Real Estate Market Overview: Austin-Round Rock Area

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Houston, Texas real estate market overview provided by the Texas A&M Real Estate Research Center. For Greater Austin, including Round Rock and Pflugerville. NOTE: Full-sized view or download is …

Houston, Texas real estate market overview provided by the Texas A&M Real Estate Research Center. For Greater Austin, including Round Rock and Pflugerville. NOTE: Full-sized view or download is optimal.

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  • 1. Real Estate Market Overview 2007 Austin - Round Rock Originally a buffalo-hunting ground favored by Tonkawa Indians, Austin was permanently settled in 1838 as a trading post. The Austin-Round Rock Metropolitan Statistical Area (MSA) is now part of the I- 35 growth corridor in the heart of Texas. According to the U.S. Census Bureau, the Austin MSA experienced the largest increase in income in the state and was one of the country's fastest-growing cities during the 1990s, growing by nearly 48 percent. Austin, the capital of Texas, is home to the University of Texas, the largest university in the nation. The city supports a politically charged and culturally rich environment. Quick Facts Land Area 4,224 square miles 2006 Population Density 358.3 people per square mile Counties Bastrop, Caldwell, Hays, Travis, Williamson Area Cities and Towns Austin, Cedar Park, Georgetown, Leander, Lockhart, Pflugerville, Round Rock, San Marcos, Taylor * This report's MSA data reflects either 1999 or 2003 MSA definitions based on data availability. Use of 1999 definition is noted where applicable. Source: U.S. Census Bureau and Real Estate Center at Texas A&M University Microsoft product screen shot reprinted with permission from Microsoft Corporation.
  • 2. Metropolitan Statistical Areas (MSAs) DALLAM SHERMAN HANSFORD OCHILTREE LIPSCOMB HUTCHINSON HARTLEY MOORE ROBERTS HEMPHILL 2 CARSON POTTER WHEELER OLDHAM GRAY RANDALL ARMSTRONG DONLEY COLLINGSWORTH DEAF SMITH BRISCOE PARMER CASTRO SWISHER HALL CHILDRESS HARDEMAN WICHITA 25 BAILEY LAMB HALE FLOYD MOTLEY COTTLE WILBARGER FOARD 14 20 GRAYSON CLAY 21 LAMAR ARCHER MONTAGUE COOKE RED RIVER FANNIN COCHRAN HOCKLEY DICKENS KING KNOX BAYLOR LUBBOCK CROSBY BOWIE DELTA FRANKLIN WISE DENTON COLLIN HUNT JACK TITUS YOAKUM TERRY LYNN GARZA KENT STONEWALL HASKELL THROCKMORTON YOUNG HOPKINS 8 MORRIS CASS CAMP ROCKWALL RAINS PARKER WOOD UPSHUR MARION JONES SHACKLEFORD DALLAS TARRANT 1 GAINES DAWSON BORDEN SCURRY FISHER STEPHENS PALO PINTO KAUFMAN 22 13 GREGG SMITH HARRISON VAN ZANDT JOHNSON HOOD ELLIS CALLAHAN EASTLAND ANDREWS MARTIN HOWARD MITCHELL NOLAN TAYLOR ERATH SOMERVELL HENDERSON 17 16 PANOLA RUSK 9 NAVARRO HILL EL PASO 24 COMANCHE CHEROKEE BOSQUE STERLING COKE LOVING RUNNELS WINKLER ANDERSON ECTOR MIDLAND COLEMAN BROWN SHELBY FREESTONE 18 HAMILTON GLASSCOCK MCLENNAN CORYELL NACOGDOCHES MILLS LIMESTONE 11 SAN CULBERSON WARD HUDSPETH CRANE AUGUSTINE UPTON REAGAN HOUSTON SABINE CONCHO LEON TOM GREEN LAMPASAS IRION FALLS REEVES ANGELINA MCCULLOCH SAN SABA ROBERTSON 6 BELL TRINITY MADISON JASPER NEWTON MENARD SCHLEICHER POLK BURNET TYLER MILAM PECOS WALKER BRAZOS JEFF DAVIS CROCKETT MASON LLANO SAN WILLIAMSON JACINTO BURLESON KIMBLE 4 SUTTON HARDIN 3 GRIMES TRAVIS MONTGOMERY GILLESPIE LEE BLANCO ORANGE TERRELL WASHINGTON LIBERTY 10 BASTROP JEFFERSON KERR HAYS AUSTIN PRESIDIO WALLER EDWARDS VAL VERDE CHAMBERS REAL KENDALL FAYETTE BREWSTER CALDWELL HARRIS COMAL BANDERA FORT BEND COLORADO 19 GUADALUPE GALVESTON GONZALES KINNEY LAVACA UVALDE MEDINA BRAZORIA WHARTON BEXAR 23 WILSON DE WITT JACKSON FRIO MATAGORDA ZAVALA KARNES MAVERICK ATASCOSA VICTORIA GOLIAD CALHOUN DIMMIT BEE REFUGIO MCMULLEN LA SALLE ARANSAS LIVE OAK 7 12 SAN PATRICIO JIM WELLS NUECES 1. Abilene 14. Lubbock DUVAL WEBB KLEBERG 2. Amarillo 15. McAllen-Edinburg-Mission 3. Austin-Round Rock 16. Midland JIM HOGG ZAPATA BROOKS KENEDY 4. Beaumont-Port Arthur 17. Odessa 15 5. Brownsville-Harlingen 18. San Angelo STARR WILLACY 6. College Station-Bryan 19. San Antonio HIDALGO 5 CAMERON 7. Corpus Christi 20. Sherman-Denison 8. Dallas-Fort Worth-Arlington 21. Texarkana 9. El Paso 22. Tyler 10. Houston-Sugar Land-Baytown 23. Victoria 11. Killeen-Temple-Fort Hood 24. Waco 12. Laredo 25. Wichita Falls 13. Longview Prepared by the Labor Market and Career Information Department, TWC Edited by Real Estate Center at Texas A&M University
  • 3. Table of Contents Demographics ..............................................................................................1 Education .....................................................................................................4 Employment .................................................................................................5 Economy ....................................................................................................10 Infrastructure ..............................................................................................11 Public Facilities ..........................................................................................12 Multifamily ..................................................................................................14 Housing ......................................................................................................17 Retail ..........................................................................................................24 Hotel...........................................................................................................29 Office..........................................................................................................31 Industrial ....................................................................................................36
