Meta Goes Mega on Texas Office Space

Meta Platforms is making a splash in downtown Austin.

The company, formerly known as Facebook, leased all the office space in the Sixth and Guadalupe building, which will be the tallest tower in the Texas capital, according to the Austin Business Journal. It rented 589,000 square feet across 33 floors in the building, which is under construction at 400 West Sixth Street.

Rising 875 feet, the 66-story tower will be the first Austin high-rise with a total of a million square feet. In addition to offices, it will have 349 residential units on the 34th to 66th floors and 10,000 square feet of retail space. Construction on the commercial portion of the building was finished in late 2021. The building is expected to be complete in 2023.

The company sealed the deal Dec. 31. It’s the second-largest office lease in downtown Austin, according to ABJ. Google has leased a high-rise with 723,000 rentable square feet that’s under construction at 601 West Second Street. Click to read more at www.therealdeal.com.

As Rents Rise, Investors Flock to San Antonio’s Red-Hot Apartment Market

San Antonio apartments are being swapped in a flurry of trades, as outside investors pour into the city to take advantage of market conditions created in part by the pandemic.

More than 14% of all San Antonio apartments traded hands last year, a share greater than any city in the state and any city nationally except for Atlanta, according to a December report from CoStar, a real estate analytics firm. Those deals were worth a total of $3.6 billion in 2021, marking a near doubling over the transaction volume for 2019, before the pandemic.

“There’s a lot of investor confidence in San Antonio,” said Daniel Khalil, one of the report’s authors. “It’s not just because of good prices, or because it’s this [capitalization] rate, or that much per door. They’re also buying it because they see the growth prospects in the city, and because they see the economic resiliency of a city like this.” Click to read more at www.sanantonioreport.com.

Samsung’s Property Tax Break in Taylor, TX Chip Plant

Why would Samsung choose Taylor, Texas as its location? There are two important factors to consider: Not only will the business receive a significant property tax break, but the deal is sure to create an abundance of lucrative jobs in Travis and Williamson County. Given the massive shortage of computer chips recently, it is good news that a new plant is being built. Hopefully, the $17 billion facility will help alleviate some of the community’s concerns.

The Details of the Property Tax Decision & Performance-Based Agreements in Williamson County

Recently, commissioners in Williamson County held a meeting with Samsung to reach an agreement surrounding tax breaks and incentives. Ad valorem taxes will be decided using a performance-based agreement in accordance with a newly approved Chapter 381 regulation. Samsung will pay 90 percent of ad valorem taxes during the initial decade of the agreement. Then, the county will grant 85 percent of ad valorem taxes paid by Samsung the following decade.

So, what exactly are the performance incentives that Samsung has to meet? The tax breaks are contingent upon Samsung constructing at least six million square feet in facilities by the end of January 2026. This must be followed by the creation of 1,800 full-time jobs. In exchange, Williamson County agreed to improve targeted roads around the facility to make life easier for the technology giant.

Other Tax Breaks Coming from Taylor ISD

Although Samsung will receive a large number of tax breaks from Williamson County, there is also an incentive deal with Taylor ISD. While the specifics of the agreement are still pending it appears that Samsung will receive more than $300 million in tax breaks during the next ten years. In exchange for the massive tax breaks, the community is getting a lot of lucrative jobs that are sorely needed. Click to read more at www.keatax.com.

Newmark Announces Sale of Newly Constructed, Federally-Occupied Medical Asset in San Antonio

San Antonio, TX (Dec. 27, 2021) — Newmark announces the sale of the San Antonio Community Based Outpatient Clinic, a Class A, built-to-suit, federally occupied building located at 9939 State Highway 151 in San Antonio, Texas. The newly completed, 226,148-square-foot property is 100% leased to the Department of Veterans Affairs (“VA”) on a long-term basis.

Newmark Vice Chairmen Gary Carr, Robert Hill and Chris Murphy represented the seller, US Federal Properties Co. (USFP).

