Central Austin Edition | July 2020

CENTRAL AUSTIN EDITION

VOLUME 12, ISSUE 9  JULY 30AUGUST 26, 2020

ONLINE AT

Tax deal drives Tesla factory to Travis County

When internet services behemoth GoDaddy announced 331 layos and the closure of its Austin oces June 24 amid the coronavirus pandemic, the move signaled some of the challenges COVID-19 posed across industries, including oce real estate. GoDaddy had just signed a 15-year lease in December at a new building in East Austin. Now, it is the company’s responsibility to nd a sublet. The oce real estate market leading up to March, when the virus began to spread, was strong. Currently, 7.4 million square feet of oce space are under construction through- out the city, with expected completion by the end of 2022— this total does not include the 3 million-square-foot Apple campus in Northwest Austin—according to the research arm of Aquila, a local commercial real estate rm. With major projects such as the Indeed and Google tow- ers, the Parsley Energy Building and the skyscraper at Sixth and Guadalupe streets, downtown Austin, also CONTINUED ON 22 Hobbled ocemarket poised for recovery BY CHRISTOPHER NEELY 2020 EDI T ION REAL ESTATE

DOWNTOWN

KEY End of March square feet of oce space up for sublease End of June square feet of oce space up for sublease DOWNTURN Since March, more downtown Austin businesses have looked to ooad their oce space due to budget issues or more employees working from home. However, real estate experts predict a bounce back in the oce market.

BY OLIVIA ALDRIDGE

Electric automaker Tesla will build its next manufacturing plant in Tra- vis County in an area just east of the city of Austin, bringing with it at least 5,000 new jobs. Tesla CEO Elon Musk announced the decision in a July 22 earnings call following months of deliberations between the company, Travis County and Del Valle ISD over economic incen- tives to bring the company to Texas. Tesla anticipates construction to TESLA GETS GIGA-SIZED INCENTIVES CONTINUED ON 24

400,000 200,000 600,000 800,000 1,000,000 1,200,000

+101%

+37%

+31%

+79%

0

Downtown

NORTHWEST SouthWEST

East

Sectors of Austin

Downtown Austin, also known as the Central Business District, saw more oce subleases than any other sector of the city.

AUSTIN'S CENTRAL BUSINESS DISTRICT

35

SOURCE: AQUILACOMMUNITY IMPACT NEWSPAPER

5,000 new jobs

ManyAustinites still hurting nancially rely on unemployment, rent protections to get by

“I got a good [unemployment] benet, but it’s nowhere near enough to paymy bills. … I have one more payment with the $600 a week; after that it won’t be enough.” - Lauren Brown, bartender at One2One Bar

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BY JACK FLAGLER

and Washington, D.C. discussed extending government aid pack- ages for unemployment and rent assistance. More than 90,000 unemployed Austin-area resi- dents are relying on that help as COVID-19’s economic challenges have not let up.

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After spikes in COVID-19 case counts and hospitalizations through June, Austin Public Health data showed what o- cials called a “glimmer of hope,” leveling o in July. As the city continues grappling with the virus, leaders in Austin

HAROLD GREEN ROAD

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Tesla will develop a 2,100-acre site in Travis County for its next “gigafactory.”

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COURTESY LAUREN BROWN

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