  • 4. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Demographics Austin MSA Population Percent Change Year Population - 1996 1,073,037 3.6 1997 1,111,264 4.0 1998 1,155,579 4.4 1999 1,205,898 3.6 2000 1,249,763 5.5 2001 1,319,000 2.1 2002 1,346,332 2.2 2003 1,376,005 2.6 2004 1,411,199 2.9 2005 1,452,529 4.2 2006 1,513,565 * July 1 population estimates Source: U.S. Census Bureau County Population* Growth Growth 1996-2006 County 1996 2006 (in percent) Bastrop 48,739 71,684 47.1 Caldwell 29,546 36,720 24.3 Hays 82,010 130,325 58.9 Travis 717,194 921,006 28.4 Williamson 195,548 353,830 80.9 * July 1 population estimates Source: U.S. Census Bureau Area Cities With 10,000 or More Residents 1990 2000 Growth 1990 - 2000 City Population Population (in percent) Austin 465,622 656,562 41.0 Cedar Park 5,161 26,049 404.7 Georgetown 14,842 28,339 90.9 Lockhart 9,205 11,615 26.2 Pflugerville 4,444 16,335 267.6 Round Rock 30,923 61,136 97.7 San Marcos 28,743 34,733 20.8 Taylor 11,472 13,575 18.3 Source: U.S. Census Bureau -1-
  • 5. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Texas Metropolitan Area Population* Change Percent Metropolitan Area 1996 2006 Change Austin-Round Rock 1,073,037 1,513,565 41.1 McAllen-Edinburg-Mission 503,411 700,634 39.2 Laredo 171,583 231,470 34.9 Dallas-Fort Worth-Arlington 4,627,649 6,003,967 29.7 Houston-Sugar Land-Baytown 4,334,020 5,539,949 27.8 Brownsville-Harlingen 312,086 387,717 24.2 San Antonio 1,599,427 1,942,217 21.4 Texas 19,340,342 22,859,968 18.2 Tyler 166,087 194,635 17.2 Sherman-Denison 102,993 118,478 15.0 El Paso 656,482 736,310 12.2 College Station-Bryan 172,341 192,152 11.5 Amarillo 217,579 241,515 11.0 Killeen-Temple-Fort Hood 318,613 351,322 10.3 Waco 205,894 226,189 9.9 Midland 114,412 124,380 8.7 Longview 190,556 203,367 6.7 Lubbock 247,099 261,411 5.8 Texarkana 127,694 134,510 5.3 Victoria 108,636 114,088 5.0 Odessa 121,519 127,462 4.9 Corpus Christi 398,529 415,810 4.3 San Angelo 104,574 105,752 1.1 Abilene 156,351 158,063 1.1 Beaumont-Port Arthur 380,417 379,640 -0.2 Wichita Falls 151,170 145,528 -3.7 * July 1 population estimates Source: U.S. Census Bureau Austin-Round Rock MSA Projected Population Texas State Data Center Texas Water Development Year (Scenario 0.5) Board 1,249,763 2000 1,249,763 1,405,638 2005 - 1,563,179 2010 1,610,452 1,727,413 2015 - 1,898,404 2020 2,061,706 2,079,470 2025 - 2,269,254 2030 2,508,413 2,463,056 2035 - 2,658,510 2040 2,937,897 Sources: Texas State Data Center (2006 projection) and Texas Water Development Board (2006 projection) -2-
  • 6. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Texas Metropolitan Area Population Growth Forecast, 2000 - 2020 Texarkana Wichita Falls Beaumont-Port Arthur Abilene San Angelo Sherman-Denison Longview Lubbock Midland Tyler Waco Odessa Victoria College Station-Bryan Amarillo San Antonio Corpus Christi Texas Killeen-Temple-Fort Hood Houston-Sugar Land-Baytown El Paso Dallas-Fort Worth-Arlington Brownsville-Harlingen Austin-Round Rock McAllen-Edinburg-Mission Laredo 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Source: Texas State Data Center – Scenario 0.5 (2006 projection) Household Composition Austin MSA Texas Average household size (2000) 2.57 2.74 Population younger than 18 (2000, in percent) 25.4 28.2 Population 65 and older (2000, in percent) 7.3 9.9 Source: U.S. Census Bureau (1999 definition) Distribution by Race and Hispanic or Latino Origin, 2000 (in percent) Austin MSA Texas White 72.5 71.0 Black 8.0 11.5 Asian 3.5 2.7 American Indian 0.6 0.6 Other 12.8 11.7 Two or more races 2.6 2.5 Hispanic (of any race) 26.2 32.0 Source: U.S. Census Bureau (1999 definition) -3-
  • 7. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Education Educational Attainment, Persons Age 25 and Older, 2000 (in percent) High school Some college, Associate's Bachelor's Master's Doctorate graduate no degree degree degree degree degree County Bastrop 31.7 22.9 5.3 12.4 3.1 0.5 Caldwell 34.8 20.2 3.1 10.0 2.6 0.2 Hays 22.9 25.6 4.8 20.4 7.4 1.9 Travis 17.3 21.5 5.2 26.1 9.6 2.1 Williamson 22.2 26.4 6.6 24.4 6.8 1.1 Texas 24.8 22.4 5.2 15.6 5.2 0.8 Source: U.S. Census Bureau Educational Level, Persons Age 25 and Older, 2000 (in percent) Austin Level of Education MSA Texas High School Graduate or Higher 84.8 75.7 Bachelor's Degree or Higher 36.7 23.2 Source: U.S. Census Bureau (1999 definition) Local College and University Enrollment, Fall Semester School 2002 2003 2004 2005 2006 Austin Community College 29,156 28,862 29,004 30,499 31,610 Concordia University 1,045 1,061 1,114 1,193 1,239 Huston-Tillotson University 642 666 685 706 742 St. Edward's University 4,266 4,441 4,648 4,928 5,218 Texas State University - San Marcos 25,025 26,306 26,783 27,129 27,485 University of Texas 52,261 51,426 50,377 49,233 49,697 Source: Texas Higher Education Coordinating Board -4-
