Developer Doug Launius said he knew 10 years ago that Southeast Austin was a place to invest: it's close to downtown and the airport; the land is relatively affordable; it is served by three major roadways—SH 71, SH 130 and FM 973; and the rolling hills are beautiful.
"It really is much closer [to Central Austin] than most people think," said Launius, principal of the Southeast Austin-focused development firm Marketplace Real Estate.
Marketplace owns some 900 acres in the area, including the site of a forthcoming 7-million-square-foot mixed-use development called Velocity, which is about a mile away from the site of Tesla's recently announced $1.1 billion Gigafactory.
Launius welcomes its arrival, which a local industry expert said will speed development—and the growth of property value—in the area.
"Tesla opening their factory … is going to accelerate the growth in the area and help us bring the services, the grocery stores, and all the things that we want to do to the area more quickly," he said.
(The above map shows the approximate sites of the Austin Green (north) and Velocity (south) developments. The blue marker is near the entrance to the Tesla site.)
The area southeast of Austin began developing over the last five to seven years for a number of reasons, including rising property costs within the city limits and the construction of SH 130, which improved mobility in the area, said Eldon Rude, principal of the local consulting firm 360 Real Estate Analytics.
"A lot of it has to do with its proximity to Austin, relative to some other suburban areas, and the ability to buy land, develop and build homes that are affordable, if you will, for first-time and first move-up homebuyers," he said.
This growth includes Velocity, which plans to build 2,683 units of multifamily housing, 2.9 million square feet of office space and 42 acres of parks; H-E-B, which bought 16 acres in the development in 2016; and Austin Community College, which owns 124 acres adjacent to the development and plans to build a regional workforce center.
There is also the Austin Green development, from the local development firm GroundWork, which began the process of securing City Council approval for the 2,100-acre project earlier this year. As proposed, it would include 12,000 residential units as well as retail, office, industrial, medical and park space—and now, with Elon Musk's announcement last week, the Tesla factory.
The Tesla effect
Rude expects the factory to further development in the area, as a new workforce—first the construction workers who build the factory and then the employees who work there—drives up demand for housing and other services. Tesla's suppliers may also move to the region, compounding the effect.
This will likely affect the area's affordability, Rude said, and prompt more investment, such as an expansion of DVISD and the arrival of big-box stores.
For Launius, Tesla's arrival is proof of the area's appeal. "We say it's like throwing gas on the fire. The fire was already burning out there pretty strong, and then Tesla comes [and] announces," he said. "I think it's only going to be beneficial for Southeast Austin and Del Valle."
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Show your love for Tito's and for the community this year with a wide selection of not that ugly, uglyish, ugly, uglier, and ugliest holiday sweaters.
There's lots choose from, and plenty of accessories like scarves and socks, plus gear for your dog, too.
All of the items can be purchased online or at the Love, Tito’s Retail Store in Austin, TX. 100% of all net proceeds from online or in-store purchases go to one of the nonprofits we’ve teamed up with.
🗓 All weekend
Check out this highly anticipated art exhibition with illuminated art along Waller Creek. Tickets are free and the event includes food vendors, dazzling lights, live music, and hands-on activities
All weekend 6 p.m - 10 p.m | 📍Waterloo Park
This iconic holiday tradition lights up for the first time this holiday season starting this weekend! Reserve your spot for an enchanting light and sound performance, delicious hot cocoa, sweet treats, and some overall fun with your friends or family. The show runs till January 6th.
6 p.m and 9 p.m | 📍Mozart's Coffee Roasters - 3825 Lake Austin Blvd, Austin, TX 78703
This fitness event is free and open to the public. Get your morning started right with a "Fitness in the park" class for kickboxing! The class will be led by certified instructors and is a great way to get a cardio workout in while also honing your self-defense skills.
10 a.m - 11 a.m | 📍 Metz Park
Support local LBGTQ+ and female artists at this outdoor market with over 150 vendors. Get your holiday shopping out of the way at this event, with vendors for food trucks, handmade goods, raffles, hands on workshops and activities, and more.
Did someone say cheese?! If you're like me and always willing to get your hands on a bowl of mac and cheese, then this event is for you. Check out the Mac and Cheese festival happening this weekend to decide which vendor has. the best mac and cheese for yourself, and enjoy the bar with creative cocktails while you're at it. Tickets start at $45.
11 a.m - 3 p.m | 📍Lantana Place - 7415 Southwest Parkway