A recent article in the Austin American Statesman stated that Oracle, the second largest software company in the world is planning a second phase that would add an additional 420,000 square feet of building. For those of you that don’t know, there are 43,560 square feet in an acre. So the additional building will be just under ten acres. All this is in addition to the existing half million square feet that Oracle moved into in March at their new Lady Bird Lake location off Riverside Drive. This is location is significant as you read onward. The co-founder of Oracle, Larry Ellison stated that the employee base will grow to 10,000. Oracle was founded in Redwood Shores, California (Silicon Valley area) but instead of expanding there has chosen Austin for its expansion. One of the reasons cited by Ellison for the expansion is that Austin is a place that “…our people want to be.”. Reasons not cited but known to yours truly is that it is cheaper to build in Austin vs. building in the Bay Area of California, there isn’t a state income tax, it is cheaper to live in Austin vs. just about anywhere in California, and Austin is a great place to live. Now how about Riverside Drive? Oracle’s Riverside Drive investment is going to change this area according to Angelos Angelou, a local economist. And Mr. Angelou is right on target. A local television station ran a piece recently on a large apartment complex on Riverside Drive that has sent lease termination notices to their residents informing them that the place will be demolished. What is proposed for the future is multi story mixed use building with offices, shops, and restaurants; hey someone has to cater to the 10,000 well paid Oracle staff!
And of course this is good news for us investors in Austin area residential rentals. These 10,000 hires will have to live somewhere. Many of the new hires according to Ellison will be recent college, our good friends the millennials. Millennials make good money and make great renters!
Important Note: The deadline to protest your property taxes has been moved up from 31 May to 15 May.
Rick Ebert / Austin, Texas / 16 April 18