  • 8. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Employment Top Ten Employers Employer Sector Employees Local Government Government 69,700 State Government Government 65,900 University of Texas at Austin Higher education 20,249 Dell Inc. Personal computer systems 16,000 Federal Government Government 10,800 Austin School District Public education 10,408 Seton Family of Hospitals Medical care 7,500 Freescale Semiconductor Inc. Microprocessors 6,600 H.E.Butt Grocery Co. (Austin regional office) Retail 6,200 IBM Corporation Circuit cards, hardware and software 6,200 Source: Texas Workforce Commission July 2006 Top Ten Private Employers Employer Sector Employees Dell Inc. Personal computer systems 16,000 Seton Family of Hospitals Medical care 7,500 Freescale Semiconductor Inc. Microprocessors 6,600 H.E.Butt Grocery Co. (Austin regional office) Retail 6,200 IBM Corporation Circuit cards, hardware and software 6,200 St. David's Healthcare Healthcare 5,048 Wal-Mart Retail 4,700 Advanced Micro Devices, Inc. (AMD) Semiconductors 3,000 Applied Materials Semiconductors 2,200 National Instruments Computer software developer 2,000 Source: Texas Workforce Commission July 2006 -5-
  • 9. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Employment Growth by Industry Austin-Round Rock MSA Texas Employment Growth 2006 (Percent Change) 3.9 3.3 Unemployment Rate 2006 (Percent Change) 4.1 4.9 Net Job Change in 2006 26,700 318,300 2006 Employment Growth by Sector (Percent Change) Natural Resources and Mining and Construction 11.0 7.5 Manufacturing 2.4 3.2 Trade, Transportation, and Utilities 4.1 2.5 Information 0.9 -0.4 Financial Activities 5.1 2.6 Professional and Business Services 5.1 6.0 Educational and Health Services 2.2 2.8 Leisure and Hospitality 6.3 3.9 Government 1.3 1.7 Source: Texas Workforce Commission and Real Estate Center at Texas A&M University Texas Metropolitan Area Nonfarm Employment Change Percent Metropolitan Area 1996 2006 Change McAllen-Edinburg-Mission 126,900 202,600 59.7 Midland 126,900 202,600 59.7 Laredo 56,500 84,200 49.0 Austin-Round Rock 540,900 720,000 33.1 Brownsville-Harlingen 94,000 121,300 29.0 College Station-Bryan 71,400 90,200 26.3 Tyler 73,700 91,700 24.4 Killeen-Temple-Fort Hood 97,600 118,100 21.0 Dallas-Fort Worth-Arlington 2,331,600 2,860,800 22.7 San Antonio 658,300 811,300 23.2 Longview 76,100 91,600 20.4 Houston-Sugar Land-Baytown 1,981,700 2,446,000 23.4 Texas 8,257,900 10,053,300 21.7 Lubbock 111,300 128,400 15.4 Waco 92,600 106,000 14.5 Corpus Christi 155,100 173,800 12.1 Odessa 48,100 57,400 19.3 Amarillo 96,900 110,100 13.6 Victoria 45,200 50,000 10.6 El Paso 236,700 264,800 11.9 Texarkana 50,300 55,700 10.7 Sherman-Denison 42,000 44,500 6.0 Abilene 60,600 65,300 7.8 San Angelo 42,500 44,700 5.2 Wichita Falls 59,600 62,500 4.9 Beaumont-Port Arthur 151,200 160,500 6.2 Source: Texas Workforce Commission and Real Estate Center at Texas A&M University -6-
  • 10. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Metropolitan Area Nonfarm Employment Change 1996-2006 Wichita Falls San Angelo Sherman-Denison Beaumont-Port Arthur Abilene Victoria Texarkana El Paso Corpus Christi Amarillo Waco Lubbock Odessa Longview Killeen-Temple-Fort Hood Texas Dallas-Fort Worth-Arlington San Antonio Houston-Sugar Land-Baytown Tyler College Station-Bryan Brownsville-Harlingen Austin-Round Rock Laredo Midland McAllen-Edinburg-Mission 0% 10% 20% 30% 40% 50% 60% 70% Source: Texas Workforce Commission and Real Estate Center Average Hourly Wage 2005 Brownsville-Harlingen $12.25 McAllen-Edinburg-Mission $12.72 Abilene $13.39 Laredo $13.50 San Angelo $14.08 El Paso $14.14 Wichita Falls $14.17 Killeen-Temple-Fort Hood $14.23 Waco $14.45 Longview $14.63 Sherman-Denison $14.66 Texarkana $14.71 Corpus Christi $14.89 Tyler $15.11 Odessa $15.11 Victoria $15.34 Amarillo $15.37 Lubbock $15.51 Beaumont-Port Arthur $15.59 San Antonio $15.76 College Station-Bryan $15.85 Midland $16.56 Texas $17.10 Austin-Round Rock $18.71 Houston-Sugar Land-Baytown $18.76 Dallas-Fort Worth-Arlington $18.84 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 Source: Texas Workforce Commission -7-
  • 11. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock MSA Nonfarm Employment Percent Change Year Employment 540,900 - 1996 566,300 4.7 1997 600,700 6.1 1998 635,400 5.8 1999 672,700 5.9 2000 674,100 0.2 2001 658,400 -2.3 2002 653,000 -0.8 2003 667,400 2.2 2004 693,300 3.9 2005 720,000 3.9 2006 Source: Texas Workforce Commission and Real Estate Center at Texas A&M University Nonfarm Employment Growth Austin-Round Rock MSA 7.0 6.0 5.0 Percent Change from Previous Year 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Texas Workforce Commission and Real Estate Center at Texas A&M University -8-
