East Austin Growth Summit | Austin Business Journal

In the dynamic heart of Texas, where the commercial real estate sector thrives with continuous growth and innovation, DeLea Becker emerges as a prominent figure, a pillar of knowledge and foresight in the ever-evolving landscape of East Austin. With a storied career that spans decades, DeLea has not only shaped her destiny but has also left an indelible mark on the commercial real estate sector. The EAST Growth Summit , the first held by the Austin Business Journal, was informative, delivering an enormous wealth of knowledge to its attendees and emphasizing the transformative changes occurring East of Austin.

East Austin: Growth and Opportunity

East Austin is undergoing a monumental transformation that epitomizes urban renewal and economic rejuvenation. I had the honor of speaking as a panelist at the recent East Austin Growth Summit, where we delved into the myriad developments reshaping this vibrant area. This comprehensive recap of our hour-long discussion will explore the substantial economic impacts, burgeoning infrastructure projects, and the robust community spirit that define East Austin today.

Tesla's Transformative Presence

The summit commenced with an insightful presentation by Colin Pope, who detailed Tesla's expanding footprint in East Austin. He highlighted the construction of Tesla's gigafactory, which despite recent layoffs, continues to be a hub of activity and investment. "Just about three years ago, this was all just dirt, and look at this. Tesla is still building like crazy... despite the layoffs earlier this week," Pope stated, underscoring the significant economic impact of such a large-scale operation. Tesla not only bolsters local employment but also stimulates the economy through its extensive network of suppliers and service providers, cementing its role as a cornerstone of the local economy.

The Wider Economic Ripple Effects

During the panel, I shared insights into how Tesla's presence is a catalyst for broader economic developments. "I've been in East Austin longer than I've been in any other community in my life... It really is home to me," I remarked, highlighting the deep personal connections many residents have with the area. The transformation from a largely industrial zone to a thriving urban sector illustrates East Austin's potential for growth and renewal, fueled by both new industries and revitalized old spaces.

Infrastructure and Community Development

The discussion also covered the extensive infrastructure projects poised to inject new life into East Austin. Developments such as the Velocity neighborhood and the redevelopment of the former Tokyo Electron site are set to provide substantial residential and commercial spaces. These projects are designed not only to boost local growth but also to enhance community amenities, ensuring East Austin remains a vibrant place to live and work. "Velocity will add thousands of homes, retail space, hotels, and about 100 acres of green space in Southeast Austin," Pope detailed, highlighting the project's scale and community focus.

Sustainable Growth and Green Spaces

Balancing industrial expansion with sustainability and access to public amenities is crucial for maintaining the area's livability. The panel discussed efforts to integrate green spaces and ensure public access to improved community facilities. Pete Dwyer highlighted new public parks and residential developments that conscientiously integrate with the local ecosystem, ensuring that East Austin remains a desirable place for future generations.

Navigating Economic Fluctuations

Pope touched on the broader economic shifts affecting the tech industry and their localized impact on East Austin. Despite the challenges posed by layoffs, the foundation Tesla has built in the area appears robust. "It's a pretty safe bet that more than 21,000 people still clock in there...," Pope reassured, indicating the enduring nature of Tesla's commitment to the region.

Educational Impacts and Workforce Development

Dr. Annette Tielle from Del Valle ISD provided insights into the educational implications of East Austin's growth. Known as the "Tesla effect," this phenomenon extends beyond economics to educational opportunities for local youth. With new educational facilities on the horizon and a surge in residential construction, the area is on the cusp of a population boom that will catalyze further development. "There is huge growth happening right now in the Del Valle area," Tielle noted, emphasizing the interconnected growth of education and local economics.

Future Prospects and Strategic Developments

Looking ahead, the potential for East Austin is boundless with ongoing investments in infrastructure and community facilities. I discussed the strategic importance of developments like the I-35 expansion, which is set to enhance connectivity and mobility, further boosting the area's appeal. "Texas is growing. It is exploding, right? And we need to accommodate that growth with appropriate infrastructure," I reflected, stressing the need for strategic planning to sustain growth.

