AUSTIN | Economic Development

[mumu]

Since we're all speculating, it's notable that Microsoft is also seriously crunched in Seattle by skyhigh housing costs. All of these major tech companies need to draw from similar labor markets and Amazon is creating a lot of headaches for Microsoft in the Seattle area. Amazon now has more employees in greater SEA than Microsoft and is planning large office growth in Bellevue, right next to Redmond.

The whole Riverside Corridor is primed for not just Project Catalyst but also the secondary effects that flow from it, especially with the Blue Line.

Thus, Microsoft might be the big sleeper waiting in the wings.

[StoOgE]

As a former finance guy: There just aren't enough people in Austin for someone like Schwab to become a major player.

Austin has been a hub of back-office operations jobs in finance for smaller companies only.

Schwab has a phone bank in North Austin. There are smaller players like NFP and Lion Street that are back-office ops jobs. There are a few fund families in town, DFA again is mostly the boring back-office stuff where the real power-players are in their California office.

Schwab is only in Austin because they bought out an old e-trading platform in the 90s and their HQ is destined for DFW.

Austin has a lot of VC money, but those are smaller boutique investment offices. And then you are talking pension funds that are again not big office counts.

Dallas and Houston are the financial capitals of Texas and unless Austin wants a bunch of 35-45K a year jobs like Tampa has it's not gonna be a major industry of expansion for the foreseeable future.

[AustinGoesVertical]

Originally Posted by StoOgE

As a former finance guy: There just aren't enough people in Austin for someone like Schwab to become a major player.

Austin has been a hub of back-office operations jobs in finance for smaller companies only.

Schwab has a phone bank in North Austin. There are smaller players like NFP and Lion Street that are back-office ops jobs. There are a few fund families in town, DFA again is mostly the boring back-office stuff where the real power-players are in their California office.

Schwab is only in Austin because they bought out an old e-trading platform in the 90s and their HQ is destined for DFW.

Austin has a lot of VC money, but those are smaller boutique investment offices. And then you are talking pension funds that are again not big office counts.

Dallas and Houston are the financial capitals of Texas and unless Austin wants a bunch of 35-45K a year jobs like Tampa has it's not gonna be a major industry of expansion for the foreseeable future.

I agree Austin doesn't fit the traditional ingredients that would be a prime spot for financial services. But I do think Austin has the tech ecosystem required for innovation and that the industry is beginning to adopt technology more than ever before. That's why I put them as a long shot -- #3 on my list, but well below Amazon/Salesforce. They're not likely to fit the bill for the HUGE employment/office alluded to in the rumor, but I am wondering if they could deploy a fin-tech team down here. Might not be an anchor tenant of a new building, but I could see them establishing some small footprint downtown with this focus in mind.

[lzppjb]

Originally Posted by mumu

Since we're all speculating, it's notable that Microsoft is also seriously crunched in Seattle by skyhigh housing costs. All of these major tech companies need to draw from similar labor markets and Amazon is creating a lot of headaches for Microsoft in the Seattle area. Amazon now has more employees in greater SEA than Microsoft and is planning large office growth in Bellevue, right next to Redmond.

The whole Riverside Corridor is primed for not just Project Catalyst but also the secondary effects that flow from it, especially with the Blue Line.

Thus, Microsoft might be the big sleeper waiting in the wings.

My first thought was Microsoft as well.

[AustinGoesVertical]

Originally Posted by lzppjb

My first thought was Microsoft as well.

Wow. Microsoft could very well be the answer. I didn't even include them in my thinking but it makes a ton of sense.

If I had to lay money on it though, I still think Amazon is #1. I think they were very interested in Austin as HQ2 but incentives were lacking. They're at the domain, but some massive amount of those 25K jobs targeted for NYC could come here. And if they do, I'm guessing a downtown campus.

Btw, we've broached it on here before but is Michael Dell just sticking to Round Rock. Is there no chance that they ever come downtown in any capacity.

[Austin1971]

Originally Posted by austingoesvertical

wow. Microsoft could very well be the answer. I didn't even include them in my thinking but it makes a ton of sense.

