The office situation is being tremendously blown out of proportion, but that’s what grabs headlines.
At the end of the day I expect about a 15-20% reduction in a company’s office footprint, on average, nationally.
Multi-family in the core in Austin is fine. There aren’t many trades right now as landlords are having to fill vacancy from terminating short term rental companies, and quiet frankly they are sitting in very good position with no motivation to sell on slightly less NOI, even in a time of historically low cap rates. Those vacancies will be filled in the next 12 months, and those projects will transact at record prices.
The narrative that the sky is falling is not true for the sunbelt cities.
As soon as there are announcements regarding vaccines and timelines, you will see large office transactions occurring again. Companies are gathering information and kicking tires by the boat load, they just need some sort of guidance in regard to a timeline.
I say vote for the plan. I did.