At the beginning of the pandemic, Austin’s economy was looking grim as businesses were forced to close and one of the city’s biggest economic boosters, the South by Southwest festival, was canceled.
However, one year later, optimism has once again emerged as commercial real estate investments continue to grow and corporations relocate to the city.
“It’s the hottest market in the country right now,” said Mike McDonald, vice chairman at Cushman & Wakefield. “Millennials are moving to the Sun Belt, and companies are following the millennials. Investors are following the companies.”
In fact, CBRE states that Austin has displaced Greater Los Angeles as the number one market for commercial real estate investments because of its resiliency in the labor market.
The pandemic led to a net loss of 33,400 jobs in the city’s metro area, but as new companies continue to migrate into the area, the city has been able to mitigate the loss better than others.
In fact, a record 22,114 jobs were attributed to companies expanding or moving into the city last year.
Tech giants, such as Apple and Facebook, have flocked to Austin for its lower costs of living and thriving technology-driven culture.
Even other areas as part of the Sun Belt have felt an economic boom from the city, with the Dallas-Fort Worth area ranking second in CBRE’s investment survey.