If i had to lay money on it though, i still think amazon is #1. I think they were very interested in austin as hq2 but incentives were lacking. They're at the domain, but some massive amount of those 25k jobs targeted for nyc could come here. And if they do, i'm guessing a downtown campus.

Btw, we've broached it on here before but is michael dell just sticking to round rock. Is there no chance that they ever come downtown in any capacity.

g

[zrx299]

Originally Posted by AustinGoesVertical

Btw, we've broached it on here before but is Michael Dell just sticking to Round Rock. Is there no chance that they ever come downtown in any capacity.

Zero chance of that happening. RR gives them a massive tax break every year. I don't recall the specifics but any kind of sales activity has to be done in Round Rock.

Also, they're already in "Austin" with that second campus at Tech Ridge/Parmer where they own multiple buildings.

[austlar1]

Originally Posted by zrx299

Zero chance of that happening. RR gives them a massive tax break every year. I don't recall the specifics but any kind of sales activity has to be done in Round Rock.

Also, they're already in "Austin" with that second campus at Tech Ridge/Parmer where they own multiple buildings.

Maybe somebody can provide more details. I seem to recall that Dell briefly had a small headquarters operation located near 360 and Bee Caves. I think this was in the late 1990s and only lasted for about a year. I guess the idea was that the location was close to Michael Dell's home and the homes of other top Dell execs. I seem to recollect that this small HQ operation quietly shut down and moved either to Round Rock or Parmer after a very brief period of time.

[hookem]

Originally Posted by austlar1

Maybe somebody can provide more details. I seem to recall that Dell briefly had a small headquarters operation located near 360 and Bee Caves. I think this was in the late 1990s and only lasted for about a year. I guess the idea was that the location was close to Michael Dell's home and the homes of other top Dell execs. I seem to recollect that this small HQ operation quietly shut down and moved either to Round Rock or Parmer after a very brief period of time.

I remember that. The company I worked for at the time had Dell as a client, and there were a couple of meetings at that location (not that I attended). As I recall it was closed when Dell had it's first financial crisis as a public company. It was not a good look for them.

Apple has also kept a location in Westlake, although I don't know if they recently have left. They were in an office building near Lost Creek and 360, then moved to the new office building across from the Granduca. But I'm not sure if their new campus announcement has meant consolidation.

[Tyrone Shoes]

Financial giant Citadel Securities picks Austin for tech hub

Global financial giant Citadel Securities has opened an Austin office that will serve as a research and innovation hub, the company said.

The Austin office provides access to “leading universities and an exceptional talent pool, which aligns with Citadel Securities’ focus on investing in top technology talent,” the firm said in a written statement.

Citadel Securities was founded by billionaire hedge fund manager Ken Griffin and is one of the world’s largest electronic trading firms.

It is building an Austin team that will include computer scientists, engineers and quantitative researchers.......

https://www.statesman.com/business/20200122/financial-giant-citadel-securities-picks-austin-for-tech-hub

[urbancore]

Originally Posted by Tyrone Shoes

Financial giant Citadel Securities picks Austin for tech hub

Global financial giant Citadel Securities has opened an Austin office that will serve as a research and innovation hub, the company said.

The Austin office provides access to “leading universities and an exceptional talent pool, which aligns with Citadel Securities’ focus on investing in top technology talent,” the firm said in a written statement.

Citadel Securities was founded by billionaire hedge fund manager Ken Griffin and is one of the world’s largest electronic trading firms.

It is building an Austin team that will include computer scientists, engineers and quantitative researchers.......

https://www.statesman.com/business/20200122/financial-giant-citadel-securities-picks-austin-for-tech-hub

weird no mention of the number of jobs....or where the office will locate.

[AusTxDevelopment]

Originally Posted by urbancore

weird no mention of the number of jobs....or where the office will locate.

Citadel is already in Austin. Their website lists their Austin address as the Westview building but that building doesn't list Citadel as a tenant. Westview does have a large WeWork location, however, which is probably where Citadel's Austin employees are located. Citadel's other US locations are Chicago and New York. Citadel Center in Chicago is their HQ, and the have 410,000 square feet in that building. The are at 350 Park in NY and they lease 33,000 square feet in that building.

