WHY EAST AUSTIN IS THE CROWN JEWEL OF REAL ESTATE

I might be early but I am not wrong
— The Big Short Movie
 

As the owner and founder of Beck-Reit Commercial Real Estate, I’ve been a part of East Austin for over two decades. I’m proud to say that my company is the number one commercial brokerage in the area. We’ve been around long enough to know every nook and cranny of this side of town, and there’s no doubt about it—East Austin is where the action is.


A Deep Dive into East Austin’s History

Before we dive into the future, it’s crucial to understand where East Austin came from. The history of East Austin isn’t just an academic subject for me; it’s something I’ve lived, breathed, and studied for years. I made sure to highlight this during the panel because understanding this history is key to grasping the dynamics of the area today.

It all began with the 1928 Austin Master Plan, which intentionally segregated the city by pushing minorities east of I-35. This decision laid the groundwork for decades of marginalization and environmental challenges. As I pointed out during the panel, “East Austin was intentionally divided by the 1928 Master Plan, pushing minorities to one side and creating a division that would last for decades.”

Fast forward to the 1950s and 60s, when oil companies moved in, further damaging the environment. The area around Springdale Green had the second-highest cancer rate in the country, second only to Beaumont, Texas. It was grassroots organizations like Poder that fought to clean up the area. “Poder fought tooth and nail to get those oil tanks removed, and they succeeded, paving the way for what East Austin has become today,” I emphasized.

In the 1990s, the removal of the tanks and the relocation of Mueller Airport transformed East Austin into a developer’s playground. The environmental issues were addressed, and suddenly, you could see downtown from East Austin—or even walk there. That’s when I bought my first building on East 6th Street, three blocks east of I-35. “We bought our first building three blocks east of I-35 on East 6th. It’s where I office today,” I proudly shared.

This history isn’t just background noise; it’s the foundation that has shaped East Austin into the vibrant, dynamic community it is today. And as we move forward, it’s important to remember where we came from so we can continue to grow with integrity and respect for the community!

Link to East History - https://beckreitcre.com/east-austin-history

  • One of the biggest game-changers for East Austin was the connector from downtown to the new airport. Suddenly, people were driving down 7th Street and seeing opportunities where they hadn’t before. Plaza Saltillo was another major catalyst for growth. This area, just east of downtown, started to spread out, and with it, the potential for development grew exponentially.

    East Austin’s housing stock is unique—small lots close to downtown but with larger lots further east. This variety allows for a range of developments, from single-family homes to large-scale commercial projects. And let’s not forget the affordability. Pre-COVID, East Austin had the second-highest office rent rates in the city, second only to downtown. That says a lot about the desirability of this area.

    But the story doesn’t stop there. The area continues to evolve, with new projects breaking ground that will further solidify East Austin’s status as a key player in the city’s growth. One such project is the 50,000 SF office building at 2422 East 7th Street, set to break ground in Fall 2024. This development is a partnership between myself and Mark Vornberg of Dick Clark Associates, and it’s set to become one of the most significant additions to the East Austin skyline.

    Mark and I have put our hearts and minds into this project, ensuring that it not only meets the needs of the modern office environment but also reflects the unique character of East Austin. The building will feature cutting-edge design elements while maintaining the authenticity that makes this area so special. As Mark pointed out during the panel, “This isn’t just another office building; it’s a statement. It’s about blending modernity with the rich history of East Austin, creating a space that people will be proud to work in.”

    The location at 2422 East 7th Street is no accident. It’s strategically positioned to take full advantage of the growth corridor that has been established by the connector and the ongoing development around Plaza Saltillo. This project is not just about filling a need for office space; it’s about continuing the tradition of thoughtful, impactful development in East Austin.

    When it’s completed, this office building will stand as a testament to what’s possible when you combine vision, experience, and a deep love for the community. It’s projects like these that will keep East Austin at the forefront of Austin’s growth, ensuring that this part of town continues to thrive for years to come.

    Link to building / project - https://beckreitcre.com/all-projects/2422-east-7th-austin


  • Investors are drawn to East Austin for several reasons:

    Demographics The area is home to a diverse and dynamic population. You’ve got your hipsters, your artists, and yes, even the tech crowd. These aren’t just people looking for cheap rent; they have money and they want to spend it in a place that feels authentic and connected to the city’s roots.

    Market Trends East Austin has become a hub for retail, office, and residential developments. The demand is there, and it’s not slowing down. From I-35 to Airport Blvd, the growth is spreading, and with it, the opportunities for savvy investors.