  • 12. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock MSA Unemployment Rate 7 6 5 4 Percent 3 2 1 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Texas Workforce Commission and Real Estate Center at Texas A&M University Distribution of Employment in Major Categories Austin-Round Rock MSA 800,000 700,000 600,000 Total Annual Jobs 500,000 400,000 300,000 200,000 100,000 0 2002 2003 2004 2005 2006 Natural Resources and Mining and Construction Manufacturing Trade, Transportation, and Utilities Information Financial Activities Professional and Business Services Educational and Health Services Leisure and Hospitality Government Source: Texas Workforce Commission and Real Estate Center at Texas A&M University -9-
  • 13. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Economy Austin-Round Rock Gross Retail Sales Sales per Capita Year Total Sales 1995 $10,910,789,589 #N/A 1996 $11,856,282,020 $11,049 1997 $13,041,622,170 $11,736 1998 $13,938,050,757 $12,062 1999 $15,595,121,628 $12,932 2000 $18,067,257,543 $14,457 2001 $18,727,357,098 $14,198 2002 $18,767,884,229 $13,940 2003 $19,688,227,806 $14,308 2004 $20,927,995,264 $14,830 2005 $22,271,899,450 $15,333 State Average 2005: $15,935 * 2006 data not available as of April 15, 2007. Source: Texas Comptroller's Office Gross Retail Sales per Capita 2005 Brownsville-Harlingen Texarkana McAllen-Edinburg-Mission El Paso Corpus Christi Wichita Falls Beaumont-Port Arthur College Station-Bryan Sherman-Denison Waco Abilene San Angelo Laredo Victoria Killeen-Temple-Fort Hood Houston-Sugar Land-Baytown San Antonio Fort Worth-Arlington MD Amarillo Longview Tyler Austin-Round Rock Odessa Texas Midland Dallas-Plano-Irving MD Lubbock $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000 Source: Texas Comptroller's Office - 10 -
  • 14. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Infrastructure Austin Airline Activity 2002 2003 2004 2005 2006 Austin-Bergstrom International Airport Enplaned (int'l & national) 3,439,302 3,306,357 3,707,864 3,922,203 4,211,309 Deplaned (int'l & national) 3,281,366 3,400,724 3,530,781 3,761,342 4,050,001 Total (int'l & national) 6,720,668 6,707,081 7,238,645 7,683,545 8,261,310 Source: Austin-Bergstrom International Airport Austin Cargo Statistics 2002 2003 2004 2005 2006 Austin-Bergstrom 285,896,271 252,276,024 254,419,495 241,814,505 229,750,544 International Airport Source: Austin-Bergstrom International Airport - 11 -
  • 15. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Public Facilities Austin City Public Facilities Building Permits 2005* Austin City Building Permit Office * 2006 data not available as of April 15, 2007. Cedar Park City Public Facilities Building Permits 2005* Cedar Park City Building Permits Building Permits * 2006 data not available as of April 15, 2007. - 12 -
  • 16. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Round Rock Public Facilities Building Permits 2005* Round Rock City Building Permit Office * 2006 data not available as of April 15, 2007. - 13 -
  • 17. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Multifamily Austin Apartment Statistics 2006 San Texas Austin Marcos Metro Area Average rent per square foot $0.85 $0.86 $0.77 Average rent for units built since 2000 $0.86 $0.95 $0.86 Average occupancy 94.6% 93.5% 92.8% Average occupancy for units built since 2000 94.2% 92.2% 94.1% Source: Apartment MarketData Research Austin MSA Multifamily Market Historical Rent and Occupancy 100.00% $1.00 $0.98 $0.97 $0.90 98.00% $0.91 $0.89 $0.88 $0.85 $0.80 $0.83 96.00% $0.82 $0.81 $0.80 $0.78 $0.77 $0.70 94.00% $0.60 92.00% $0.50 90.00% $0.40 88.00% $0.30 86.00% $0.20 84.00% $0.10 82.00% $0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Occupancy Rental Rate Source: Austin Investor Interests www.apartmenttrends.com - 14 -
  • 18. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-San Marcos Multifamily Building Permits 5+ Multifamily Building Permits 9000 8000 7000 6000 5000 Units 4000 3000 2000 1000 p 0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: U.S. Bureau of Census and Real Estate Center at Texas A&M University 2006 figure is a preliminary number. Austin City Multifamily Building Permits 2005* Austin City Building Permit Office * 2006 data not available as of April 15, 2007. - 15 -
  • 19. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Round Rock Multifamily Building Permits 2005* Round Rock City Building Permit Office * 2006 data not available as of April 15, 2007. - 16 -