[clubtokyo]

https://www.kvue.com/mobile/article/...c-8c64d0be39da

[GoldenBoot]

Originally Posted by clubtokyo

https://www.kvue.com/mobile/article/...c-8c64d0be39da

Funny you posted this. I just spoke with a close relative in the alcohol industry and he told me that Tito is working on something "huge." However, not even his close friends know exactly what it is. He's been extremely quiet about it.

[AustinGoesVertical]

Originally Posted by GoldenBoot

Funny you posted this. I just spoke with a close relative in the alcohol industry and he told me that Tito is working on something "huge." However, not even his close friends know exactly what it is. He's been extremely quiet about it.

I've actually heard specifics about this (assuming it's what your relative was told) and it would be an interesting thing for sure, but it shouldn't lead to much in the way of development. Tito's is 100% owned and licensed by Fifth Generation, Inc. which is entirely owned by Tito himself. Their corporate headcount isn't huge. I just don't see them needing a lot of office space square footage. Now maybe he could sell the brand to a conglomerate, but you'd wonder where it would office out of. He seems pretty content having sole ownership, but everyone wants liquidity in the brand's value beyond income at some point and that only happens through partial/complete acquisition or IPO. Not the "huge" thing I heard though.

Tangent: I don't know what the deal is with Deep Eddy Vodka but they've certainly been trying to masquerade themselves as a Tito's subsidiary. Some of it is just natural consumer confusion and association, but I've also heard they've been pulling some backhanded stunts when marketing it for distribution. Like saying it's related or selling ludicrous backstories. They even told one restaurant on 2nd street that Tito had sold the company and didn't even make it in Austin anymore and convinced them to switch to Deep Eddy because of that fact.

[Jdawgboy]

Originally Posted by AustinGoesVertical

I've actually heard specifics about this (assuming it's what your relative was told) and it would be an interesting thing for sure, but it shouldn't lead to much in the way of development. Tito's is 100% owned and licensed by Fifth Generation, Inc. which is entirely owned by Tito himself. Their corporate headcount isn't huge. I just don't see them needing a lot of office space square footage. Now maybe he could sell the brand to a conglomerate, but you'd wonder where it would office out of. He seems pretty content having sole ownership, but everyone wants liquidity in the brand's value beyond income at some point and that only happens through partial/complete acquisition or IPO. Not the "huge" thing I heard though.

Tangent: I don't know what the deal is with Deep Eddy Vodka but they've certainly been trying to masquerade themselves as a Tito's subsidiary. Some of it is just natural consumer confusion and association, but I've also heard they've been pulling some backhanded stunts when marketing it for distribution. Like saying it's related or selling ludicrous backstories. They even told one restaurant on 2nd street that Tito had sold the company and didn't even make it in Austin anymore and convinced them to switch to Deep Eddy because of that fact.

Now I know why a bartender on Rainey Street butted in as I was telling my cousin and his girlfriend who were visiting from NYC back in the summer about Tito's. The bartender went off that it was no longer in Austin, which made no sense considering it says Austin, Texas on the labels and billboards saying Austin's original Vodka.

It's no surprise to me that Austin has become a major
player in the alcoholic beverage industry. We also have a local Whiskey Still Austin and check out Dulce Vida Tequila too which is based here though obviously the Tequila is made in Mexico or it couldn't be called Tequila.

[Sigaven]

https://www.kxan.com/news/big-growth...n-report-says/

[urbancore]

update on my rumor......announcement coming next week.

This is a new source for me, so I really can't vouch for her yet. I really hope she's got this right.

Anyone else hearing anything? Bueller?

[LiveattheOasis]

Originally Posted by urbancore

update on my rumor......announcement coming next week.

This is a new source for me, so I really can't vouch for her yet. I really hope she's got this right.

Anyone else hearing anything? Bueller?

From down the road in Zilker, I've heard WeWork mentioned credibly since this post, but nothing I'd put a guarantee on. Blink once if this matches your source ...

[We vs us]

Originally Posted by urbancore

update on my rumor......announcement coming next week.

This is a new source for me, so I really can't vouch for her yet. I really hope she's got this right.

Anyone else hearing anything? Bueller?

Excellent new rumor. Do you know if an announcement will involve a building? Or just "Major Player X will be moving to town" etc.