Houston named No. 1 destination for millennials on the move from this Texas city

putting down roots

Turns out Austin-born millennials haven't moved too far. Photo by Getty Images

For the most part, Austin millennials have stayed close to home after entering adulthood, a new report indicates.

At age 26, nearly 70 percent of people who were born from 1984 to 1992 and raised in Austin remained there, according to the report. That leaves more than 30 percent who moved elsewhere.

Data compiled by researchers at Harvard University and the U.S. Census Bureau pinpoints Houston as the No. 1 target for millennials who lived in Austin at age 16 and grew up here but lived somewhere else in the U.S. at age 26. The Bayou City attracted 3.9 percent of millennial movers born from 1984 to 1992 (a large subset of the millennial generation) who grew up in Austin.

Bayou City was followed by San Antonio (3.1 percent), Dallas (2.8 percent), Killeen (1.3 percent), and Fort Worth (1.2 percent). These were the only Texas cities to surpass the 1 percent mark for the share of millennials born from 1984 to 1992 who had moved away from Austin. In 2022, these millennials are celebrating birthdays from 30 to 38.

These are the top five out-of-state destinations for Austin-raised, on-the-move millennials:

  • Los Angeles — 0.86 percent
  • New York City — 0.79 percent
  • Denver — 0.64 percent
  • Seattle — 0.50 percent
  • Washington, D.C. — 0.43 percent

The list of Texas places that sent millennials to Austin looks very similar to the list of places that gained millennials from Austin. The top five are Houston (6.7 percent of movers born from 1984 to 1992 who came to Austin), Dallas and San Antonio (3.7 percent each), Fort Worth (2 percent), and Brownsville (1.6 percent).

Los Angeles is the only out-of-state destination that broke the 1 percent barrier for millennials who relocated to Austin (1.6 percent), followed by Chicago (0.97 percent), Washington, D.C. (0.63 percent), Detroit (0.51 percent), and Boston and New York City (0.49 percent each).

The geographic regions cited in the report are not metro areas but, instead, are commuting zones. A commuting zone represents a collection of counties that define an area’s labor market.

Researchers relied on federal tax, population, and housing data to assemble the report.

The statistics for Austin largely align with nationwide trends. The researchers say 80 percent of young-adult movers in the U.S. had relocated less than 100 miles from where they grew up and 90 percent had moved less than 500 miles.

“The majority of young adults stay close to home,” the researchers explain. “Average migration distances are shorter for Black and Hispanic young adults than for White and Asian young adults. Average migration distances are also shorter for those with lower levels of parental income.”

“For many individuals,” the researchers conclude, “the ‘radius of economic opportunity’ is quite narrow.”

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This article originally ran on CultureMap.
Samsung's $192.1 billion investment in the Austin area would create 10,000 new jobs at 11 new chipmaking plants. Photo courtesy of GSA Architects

Samsung sets sights on nearly $200 billion expansion in Texas

chipping in

As it builds a $17 billion chipmaking factory in Taylor, tech giant Samsung is eyeing a long-term strategy in the Texas area that could lead to a potential investment of close to $200 billion.

Samsung’s plans, first reported by the Austin Business Journal, call for an additional $192.1 billion investment in the Austin area over several decades that would create at least 10,000 new jobs at 11 new chipmaking plants. These facilities would be at the new Taylor site and the company’s existing site in Northeast Austin.

The first of the 11 new plants wouldn’t be completed until 2034, according to the Business Journal.

“Samsung has a history already in the Austin market as an employer of choice, providing high wages, great benefits, and a great working environment. All of this will be on steroids in the not-too-distant future, creating a historic boost to the already booming Austin economy,” John Boyd Jr., a corporate site selection consultant, tells CultureMap.

Samsung’s preliminary plans were revealed in filings with the State of Texas seeking possible financial incentives for the more than $190 billion expansion. The South Korean conglomerate says the filings are part of the company’s long-range planning for U.S. chipmaking facilities.

Given that Samsung’s 11 new plants would be decades in the making, there’s no certainty at this point that any part of the potential $192.1 billion expansion will ever be built.

Last November, Samsung announced it would build a $17 billion chipmaking factory in Taylor to complete its semiconductor operations in Northeast Austin. Construction is underway, with completion set for 2024. Boyd proclaimed last year that the Taylor project will trigger an “economic tsunami” in the quiet Williamson County suburb.

The Taylor facility, which is expected to employ more than 2,000 people, ranks among the largest foreign economic development projects in U.S. history. The impact of a nearly $200 billion cluster of 11 new chipmaking plants would far eclipse the Taylor project.

The Taylor factory will produce advanced chips that power mobile and 5G capabilities, high-performance computing, and artificial intelligence.

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This article originally ran on CultureMap.
The electric vehicles producer is already plotting an expansion. Courtesy of Tesla

Tesla gears up for 500,000-square-foot expansion of Texas factory

pedal to the metal

Less than a year after Tesla opened its factory in Texas, the maker of electric vehicles is already plotting an expansion.

A permit application filed June 29 with the City of Austin and approved July 1 shows Austin-based Tesla plans to build a two-floor, 500,000-square-foot space to enlarge its General Assembly 2 and General Assembly 3 operations. Currently, Tesla produces Model Y vehicles at the 2,500-acre site, which is along State Highway 130 near State Highway 71 East.

