San Marcos - Buda - Kyle Edition | July 2022

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KEEPING UP WITH DEMAND Over the past few years, the amount general it maintained a high rate of occupancy. Data is updated as of June 29. PROPERTY TYPES Each property type below is considered commercial real estate. of square feet of commercial space added in Hays County drastically uctuated based on the type and location, but in

MULTIFAMILY

INDUSTRIAL

RE TA I L

TOTAL VALUE OF ALL PROPERTY

San Marcos

Buda Kyle

San Marcos

Buda Kyle

San Marcos

Buda Kyle

$350M $280M $210M $140M $70M $0

$200M $160M $120M

$600M $480M $360M $240M $12M $0

$80M $40M $0

2019 2020 2021 2022

TOTAL SQUARE FEET OF ALL PROPERTY

San Marcos

Buda Kyle

San Marcos

Buda Kyle

San Marcos

Buda Kyle

25M 20M 15M 10M 5M 0

2.5M 2M 1.5M 1M 500K 0

4M 3.2M 2.4M 1.6M 800K 0

MULTIFAMILY: This includes commercial apartments, townhomes and other rental properties. ENTERTAINMENT: These properties include music venues, water parks, amusement parks, movie theaters and other entertainment. INDUSTRIAL: Storage, manufacturing, fabrication and shipping bays are just some of the uses that fall under this category. OFFICE: Both oce park and standalone oce spaces fall under this category as well as certain types of medical facilities. RETAIL: Shopping centers, restaurants and stand-alone stores fall under this category. SERVICE/AUTOMOTIVE: Tire centers, oil change locations and other automotive services fall under this category.

2019 2020 2021 2022 0

2019 2020 2021 2022

SOURCE: HAYS CENTRAL APPRAISAL DISTRICTCOMMUNITY IMPACT NEWSPAPER

county and 13,779,080 square feet of industrial space. “Major property types are moving in lockstep, showing noticeable increases in rent, absorption and construction. Industrial employment growth is contributing to multifamily demand, which in turn is propelling the need for retail services,” said Israel Linares, senior market analyst for CoStar Group for Central Texas. “I think the best way to kind of describe the dynamics at play in Hays County is that there’s been such a boom in terms of industrial sec- tor employment with logistics and dis- tribution, companies setting up there and more manufacturing,” he said. Linares said ever-rising prices in real estate in Austin also aect commercial enterprises, and that pushes compa- nies to look further outside the city.

“That paired with sort of the aord- ability issues of the urban core of Aus- tin has kind of spurred this growth down there. They all kind of are all interplaying at the same time,” he said. Navigating a hot market While there is not one singular fac- tor or dataset in determining why a commercial real estate market might be so competitive locally, there are a few things to consider to understand why it is happening. Linares described what he called a “three-pronged expansion” of retail, industrial and multifamily development along the I-35 corridor as the linchpin for fur- ther expansion, creating a demand for more people moving to the area as new projects continue with construction

and come to fruition. Jessica Inacio, senior director of business attraction at the Greater San Marcos Partnership, said new com- mercial spaces in general are lling up as they go up. “Specically in the innovation corri- dor, as we call it, where that pipeline between Austin and San Antonio [is located], we’re seeing more and more come online. … It’s getting lled up as quickly as it goes up,” Inacio said. “We’re seeing a lot more in speculative space going up, which is really a testa- ment to the market. [There is a] con- dence in the market that those tenants will be there when these buildings are getting constructed without a pre-ex- isting client or tenant to ll them.” Part of the condence is in the rate of

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