  • 20. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Housing 2006 Housing Affordability Index Required Median HAI for First- 2006 Median- Income to Family Time MLS Priced Home Qualify Income HAI* Homebuyers** Austin $172,000 $42,313 $69,600 1.64 1.09 1.54 1.05 State $143,000 $35,179 $54,300 1.10 0.62 US $221,900 $54,139 $59,600 * The HAI is the ratio of the median family income to the income required to buy the median-priced house using standard mortgage financing at the current interest rate. Standard financing is a fixed-rate, 30-year loan covering 80 percent of the cost of the home. A HAI of 1.00 indicates that the median family income is exactly equal to the required income to qualify for the standard loan to purchase the median-priced house. ** First-time home buyer is assumed to purchase a home equal to the first quartile home price using a 90% home loan at an interest rate 0.5 percent greater than the standard current rate. Source: Real Estate Center at Texas A&M University Price Distribution of MLS Homes Sold, Austin Area (in percent) Price Range 2000 2001 2002 2003 2004 2005 2006 $29,999 or less 0.3 0.3 0.3 0.4 0.7 0.5 0.3 30,000 - 39,999 0.4 0.4 0.3 0.6 1.0 0.8 0.6 40,000 - 49,999 0.8 0.6 0.6 0.8 1.1 0.8 0.6 50,000 - 59,999 1.3 0.9 0.9 1.1 1.2 1.0 0.9 60,000 - 69,999 2.1 1.3 1.2 1.4 1.6 1.4 1.1 70,000 - 79,999 2.7 1.8 1.6 1.6 2.3 2.0 1.6 80,000 - 89,999 4.9 3.2 2.5 2.9 3.1 3.0 2.2 90,000 - 99,999 7.3 4.5 3.9 3.9 4.0 3.7 2.7 100,000 - 119,999 14.9 14.6 13.3 12.6 12.1 11.0 9.0 120,000 - 139,999 13.0 16.2 16.5 15.6 14.7 13.7 13.6 140,000 - 159,999 10.1 11.7 12.5 12.1 11.7 11.4 11.4 160,000 - 179,999 7.8 9.4 9.4 9.4 8.8 9.3 10.2 180,000 - 199,999 5.9 6.4 6.6 6.5 6.4 6.7 7.1 200,000 - 249,999 9.9 10.2 10.8 10.7 10.5 11.2 11.7 250,000 - 299,999 6.2 6.5 7.4 7.4 6.9 7.2 8.0 300,000 - 399,999 5.8 6.2 6.5 6.5 7.2 8.2 8.8 400,000 - 499,999 2.7 2.2 2.4 2.6 2.8 3.5 4.2 500,000 and more 4.0 3.6 3.5 3.7 4.0 4.6 6.0 Source: Real Estate Center at Texas A&M University - 17 -
  • 21. Austin Neighborhoods 183 Pflugerville 35 Anderson Mill Estates Wells Branch Jollyville Balcones McNeil Village Estates 620 N Balcones Austin Woods Hills Great Gracy Jester Hills Woods Estates 360 Quail 2222 Lakewood Creek Steiner Windsor Ranch 1 Hills Northwest Georgian Hills Acres Crestview Allandale 290 Highland St. Johns Park West Davenport University Ranch Hills Rosedale Walnut 2244 Colony West Hills Tarrytown Hyde Park Lake Bryker Park Delwood Springdale Hills Woods Hills Lost French Enfield Place Creek UT Rollingwood Clarksville The Estate of 969 183 Capitol 360 Barton Creek Kennedy Ridge 1 Govalle Barton Bouldin Travis 71 Hills Heights Oak Hornsby Hill Montopolis Bend 290 Southside Sunset Valley Del Valle Austin- Maple Bergstrom 71 Run Cherry International Dove Creek Airport Springs 35 Buckingham Circle C Estates Shady Hollow Texas Tanglewood Oaks Forest San Leanne Onion Creek Manchaca © Real Estate Center at Texas A&M University
  • 22. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Price Distribution of MLS Homes Sold Austin Area 16.0 14.0 12.0 10.0 Percent 8.0 6.0 4.0 2.0 0.0 ss 99 99 99 9 9 99 9 9 9 e 9 9 99 9 9 9 9 or 9 9 9 9 9 9 9 9 9 9 9 le ,9 ,9 ,9 ,9 ,9 ,9 9 9 9 9 9 ,9 9 9 9 ,9 m 9, 9, 9, 9, 9, 9, 9, 9, 19 39 59 79 99 49 59 9 or 3 4 6 7 8 9 9 9 9 d 1 1 1 1 1 2 2 3 4 an 9 - - - - - - - 9 - - - - - - - - - 00 00 00 0 0 0 0 ,9 0 0 0 0 00 00 00 0 0 00 0 0 0 0 0 ,0 ,0 ,0 ,0 ,0 ,0 0 0 0 0 0 ,0 9 0 ,0 ,0 ,0 ,0 ,0 ,0 0 0 ,0 2 0 0 0 60 70 0 90 0, 0, 0, $ 0 0 0 60 80 0 00 3 4 5 8 0 10 12 14 20 5 0 5 1 1 2 3 4 2004 2005 2006 Source: Real Estate Center at Texas A&M University Property Tax Rates, 2006 County, Major City, Major School District Tax Rate per $100 Valuation Taxing Entity* Travis County 0.4499 City of Austin 0.4126 Austin ISD 1.4930 Total $2.36 Tax Rate per $100 Valuation Taxing Entity* Williamson County 0.4675 City of Round Rock 0.3711 Round Rock ISD 1.6406 Total $2.48 Tax Rate per $100 Valuation Taxing Entity* Hays County 0.3790 City of San Marcos 0.4702 San Marcos ISD 1.7000 Total $2.55 * Only the typical taxing entities are listed. However, there are numerous numbers of taxing entities that need to be taken into account for an actual tax rate calculation. See following links for more complete lists: http://www.traviscad.org/06rates.pdf http://www.hayscad.com/PA/haysweb/taxrates.htm http://www.wcad.org/ (tax rates) Source: Travis, Williamson, and Hays County Appraisal District - 19 -
  • 23. Real Estate Center Market Overview 2007 Austin-Round Rock, TX National Home Price Appreciation The HPI for each geographic area is estimated using repeated observations of housing values for individual single-family residential properties on which at least two mortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae. 30% California 25% Florida 20% Change from Previous Year 15% 10% USA 5% Texas 0% -5% 4Q-96 2Q-97 4Q-97 2Q-98 4Q-98 2Q-99 4Q-99 2Q-00 4Q-00 2Q-01 4Q-01 2Q-02 4Q-02 2Q-03 4Q-03 2Q-04 4Q-04 2Q-05 4Q-05 2Q-06 4Q-06 California Florida Texas USA Source: Office of Federal Housing Enterprise Oversight Home Price Appreciation Austin-Round Rock MSA The HPI for each geographic area is estimated using repeated observations of housing values for individual single-family residential properties on which at least two mortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae. 16.0% 14.0% 12.0% Change from Previous Year 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% 4Q-96 2Q-97 4Q-97 2Q-98 4Q-98 2Q-99 4Q-99 2Q-00 4Q-00 2Q-01 4Q-01 2Q-02 4Q-02 2Q-03 4Q-03 2Q-04 4Q-04 2Q-05 4Q-05 2Q-06 4Q-06 Austin-Round Rock Texas USA Source: Office of Federal Housing Enterprise Oversight - 20 -
