We saw a great deal of change in 2006 across numerous fronts. A significant movement of professionals within the commercial real estate industry signaled a reshuffling common during strong market cycles.

Change in building ownership in Austin and beyond was constant. CB Richard Ellis' acquisition of Trammell Crow grabbed headlines. Austin felt a changing of the guard as well. Downtown Austin's Frost Bank office tower was purchased by Equity Office Properties in August for $354 a square foot, taking the record from Equity Offices' 2005 purchase of 300 West 6th Street.

Equity Office continued to gobble up properties in Austin's Northwest submarket, positioning the company as the largest office landlord in the city. Equity's overall market share of office space is approximately 14 percent—more than 30 percent of the Class A office space—and with both Blackstone Group and Cerebrus Capital Management making bids to purchase Chicago-based Equity, look for new landlords and more consolidation in the months ahead.

Investment sales remained high in the region as investors from around the
U.S. eyed Austin's potential. With the story out, thousands moved to Austin
to be a part of the city's growth and enjoy its increasingly renowned quality of life.

And regional economists are suggesting more is to come to River City with over 4 percent growth projected through 2011.

This year expect a sustained, hot real estate market that outpaces national averages and conditions.

Our 2007 is off to a bang. Wishing you a great New Year!

It's no secret that Central Texasand especially Austinis the place many people want to live, work and play, mostly because of its lakes, rolling hills, live music scene, restaurants, and a generally laid-back attitude. Inevitable growing pains, however, accompany the continued in-migration that, according to some experts, is expected to increase at an annual rate of 4.5 percent (in the Austin MSA) for the next five years.

One area that can be particularly problematic is with growing school districts. The demand for additional high-quality education centers is compounded by a limited supply of land and limited availability of funds to purchase such land in a market of steadily increasing prices.

In one sense, a school district is like an island, surrounded on all sides by a sea of competing districts also facing a limited availability of developable land. Unlike the legal limits of a city, which can grow through annexation of additional land, once a school district boundary line has been established, it cannot expand. A school district must account for existing and planned roadways, land owned by the city or county (which generally cannot be used for development), and planned and existing development, whether commercial or residential.

A school district can sometimes negotiate for a school site within a residential development; however, this occurrence is rare, because most developers do not designate enough land for an elementary school, let alone a middle or high school. After taking into account all the land supply available within its boundary, school districts are left with few practical options. ...

THE YEAR OF BIG DEALS

Central Texas got down to business during 2006, generating some impressive numbers.

AMERICAN-STATESMAN STAFF
Sunday, December 31, 2006

What do we do for an encore?

2006 was a smorgasbord of big deals for Central Texas. The year highlighted the region's diverse economy and let people know that even in the world of commerce, Austin could keep it weird. (Where else would the possible displacement of a small Mexican restaurant make national news and inspire debate about subsidies for"iconic" businesses?)

The city and its businesses built on some of Austin's most notable characteristics: semiconductor manufacturing, tourism, a booming downtown, retail sprawl. Trends newer to Austin emerged, such as the flood of private equity money in big corporate buyouts.

Whatever the type of deal, the region produced some eye-popping numbers.

"OLD SCHOOL" REAL ESTATE

Have you considered the value of buying property in your alma mater's town? Scores of UT and TSU grads have. It's well known that many people who come to the Greater Austin area for higher education wind up staying here permanently.

Austin and San Marcos, like other university communities, are attractive options for young professionals and increasingly popular with retirees as well.

Attributes that contribute to the popularity of college towns for real estate investment include:

- well-educated labor force

- typically low unemployment rate

- combination of urban amenities with small-town charm

- stable income base independent of business cycles

- strong retail market

- better cap rates

For more details, read John Buttarazzi's excellent piece in GlobeSt.com about the value of investing in your alma mater's town. READ