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2022 REAL ESTATE EDITION
COMMERCIAL DESTINATION
COMMERCIAL VARIATION Commercial property exists in various categories.
Industrial age With local growth increas- ing throughout multiple sec- tors, the industrial property footprint in Round Rock, P ugerville and Hutto rose by several hundred million square feet from 2021-22, according to Travis and Wil- liamson appraisal district data. Brinegar said large-scale operations such as the Ama- zon distribution center in P ugerville, which became operational in summer 2021, have helped play a major role in expediting the local com- mercial growth. Changes in the local retail market, such as increases in demand for online shop- ping and curbside services brought about by the COVID- 19 pandemic, have also con- tributed to the changes, said Bradley Dushkin, Round Rock Planning and Devel- opment Services assistant director. He added that the shifts in preference have come through in recent local permitting requests. There is increased interest in smaller industrial opera- tions, with more than 2 mil- lion square feet in the pipeline in Round Rock alone, he said. In Hutto, Economic Devel- opment Corp. Director Bob Farley said industrial facili- ties serve smaller companies with combined operations, and he has observed an increase in demand. Farley said Hutto presents a unique option when com- pared to other major metro- politan areas. Availability of land means companies can build to suit, rather than ret- ro tting or renovating exist- ing buildings. “It’s unlikely that they’ll nd exactly what they’re looking for in an existing space,” Farley said. “That doesn’t seem to be a surprise to anybody or slow down their desire.”
Entertainment: provides use such as a movie theater, music venue or other recreational activities Industrial: land that serves an industrial use may provide storage space for online commerce operations, manufacturing, fabrication among many other uses Retail/service: shopping centers, standalone stores and some restaurants fall into this category, depending on land designation O ce: these uses are typically given for o ce park developments and sometimes medical facilities
With minimal exceptions, area commercial property square footage has increased year over year in proportion to increase in demand.
Entertainment
O ce Retail/service
Industrial
ROUND ROCK
7M 6M 5M 3M 4M 1M 2M
SOURCE: WILLIAMSON CENTRAL APPRAISAL DISTRICT COMMUNITY IMPACT NEWSPAPER
Lankford said the area is also good for employers, which helps drive develop- ment via a cycle of growth that is occurring locally. “We’ve already seen a lot of announcements come out of smaller supporting businesses to Samsung,” Lankford said. “[They are] buying real estate or build- ing buildings to support that huge facility out there. Then you’ll start to see more resi- dential developments out in Taylor as well as in Hutto.” Representatives for Kerby Ventures, the developer of Lakeside Meadows in east- ern P ugerville, also pointed to the strategic advantages of being near SH 130 and SH 45 N. Project leaders James Kerby and John Guerra said the 400-acre Lakeside Mead- ows project is bringing new industrial, multi- and sin- gle-family housing and o ce space to a stretch of property running from Pecan Street to P ugerville Parkway. Amy Madison, P ugerville Community Development Corp. executive director, said the Austin Executive Airport, located south of Lakeside Meadows just out- side of the city’s extrater- ritorial jurisdiction, is also contributing to demand for local o ce space. “It provides us some really great opportunities for devel- opment of corporate head- quarters as well, because people who are doing a lot of business need to be in the air a lot, and particularly execu- tive ight,” Madison said.
others are in the pipeline working to come online in time to support the needs of the Samsung semiconductor fabrication facility. Valex, a manufacturer of distribution system compo- nents used in the semicon- ductor industry, will invest $12 million into the Round Rock tax base and bring 75 primary jobs to the area, and Applied Materials, a company that provides supplies and services to semiconductor manufacturers, is estimated to bring up to $2.4 billion in value to Hutto’s tax base and add about 525 jobs. While industrial land use is growing in popularity, according to data from both the Travis and Williamson central appraisal districts, o ce real estate has also seen large growth, both in square footage and value. Brentley Brinegar, owner of brokerage rm Brinegar Properties, said this is largely due to proximity to Austin and access to infrastructure. “It’s just very easy for folks to get around [in Central Texas],” Brinegar said. “I think that’s really caused Round Rock to be a really strong sec- ondary market to Austin.” An attractive area In addition to land avail- ability, Lankford agreed with Brinegar that SH 130 and SH 45 N, two arterial toll roads that intersect between P ugerville and Hutto just east of Round Rock, are enhancing the area’s attractiveness for business development.
0
2019
2020
2021
2022
Recent projects: The District, Summit I & II - large o ce spaces, Sabey Data Centers, Valex
160K 0 320K 480K 640K 800K
PFLUGERVILLE
1.2B 1.35B 1.5B 750M 900M 450M 150M 300M 600M 1.05B
0
Recent projects: Amazon warehouse, Lakeside Meadows, Pecan 130 business park 2021 2020 2022 2019
HUTTO
1.2M
200K 400K 1M 600K 800K
0
2019
2020
2021
2022
Recent projects: Hutto Innovation Industrial Park, The Co-op
SOURCE: TRAVIS CENTRAL APPRAISAL DISTRICT, WILLIAMSON CENTRAL APPRAISAL DISTRICT COMMUNITY IMPACT NEWSPAPER
area, including available land. “The land being at to our east kind of lends itself well to those large businesses like that,” he said. As one example, a $17 bil- lion, 1,200-acre Samsung plant set for construction in Taylor over the next sev- eral years is likely to attract
multiple auxiliary industries that should augment demand for commercial space, Lank- ford said. Some manufacturing com- panies have already made known their plans to move to the area, such as Valex in Round Rock and Applied Materials in Hutto, while
For more information, visit communityimpact.com.
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ROUND ROCK EDITION • JULY 2022
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