  • 24. Real Estate Center Market Overview 2007 Austin-Round Rock, TX 2005 Occupied Housing Unit Characteristics Austin-Round Rock MSA Texas Owner- Renter- Total Owner- Renter- Total occupied occupied occupied occupied occupied occupied housing housing housing housing housing housing units units units units units units Housing Unit Characteristics Occupied housing units 326,484 214,201 540,685 5,162,604 2,815,491 7,978,095 Household Size 1-person household 20.0% 42.6% 29.0% 19.1% 35.0% 24.7% 2-person household 35.9% 28.2% 32.9% 34.2% 25.8% 31.2% 3-person household 16.9% 12.6% 15.2% 17.2% 16.0% 16.8% 4-or-more-person household 27.2% 16.5% 23.0% 29.5% 23.2% 27.3% Race and Hispanic or Latino Origin of Householder One Race White 81.3% 69.7% 76.7% 79.0% 66.2% 74.5% Black or African American 5.3% 9.9% 7.1% 8.2% 17.9% 11.6% American Indian and Alaska Native 0.7% 0.3% 0.6% 0.5% 0.6% 0.6% Asian 3.5% 5.0% 4.1% 2.9% 3.1% 3.0% Native Hawaiian and Other Pacific Islander - - 0.0% 0.0% 0.1% 0.0% Some other race 8.0% 13.6% 10.2% 8.3% 10.8% 9.2% Two or more races 1.2% 1.5% 1.3% 1.0% 1.4% 1.2% Age of Householder Under 35 years 18.0% 55.6% 32.9% 14.4% 46.3% 25.6% 35 to 44 years 25.3% 19.6% 23.0% 21.9% 21.4% 21.7% 45 to 54 years 24.8% 13.7% 20.4% 24.1% 15.4% 21.0% 55 to 64 years 16.1% 5.9% 12.1% 18.1% 8.3% 14.7% 65 to 74 years 9.3% 2.5% 6.6% 11.9% 4.2% 9.2% 75 to 84 years 4.9% 1.8% 3.7% 7.6% 3.1% 6.1% 85 years and over 1.6% 0.9% 1.3% 2.0% 1.3% 1.8% Units in Structure 1, detached 87.7% 18.1% 60.1% 87.5% 28.3% 66.6% 1, attached 2.7% 4.5% 3.4% 2.3% 3.6% 2.8% 2 apartments 0.7% 7.4% 3.3% 0.3% 4.9% 1.9% 3 or 4 apartments 0.4% 6.4% 2.8% 0.4% 8.8% 3.3% 5 to 9 apartments 0.2% 10.8% 4.4% 0.3% 13.8% 5.1% 10 or more apartments 1.4% 49.4% 20.4% 0.7% 35.1% 12.9% Mobile home or other type of housing 6.9% 3.4% 5.5% 8.5% 5.6% 7.5% Year Structure Built 2000 or later 19.6% 17.7% 18.9% 13.7% 10.9% 12.7% 1990 to 1999 25.7% 19.1% 23.1% 18.6% 14.8% 17.2% 1980 to 1989 21.4% 23.6% 22.2% 18.7% 22.5% 20.1% 1960 to 1979 20.4% 30.5% 24.4% 28.7% 35.0% 30.9% 1940 to 1959 9.0% 7.0% 8.2% 15.4% 12.4% 14.3% 1939 or earlier 3.9% 2.0% 3.2% 4.9% 4.5% 4.8% Bedrooms No bedroom 0.2% 2.0% 0.9% 0.2% 1.5% 0.6% 1 bedroom 2.0% 38.1% 16.3% 2.1% 32.6% 12.9% 2 or 3 bedrooms 65.8% 56.3% 62.0% 70.8% 61.7% 67.6% 4 or more bedrooms 32.0% 3.6% 20.8% 26.8% 4.2% 18.9% Annual Household Income and Housing Costs* Median household income (dollars) $71,389 $30,992 $50,484 $54,610 $26,782 $42,139 Annual Median Housing Costs (dollars) $15,336 $8,964 $11,664 $10,536 $8,052 $9,108 Housing Costs as a percentage of household income 21.5% 28.9% 23.1% 19.3% 30.1% 21.6% * in 2005 inflation-adjusted dollars Source: U.S. Census Bureau 2005 and Real Estate Center at Texas A&M University - 21 -
  • 25. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Yearly Homes Sales and Months Inventory Austin MLS 35,000 7 30,000 6 25,000 5 Months Inventory 20,000 4 Sales 15,000 3 10,000 2 Months of Inventory measures the current absorption rate and how long it 5,000 1 would take for current supply to be depleted if no other listings came on the market. 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Sales Supply Source: Real Estate Center at Texas A&M University Average Sales Price Austin MLS $250,000 $200,000 $150,000 $100,000 $50,000 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Real Estate Center at Texas A&M University - 22 -
  • 26. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Single-Family Homes Sales Volume Austin MLS 3,500 3,000 2,500 2,000 Units 1,500 1,000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2004 2005 2006 Source: Real Estate Center at Texas A&M University Single-Family Building Permits and Average Value Austin-San Marcos 20000 $160,000 18000 $140,000 16000 $120,000 14000 $100,000 Average Value 12000 Units 10000 $80,000 8000 $60,000 6000 $40,000 4000 $20,000 2000 0 $0 2006 p 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 figure is a preliminary number. Units Average Value Source: U.S. Bureau of Census and Real Estate Center at Texas A&M University - 23 -
  • 27. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Retail Austin Retail Market Average Monthly Base Overall Total Sq. Ft. Average Monthly Base Rental Rental Rate 100,000 Sq. Occupancy (in Year-End Tracked Rate 50,000-100,000 Sq. Ft. Ft. and Up percent) 1996 12,535,813 $1.07 $1.26 91.03 1997 13,287,479 $1.15 $1.32 92.77 1998 13,958,132 $1.21 $1.40 93.49 1999 14,563,469 $1.25 $1.44 94.83 2000 15,878,458 $1.36 $1.57 95.77 2001 16,850,866 $1.39 $1.62 94.47 2002 17,179,470 $1.41 $1.64 94.65 2003 17,814,319 $1.43 $1.66 93.35 2004 18,619,585 $1.45 $1.75 93.89 2005 18,763,591 $1.41 $1.82 92.89 2006 18,608,587 $1.54 $1.81 93.30 Source: NAI Commercial Industrial Properties Co. The Source Current Six Month Retail Absorption Total Sq. Ft. Sq. Ft. Percent Absorbed (1) Absorbed (2) Occupied Sector Sq. Ft. Arboretum 1,583,866 (9,553) (28,457) 93.54 Cedar Park 354,928 3,774 0 94.14 Central 593,563 4,964 (4,350) 96.37 East 1,043,578 (15,000) (25,872) 90.94 Far North 1,035,134 23,680 (4,902) 91.07 Far Northwest 3,195,534 (6,878) (9,873) 92.76 Georgetown 474,820 (3,908) (53,687) 77.12 North 1,926,492 8,635 15,662 92.55 Northeast 692,120 23,436 (6,148) 97.21 Northwest 60,600 0 0 100.00 Pflugerville 184,431 (4,739) 0 92.43 Round Rock 2,681,747 0 2,744 94.25 Southcentral 2,035,746 197 19,221 97.22 Southeast 272,029 1,440 (3,350) 97.23 Southwest 1,531,020 0 (5,208) 97.33 West 942,979 4,588 (6,117) 88.57 Total 18,608,587 30,636 (110,337) 93.47 (1) Centers 50,000 to 100,000 sq. ft. (2) Centers over 100,000 sq. ft. Source: NAI Commercial Industrial Properties Co. The Source, Dec-2006 - 24 -
