In addition to having a strong rental market that investors are attracted to and a low unemployment rate, Austin’s commercial real estate sector is very strong and attracting investors, Culturemap reports.
Austin nabbed the 23rd spot on JLL’s 2017 Investment Intensity Index, beating out international powerhouses like Hong Kong, Tokyo, and Toronto. The index looks at commercial real estate investment over the past three years to determine the speed at which a market is growing.
JLL singles out Austin and other metros on the smaller end for their ability to do even better than some of the internationally renowned cities for investment. Austin’s Gross Domestic Product (GDP) from 2014-2016 was $113 billion and the commercial real estate investment during the same period was $9.5 billion, which gives the city an “investment intensity” of 8.5 percent. Pretty impressive when you factor in that New York’s investment intensity is 10.6 percent.
The Investment Intensity index examines real estate investment in retail, office, hotel, and logistics. Austin’s strong tech sector and large millennial workforce is attracting investors from around the world. The absence of a state or local income tax also makes Austin and Texas more attractive to those from around the world looking to put their money in new places.