    The Tesla Effect With Tesla setting up shop in nearby Travis County, land values have tripled in some areas. This is a major driver of growth, and it’s pushing development even further east.

    Douglas Gilliland, President of Taurus of Texas, emphasized the importance of this growth corridor, saying, “SH 130 was a real motivator for us. You can get to employment centers, the airport, and downtown very easily.” He went on to describe East Austin as “the last great frontier of the Austin area,” underscoring its potential for uninhibited growth.

  • East Austin is special, and it’s our job as developers and community members to keep it that way. Authenticity is the name of the game. This isn’t just about throwing up new buildings and hoping for the best. It’s about working with local communities, understanding their needs, and preserving the character that makes East Austin so unique.

    During the panel, Mark Vornberg, Principal at Dick Clark Associates, shared his experience in gaining neighborhood approval for his boutique hotel. “You have to get in the trenches and really sell yourself as a developer to work in East Austin,” he said. I couldn’t agree more. I had to do the same when I worked with neighborhood groups to get the zoning changes I needed. It wasn’t easy—there was a lot of skepticism and a lot of door-knocking. But in the end, it was worth it because we were able to create something that the community could be proud of.

    Scott Ginder, Co-Founder of ForgeCraft Architecture and Design, added, “Authenticity is crucial. We need to participate with the neighborhoods. The projects are richer because of it.” This authenticity, combined with a respect for the area’s history, is what makes East Austin such a compelling place to live and work

  • When we talk about the future of East Austin, we can’t ignore the role of infrastructure, particularly the massive plans TXDOT has for I-35. This project is set to reshape not just East Austin but the entire city. During the panel, I didn’t hold back my thoughts on the subject: “If the City of Austin or Travis County is standing in their way, that is just stupidity. Period.”

    The expansion of I-35 is a necessity, not a luxury. “We’ve got to expand the road, and really, if you think about everything that comes up from Mexico, it travels down I-35,” I pointed out. TXDOT has the funds, and they’re ready to spend them. The project will significantly improve connectivity between East Austin and downtown, but it will require cooperation from local governments.

    “Will it connect East Austin and downtown? It should,” I said, emphasizing the potential benefits of the project. However, there’s a catch: the City of Austin needs to come up with the funds to cap the highway and create a park similar to the one in Dallas. “TxDOT has said, ‘Great, you just have to show up with the money next December.’ So, 12 months—they’ve got to come up with the money.”

    This project isn’t just about roads; it’s about the future of how we live, work, and connect in this city. A successful expansion and capping of I-35 could transform East Austin into an even more desirable location, linking it seamlessly with downtown and making it an even greater hub of activity and growth.

  • Sustainability isn’t just a buzzword—it’s a necessity. East Austin is leading the way in creating sustainable communities that are good for the environment and the people who live here. Take Whisper Valley, for example, the largest zero-energy-capable community in the U.S. right here in East Austin. Every house combines solar energy with a geothermal grid system, making it possible for homes to be net-zero energy capable.

    But it’s not just about the energy side of sustainability; it’s about creating communities that are built to last. We’re talking about healthy living environments, smart building practices, and ensuring that the infrastructure can support the growth we’re seeing. Schools are another big piece of the puzzle. East Austin is seeing rapid changes in its school systems, with new state-of-the-art facilities being built to serve the growing population.


  • While East Austin is a hub of growth and opportunity, it’s not all sunshine and roses. Affordability is a major concern. The area may have once been known for its affordable housing, but those days are largely behind us. Today, if you’re looking for a deal in East Austin, you’re about 10 years too late. That said, there are still opportunities to be had, especially in the realm of affordable housing projects.

    Organizations like the Guadalupe Neighborhood Development Corporation (GNDC) are doing incredible work to ensure that long-time residents can stay in their homes. And developers like myself are working to create affordable options within the framework of larger projects. For example, we developed the first net-zero-capable neighborhood in Texas back in 2006, which included 14 affordable homes.



The Road Ahead

East Austin is just getting started. We are on the cusp of something big, and the best is yet to come. With projects like our 50,000 SF office building on East 7th set to break ground in Fall 2025, we’re laying the groundwork for the next phase of growth in this incredible part of the city.

So if you haven’t been to East Austin lately, it’s time to come check it out. Join me for coffee at the East Austin Hotel every other Friday, and I’ll show you around. You won’t believe your eyes.

At Beck-Reit Commercial Real Estate, we are at the forefront of interpreting these trends and offering strategic insights that not only anticipate market shifts but also create value through innovative real estate solutions. Our commitment to enhancing urban environments remains steadfast as we continue to explore and execute on these opportunities.

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