  • 28. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Retail Centers 50,000 to 100,000 Square Feet, Year-End 2006 Occupied Percent Avg. Monthly Sector Total Sq. Ft. Sq. Ft. Occupied Rate Arboretum 163,543 153,990 94 $2.29 Cedar Park 240,928 220,112 91 $1.75 Central 62,895 46,695 74 $1.75 East 240,406 225,406 94 $1.04 Far North 391,560 330,438 84 $1.35 Far Northwest 751,369 675,465 90 $1.46 Georgetown 170,362 142,609 84 $1.18 North 407,345 386,290 95 $1.41 Northeast 162,730 153,416 94 $1.77 Northwest 60,600 60,600 100 $1.25 Pflugerville 184,431 170,477 92 $1.25 Round Rock 132,883 126,806 95 $1.48 Southcentral 408,406 390,576 96 $1.39 Southeast 170,854 170,854 100 $1.14 Southwest 148,086 148,086 100 $2.41 West 250,717 197,805 79 $2.35 Total 3,947,115 3,599,625 91 $1.54 Source: NAI Commercial Industrial Properties Co. The Source Retail Centers Larger Than 100,000 Square Feet, Year-End 2006 Total Sq. Occupied Percent Avg. Monthly Sector Ft. Sq. Ft. Occupied Rate Arboretum 1,420,323 1,327,574 93 $2.34 Cedar Park 114,000 114,000 100 $1.96 Central 530,668 525,318 99 $2.30 East 803,172 723,654 90 $1.50 Far North 643,574 612,285 95 $1.47 Far Northwest 2,444,165 2,288,581 94 $1.76 Georgetown 304,458 223,589 73 $1.83 North 1,519,147 1,396,688 92 $1.24 Northeast 529,390 519,427 98 $1.67 Northwest 0 0 0 $0.00 Pflugerville 0 0 0 $0.00 Round Rock 2,548,864 2,400,762 94 $1.89 Southcentral 1,627,340 1,588,604 98 $1.58 Southeast 101,175 93,628 93 $1.25 Southwest 1,382,934 1,342,059 97 $2.12 West 692,262 637,371 92 $2.37 Total 14,661,472 13,793,540 94 $1.81 Source: NAI Commercial Industrial Properties Co. The Source - 25 -
  • 29. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Retail Market Space by Sector Year-End 2006 Arboretum Cedar Park West 9% 2% 5% Southwest 8% Central Southeast 3% 1% East 6% South Central 11% Far North 6% Round Rock Far Northwest 14% 17% Georgetown Pflugerville North 3% 1% 10% Northwest Northeast 0% 4% Source: NAI CIP The Source Retail Market Average Monthly Base Rental Rates $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 50,000 to 100,000 sq. ft. 100,000 sq. ft. and up Source: NAI CIP The Source - 26 -
  • 30. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Retail Market Overall Occupancy Rate 96% 96% 95% 95% 94% 94% 93% 93% 92% 92% 91% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: NAI CIP The Source Cedar Park City Retail Building Permits 2005* Cedar Park City Building Permit Office * 2006 data not available as of April 15, 2007. - 27 -
  • 31. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin City Retail Building Permits 2005* Austin City Building Permit Office * 2006 data not available as of April 15, 2007. - 28 -
  • 32. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Hotel Hotel* Occupancy and Rental Rates 2005 2006 Austin - Austin - Round Rock Round Rock Texas Texas 333.6 341 # Rooms 000's 25.1 25.4 $74.38 $80.82 Average daily rate $86.34 $96.05 59.9 61.1 Occupancy rate (in percent) 62.4 66.4 *Only properties exceeding $18,000 in the current quarter are included; those units below $18,000 only result in 1.5% of the total state revenues, and have been excluded from this database. Source: Office of the Governor Economic Development and Tourism and Source Strategies, Inc. of San Antonio Austin City Hotel Building Permits 2005* Austin City Building Permit Office * 2006 data not available as of April 15, 2007. - 29 -
  • 33. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Hotel Building Permits 2005* San Marcos City Building Permit Office * 2006 data not available as of April 15, 2007. - 30 -
  • 34. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Office 2006 Year-End Market Summary Vacant Sq. Sq. Ft. Occupied (in Weighted Rental Rates Sector Total Sq. Ft. Ft. Absorbed percent) Class B Class A Avg. CBD 8,558,129 1,607,743 277,416 81% $24.27 $29.67 $27.74 North 2,701,438 523,566 (43,613) 81% $21.00 $24.49 $21.74 Northwest 13,680,125 1,091,702 649,415 92% $20.79 $24.49 $23.25 Northeast 1,801,783 587,292 (153,875) 67% $17.20 $15.00 $17.11 South 1,395,948 171,722 13,508 88% $19.19 $25.35 $19.99 Southwest 6,218,997 465,633 85,395 93% $23.17 $25.79 $24.90 Southeast 236,708 56,556 (1,247) 76% $15.00 $21.39 $20.75 Total 34,593,128 4,504,214 826,999 83% $21.40 $26.18 $24.16 Source: NAI Commercial Industrial Properties Co. The Source 2005 Year-End Sublease Market Summary* Sublease Effective Market Sublease Average Average Term Vacancy Vacancy Sector Sq. Ft. Rental Rate (months) (in percent) (in percent) CBD 86,532 $17.26 20 1% 24% North 20,996 $19.91 85 1% 19% Northwest 445,902 $22.21 85 3% 16% Northeast 10,673 $20.50 11 1% 24% South 22,094 $14.15 107 2% 17% Southwest 97,550 $18.57 41 2% 10% Southeast 10,802 $18.22 18 5% 27% City-Wide Totals 694,549 $20.67 69 2% 18% * 2006 data is not yet available. Source: NAI Commercial Industrial Properties Co. The Source - 31 -
