Quote:
Originally Posted by Azul
Everything announced at this point should be green lighted and be practically ready to go as far as development. If anything were to be cut in the Austin area I'd imagine it'd be this project or the Travis though I'd think they'd secured financing by now and be well into the design/engineering phases right now.
I wouldn't expect any new major developments until 2020-21 as everything I'm hearing on the development end is leading me to believe interest rates will continue to go up and signal a national decline in high to mid risk projects. Austin is still a good investment and won't suffer, most likely, but I can't imagine we see much anything over 500'+ in the next 2 years unless things change. Maybe I'm wrong though.
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I would tend to agree with you a bit. We are entering a new cycle right now. However, any new tower will not be restricted by height. Should a development company receive enough pre-leasing or sales contracts he/she could build a 1000'+ tower. Additionally, if company has a good development background, financing may be more challenging to obtain, but, not difficult enough to push back a project by 1-2 years.
We are not in a recession yet...but, one is coming. How deep and who it will affect is not 100% clear at this point.
**If I may suggest - should we want to continue this conversation regarding a potential recession (or difficulties in obtaining financing in general), we open up a new thread and not bog this one down.**