heading into the New Year. New leases and expansions generated 567,035 square feet of positive net absorption in the fourth quarter.

No new office space was delivered in the fourth quarter keeping the year-end total at nearly 779,000 square feet. As a result, new leases and expansions tightened the citywide vacancy rate from 8.7% last quarter to 8.0% at the end of the fourth quarter.

Strong demand has propelled rental rates to an all-time high. At the close of the fourth quarter, the citywide average rental rate reached $34.83 per square foot on an annual basis which marks a healthy 3.5% annual increase over the same period last year. At the top of the market, Class A buildings in the CBD command an average quoted rental rate of nearly $53 per square foot. (To adjust for buildings which quote rents on a triple net basis, operating expense figures have been added into the equation to arrive at an average equivalent full-service rate.) …Read Entire Post

REOC Releases 4Q 2016 Industrial Market Report

The Austin industrial market ended 2016 on a strong note with marked improvement in the citywide vacancy rate tightening to 5.2%. The current citywide vacancy rate is down compared to the 6.1% recorded in the third quarter and 6.9% in the previous year.

At the close the fourth quarter only 193,600 square feet of new space was delivered which included Met Center II 13 (57,600 sf) and Expo Business Park 13 located at 6301 East Stassney. Both are located on the Southeast sector.

While new projects continue to reach the planning and construction stages, it’s estimated that there is already over 1.9 million square feet of potential industrial space coming through the development pipeline. In a market with such high demand for new space, the vacancy rate is expected to stay somewhat consistent going forward leaving much of the pressure on developers to provide the supply needed. …Read Entire Post