  • 35. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Overall Office Rental Rates Against Occupancy (All Classes) 90% $25.00 $22.43 88% $20.37 $20.31 86% $20.00 $18.76 $18.01 84% 82% $15.00 Rental Rates Occupancy 80% 87.5% 78% $10.00 84.2% 76% 80.8% 74% $5.00 77.0% 76.7% 72% 70% $0.00 2002 2003 2004 2005 Q4 2006 Occupancy Rental Rates Source: Colliers Oxford Commercial Overall Office Rental Rates Against Occupancy (Class A) 100% $30.00 $26.19 90% $25.00 $22.75 80% $21.46 $20.33 70% $18.84 $20.00 60% Rental Rates Occupancy 50% $15.00 89.1% 85.1% 80.3% 40% 73.2% 71.6% $10.00 30% 20% $5.00 10% 0% $0.00 2002 2003 2004 2005 Q4 2006 Occupancy Rental Rates Source: Colliers Oxford Commercial - 32 -
  • 36. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Overall Office Vacancy (All Classes) 9,000,000 8,000,000 1,417,838 7,000,000 2,840,764 760,357 6,000,000 860,704 Square Feet 5,000,000 750,565 4,000,000 7,054,647 6,202,948 3,000,000 5,486,069 4,984,062 2,000,000 3,872,209 1,000,000 0 2002 2003 2004 2005 Q4 2006 Direct Available Sublease Available Source: Colliers Oxford Commercial Overall Office Construction Against Absorption (All Classes) 2,500,000 1,900,514 2,000,000 1,500,000 1,214,853 1,157,594 1,081,403 1,000,000 Square Feet 595,486 444,849 500,000 61,200 0 0 -500,000 -1,000,000 -920,841 -1,196,803 -1,500,000 2002 2003 2004 2005 Q4 2006 Under Construction Office Absorption Source: Colliers Oxford Commercial - 33 -
  • 37. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Office Market Overview Concentration, Year-End 2006 CBD 25% Southeast 1% North 8% Southwest 18% South 4% Northwest Northeast 39% 5% Source: NAI Commercial Industrial Properties, The Source Cedar Park City Office Building Permits 2005* Cedar Park City Building Permit Office * 2006 data not available as of April 15, 2007. - 34 -
  • 38. Real Estate Center Market Overview 2007 Austin-Round Rock, TX San Marcos City Office Building Permits 2005* San Marcos City Building Permit Office * 2006 data not available as of April 15, 2007. Austin City Office Building Permits 2005* Austin City Building Permit Office * 2006 data not available as of April 15, 2007. - 35 -
  • 39. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Austin-Round Rock Market Overview 2007 Industrial 2006 Year-End Industrial Geographical Sector & Building Use Office/Bulk/Manufacturing/Warehouse Flex/R&D Existing Under Existing Sq. Current Vacancy Under Current Vacancy Sq. Ft. Constr.* Ft. Constr.* Submarket (in percent) (in percent) Round Rock 2,019,277 13 124,500 691,264 48 56,000 North 8,100,221 12 0 5,849,752 13 0 Northeast 3,556,058 3 56,700 2,315,943 14 0 East 1,357,320 8 0 0 0 0 Southeast 3,582,829 7 226,400 3,665,598 18 0 South 1,869,334 11 0 188,277 3 15,400 Total 20,485,039 9 407,600 12,710,834 16 71,400 *Scheduled or under construction Source: NAI Commercial Industrial Properties Co. The Source Current Six-Month Industrial Absorption Submarket Flex/R&D Manuf/Warehouse Total Round Rock 37,941 (8,931) 29,010 North 443,821 79,112 522,933 Northeast 77,380 347,292 424,672 East 0 (7,479) (7,479) Southeast 49,102 40,925 90,027 South (2,048) 43,046 40,998 Total 606,196 493,965 1,100,161 Source: NAI Commercial Industrial Properties Co. The Source, Dec-2006 Average Industrial Rental Rates per Sq. Ft.* Annual Monthly Flex / R&D $7.80 - $10.20 $0.65 - $0.85 Bulk Warehouse $4.32 - $6.24 $0.36 - $0.52 Office Warehouse $5.04 - $6.96 $0.42 - $0.58 Manufacturing Whse. $5.04 - $7.44 $0.42 - $0.62 *Based on direct lease rates. Rates quoted on a triple net basis. Source: NAI Commercial Industrial Properties Co. The Source - 36 -
  • 40. Real Estate Center Market Overview 2007 Austin-Round Rock, TX Industrial Market Concentration of Space, Year-End 2006 South Round Rock 6% 8% Southeast 22% North East 42% 4% Northeast 18% Source: NAI Commercial Industrial Properties, The Source San Marcos City Industrial Building Permits 2005* San Marcos City Building Permit Office * 2006 data not available as of April 15, 2007. - 37 -
  • 41. This annual report is created free of charge by the Real Estate Center at Texas A&M University. We strive to provide the most accurate, up-to-date, and insightful data to paint a detailed picture of Texas’ Metropolitan Statistical Areas. However, links contained in this report may change in time and become obsolete. The Real Estate Center advises to contact the original source if any of the links are found to be broken. The Center also provides numerous publications, resources, and data on building permits, employment, population, and home sales at http://recenter.tamu.edu. For the latest daily news visit http://recenter.tamu.edu/mnews/mnsearch.asp?AID=3. Report compiled by: Administrative Coordinator Edith Craig Real Estate / Market Research Analyst Dr. Isilay Civan Database Support Blake Lacy Real Estate Center, 2115 TAMU, College Station, TX 77843-2115 Phone: 979.845.2031 | Fax: 979.845.0460