The East Growth Summit provided a comprehensive overview of the area's rapid development and its potential trajectory. As East Austin continues to evolve, it stands as a testament to the dynamic potential of urban transformation, promising to remain a beacon of opportunity and growth in Texas.


SUMMIT RECAP

The EAST GROWTH SUMMIT event and panel discussion in April 2024 provided insights into the history of east austin, the explosive growth in development, business, jobs, schools, infastructure, roads, and the area growth trends that are jaw-droppping.

COLIN POPE, AUSTIN BUSINESS JOURNAL EDITOR

At the inaugural East Growth Summit, Colin Pope of the Austin Business Journal, illuminated the remarkable transformation of East Austin's economic landscape. Pope highlighted the rapid expansion and economic impact of giants like Tesla, SpaceX, and the booming real estate developments reshaping the area.

Key Points:

Tesla’s Giga Texas and surrounding facilities directly employ over 21,000 people, with the possibility of hitting 84,000 jobs considering suppliers and future growth.

Tesla, facing sluggish sales, recently cut about 10% of its Austin workforce, creating a ripple of concern and lawsuits from laid-off employees.

SpaceX and The Boring Company, also Musk-led ventures, are burgeoning forces in East Austin, contributing significantly to job growth and economic activity.

  • Names like Webberville and Manor use to be heard in news room at ABJ a couple of times a year, now heard weekly if not daily.

Real estate developments like the Velocity neighborhood and Colony Park are set to introduce a mix of residential, retail, and green spaces, further altering the region's dynamics.

Endeavors like the Green Park Airport and Emerald Island promise visionary multi-billion-dollar investments focused on tech, entertainment, and housing on thousands of acres.

Pope warned of the risks of economic concentration, as the city's dependence on a single corporation like Tesla could be precarious.

The construction of large industrial spaces is ongoing, with significant projects like the Manor Downs horse racetrack redevelopment indicating a shift in land use.

  • H-E-B, current largest private employer in area at 23,000 employees maintains stability and consistent growth, unaffected by the volatility seen in the electric car sector. It represents a contrast to Tesla, whose fortunes can swing with a tweet and now is 2nd largest private employer in central texas at 21,000 employees

Public spaces and amenities are also part of the development wave, with a new park that could rival Zilker Park in size and community value.

Pope underscores the shift in East Austin's narrative from occasional news to a hub of continuous, groundbreaking development activity.

While the summit covered many projects, Pope hinted at even more developments on the horizon that could redefine East Austin’s future.

PANEL

Cody Baird: "I have the great privilege of getting to moderate this panel, a very visionary group of interesting developers and folks helping to change the face of the city of Austin..."

WHY EAST AUSTIN

DeLea Becker | Queen of East Austin

  • Rich History - Historical Significance: Acknowledged the area's difficult past and the removal of tank farms and Lueller airport as a pivotal points for redevelopment of the area which spurred the rapid gentorfcation..

  • Location allure: Emphasized the proximity to downtown as a strong draw for development. Vibrant and lively community where Austin still “Keeps It Weird”

  • Why she chose to invest, develop, and headquarter businesses there in 2006

    "When we walked out the front door and turn left, we could see downtown. We can walk there. We said -This will be good someday."

“Could you speak specifically to the growth that Del Valle ISD is experiencing?”

Dr. Annette Tielle | Del Valle Education Beacon

  • Educational growth: Highlighted the significant rise in residential planning, with a large number of homes and multifamily units.

  • "Tesla effect": Credited Tesla for spurring regional growth and fostering additional business.

    "We need to look at demographic reports...so that we ensure the safety and security of the students, but also that we can provide them that academic foundation."

"Could you explain the 'Tesla effect' and how it's driven the economy in East Austin? Has there been a similar effect from Samsung or other companies that have invested in the area?"

Davis Bass “Heavey Hitter"

  • Impact of Tesla: Confirmed the substantial economic influence of Tesla and its vast spread.