Designed to achieve Green Globe certification, the three-story, best-in-class medical asset features modern design, efficient floor plans and abundant on-site parking. The outpatient center is ideally situated between Loop 1604 and Interstate 410 in Northwest San Antonio.

“The new San Antonio VA clinic will serve the community at a centralized location, consolidating existing services from multiple clinics. The location in an expanding and developing area with access to major employment centers made this an ideal location for the VA’s new center,” said Carr. “We look forward to seeing this asset and the community it serves flourish.”

The property is proximate to three licensed hospitals and two planned hospital development sites. With one of the largest concentrations of military bases in the U.S. —Fort Sam Houston, Lackland Air Force Base and Randolph Air Force Base are all within 30 minutes—San Antonio is known as “Military City USA.”

The San Antonio Community Based Outpatient Center is part of a 10-building portfolio comprising nine community-based outpatient centers and one mental health clinic, located across the U.S.

Merit Commercial Real Estate Sees Room for Growth in San Antonio Office Market

SAN ANTONIO, Dec. 22, 2021 /PRNewswire/ — On November 30, Merit Commercial Real Estate closed on the acquisition of University Park Tech Center I & II, a two-building office project containing approximately 200,000 square feet. Clarion Partners, a New York-based real estate investor was the seller. The acquisition represents Merit’s first substantial investment in the San Antonio office market.

“The San Antonio office market has remained exceptionally strong by comparison to other major cities”, noted Ryan Harrison, CEO of Merit Commercial Real Estate. “We saw strong demand for this type of building in the northwest submarket from the tenants we represent, which led us to this acquisition”, stated Mike Sawtelle, EVP tenant representation broker for Merit and long-time mover-and-shaker in the San Antonio office market.

Many Fortune 500 companies across the country had plans to bring their workforce back into the office this fall, only to postpone those plans. Now, major cities are seeing companies change strategies and implement a hybrid or fully remote style of working. In contrast, the majority of San Antonio companies have seen continued interest in returning to the workplace. Click to read more at www.inforney.com.

Bowman Expands Texas Operations Through Acquisition of Houston and San Antonio Based Terra Associates, Inc.

Bowman Consulting Group Ltd. (the “Company” or “Bowman”) (NASDAQ: BWMN), today announced it had entered into a definitive purchase agreement for the acquisition of Terra Associates, Inc. (“Terra”). Closing is scheduled to occur on December 31, 2021, subject to customary closing conditions. Headquartered in Houston, Texas, Terra delivers civil design and engineering solutions to clients focused on traffic and transportation planning, water-wastewater solutions, landscape and irrigation systems, office and industrial facilities, and multi-family development. Under the continuing leadership of Vickie Henkel, Terra’s staff of 30+ professionals work from offices in Houston and San Antonio for both public and private sector clients. In connection with their water-wastewater practice, Terra serves in the role of District Engineer for several Texas-based Municipal Utility Districts (MUDs).

“Terra is a company with a forty-year heritage of serving eastern Texas,” said Gary Bowman, CEO of Bowman. “The leadership of Terra has surrounded themselves with a team of committed and energetic professionals who will all be great additions to Bowman. We have been intent on growing our Texas operations and this acquisition, following closely on the heels of our acquisition of 1519 Surveying, fortifies Bowman’s presence in the Lone Star state. Terra’s experience in commercial site work, transportation design and utility district services are highly complementary to our portfolio of services and align with our growth plans and evolving market demand. I am pleased to welcome everyone at Terra to Bowman and I am excited about the potential for our future together.”

“Choosing to join Bowman was an easy decision,” said Vickie Henkel, CEO of Terra. “Bowman’s approach to growth is very exciting to all of us at Terra. We’ve gotten to know the leadership at Bowman over the course of the acquisition process and we all feel very comfortable with the decision. Their commitment to helping our leadership and staff grow without changing the core of who we are is a big part of what makes us excited about this opportunity. The opportunity to be a part of an entrepreneurial public company is both exciting and energizing. We are all looking forward to the future as a Bowman company.” Click to read more at www.valdostadailytimes.com.