  • Industrial space: Noted the critical role of industrial space in supporting this growth.

    "The impact of Tesla Announcement...cannot be understated...prices jumped through the roof."

Can you tell us a little bit about the history of East Austin?

Pete Dwyer - Senior Statesman of Manor

- Historical context: Provided an extensive historical overview of development trends in Austin.

- Infrastructure focus: Discussed the significance of water and wastewater management for growth.

"No matter where development takes place, it always takes decades."

DeLea Becker on Office Market:

- Characterized East Austin as hip and diverse, attracting businesses.

- Walkability: Stressed the convenience and built-in amenities for businesses and residents.

"It is so hip... the most diverse area in Austin, Texas... that employees and employers really feel comfortable here."

Davis Bass on Investment Landscape:

- Growth dynamics: Indicated that East Austin growth is heavily influenced by vendors of Tesla.

- Workforce concern: Suggested that labor is a significant issue, requiring dedicated training.

"The markets have been robust...all the markets."

Pete Dwyer on Utilities:

- Water scarcity: Discussed challenges around water and the innovative solutions being pursued.

- Long-term planning: Emphasized the need for future-proofing infrastructure.

"Everywhere in our central Texas region and beyond is scarred for water."

Pete Dwyer on Houses Coming -details for a total of 15,900 housing units across these developments:

  • Shadow Glenn** - "3500 single family units and 2000 multifamily units."

  • Presidential Meadows** - "1400 single family units."

  • Presidential Glenn** - "1700 single family units."

  • Wild Horse** - "2200 single family units and 2500 multifamily units."

  • Lavos** - "1500 single family units and 1100 multifamily units."

Panelists on Future of East Austin:

DeLea Becker: Predicted CONTINUED substantial growth and investment, especially in transportation infrastructure.

Dr. Annette Tielle: Focused on the promise of Del Valle's students and their future contribution to the workforce.

Davis Bass: Expressed optimism, particularly due to available land and investment in residential spaces.

Pete Dwyer: Foresees continued residential development and retail expansion driven by population growth.


DeLea Becker’s Perspectives on East Austin's Evolution

About East Austin CURRENT DevelopmentS: "This summer, we're breaking ground on a 48,000 square foot office and retail building on East 7th near Weberville. This is the latest in our series of projects in East Austin, which also includes an RV park."

On Development Strategy: "Our strategy typically involves purchasing properties and then utilizing them ourselves... We handle all the construction in-house, thereby minimizing risk. I strategically invest in areas where I foresee growth."

Historical Context and Development Dynamics: "East Austin has a rich history, particularly marked by the phase-out of numerous toxic industries. This clearance paved the way for developers, predominantly smaller ones like myself, to innovate and rebuild."

Local Insight and Decision-Making: "My predictions are rooted in deep local knowledge—I live here, work here, invest here, and am an active community member. This hands-on experience gives me a unique edge in foreseeing developmental changes."

Utilization of Technology and Data: "While technology is invaluable, my approach relies less on generic metrics like traffic counts, which I use more for marketing. Instead, I focus on significant investments by state, county, and city governments to gauge where the developmental momentum is heading."

  • The DeLea Becker Difference

What sets DeLea apart is not just her unrivaled expertise and success in commercial real estate but her approach to sharing her knowledge, experiences, and insights. Following her participation in the East Growth Summit, DeLea Becker's combination of deep expertise and decades of experience in East Austin's commercial real estate market was prominently showcased. Known not just for her unparalleled knowledge but also for her approach to disseminating informaion, DeLea's contributions were a highlight of the event.

The insights DeLea shared at the summit went beyond mere tidbits and stats. Her extensive involvement in East Austin not only reinforced her status as a thought leader and innovator but also solidified her reputation as a trusted guide for those looking EAST for growth of their company, developments and real estate holdings. Her formidable advocacy and detailed observations provided attendees with invaluable perspectives, cementing her position as one of the most valuable voices in commercial real estate today.

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