The 500,000-square-foot expansion, first reported by Tesla watcher Sawyer Merritt, would grow the size of the factory by more than 11 percent.

Production at the plant began late last year. In April, Tesla co-founder and CEO Elon Musk hosted an invitation-only grand opening bash at the factory.

The Tesla permit doesn’t indicate how much the expansion will cost. But we can get an idea by looking at how much the factory cost to build.

Paperwork filed last year with the Texas Department of Licensing and Registration identified $1.06 billion in construction expenses for nearly 4.3 million square feet of space. That works out to $247 per square foot. If you apply that figure to the proposed expansion, it would cost nearly $124 million. Of course, that’s a rough estimate, and construction costs have gone up since the existing factory was finished.

The proposed expansion comes as overall production at Tesla’s plants has tapered off. According to the Reuters news service, analysts predict Tesla will report second-quarter deliveries of 295,078 vehicles. That would be below the record-setting total of 310,048 vehicle deliveries in the first quarter.

It’s not known precisely how many vehicles Tesla is producing at the Austin plant, but industry insiders estimate the total ranges from 2,000 to 5,000 vehicles per week. The Electrek blog says Tesla is aiming to manufacture 10,000 vehicles per week there by the end of this year.

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This article originally ran on CultureMap.
Make your SXSW plan — SXSW starts today. SXSW/Instagram

Everything you need to know about SXSW’s anticipated in-person return to Austin

know before you go

SXSW starts this week, and it’s the first in-person event since 2019, which had more than 400,000 people attend.

The Austin Convention Center will play host to SXSW EDU through Thursday, March 10; SXSW Film Fest runs from Friday, March 11-Saturday, March 19; SXSW Music Fest runs from Monday, March 14-Sunday, March 20, Interactive runs from Friday, March 11-Saturday, March 19, and Flatstock 77 runs from Thursday, March 17- Saturday, March 19. At the Palmer Events Center, the SXSW Wellness Expo will be held from Saturday, March 12-Sunday, March 13.

Click here for your guide to connecting with Houston innovators this year at SXSW.

If you’re one of the many people attending, here are some things you should know before you go.

First things first: COVID-19 protocols. Austin is now in Stage 2 of its COVID-19 risk-based guidelines, and SXSW has made the decision to keep its existing guidelines in place. That means anyone who is attending needs to provide proof of vaccination against COVID-19 or a negative COVID-19 test in order to pick up credentials.

Speaking of credentials, they can only be issued to, picked up by, and used by the participant named in the registration. All badge types can be picked up at Exhibit Hall 1 of the Austin Convention Center through March 19. For a list of the SXSW credential pickup dates and times, click here. Don’t forget to bring a government-issued photo ID and verification of vaccination or recent negative COVID-19 test.

As for getting around, you can catch a free ride on one of the circulating festival shuttles. You can also use pedicabs or public transit, or you can park close by and do some walking. Most of the venues are walkable and within a few minutes of the Austin Convention Center. For a look at road closures and commuting options, click here.

One way to help organize your time is by downloading the SXSW GO app. From the app, you can link your badge, RSVP for events, build your schedule, and sign up for notifications so you don’t miss those things you really want to see.

SXSW is a huge festival featuring events for many different genres, including music, film, television, gaming, and more. It will be difficult to attend everything you want.

Here’s some advice from Jim Kolmar, consulting film programmer for SXSW, and long-time attendee.

“I always tell people pick out three things you really want to do and make sure you do those,” he says. “Everything else, just have a plan, but leave it open to serendipity because your plan is going to fall apart at some point. There’s just no way to do everything exactly the way you want to. And I think that’s the best way to experience it, too. Just be in the moment.”

For those who don’t want to spend money but still want a SXSW experience, you can subscribe to free events here.

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Now that Tesla's vehicle manufacturing factory is up and running, the company is planning another facility adjacent to the site. Courtesy of Tesla

Tesla cranks up Texas expansion with plans for massive new facility

driving more growth

Tesla has barely begun manufacturing electric vehicles at its new factory in east Travis County, and it’s already planning an expansion.

The Austin-based automaker is eyeing a 32-acre site adjacent to its auto manufacturing plant to build a nearly 1.6-million-square-foot industrial facility that would produce cathodes for battery manufacturing, as first reported by the Electrek industry website.

Tesla owns about 2,100 acres where the new 4.3-million-square-foot factory stands. The factory started producing vehicles late last year.

An application submitted earlier this month for an Austin building permit lists Colorado River Project LLC as a co-applicant for a project named “Cathode,” according to the Reuters news service. That’s the corporate name Tesla has used throughout the permitting process for the new factory. A spokeswoman for Austin Development Services Department told Reuters that the latest permit is for a Tesla cathode facility.

Reuters explains that cathodes are the most expensive component of a battery, and making them requires a lot of space and emits significant amounts of carbon dioxide.

It’s unclear when construction on the Tesla cathode facility might start and how many people it might employ. The Tesla car manufacturing plant is expected to employ at least 5,000 people.

A search of Tesla’s website found one job posting in Austin that contains the word “cathode.” The company is seeking an “energetic and engaging” quality supervisor to lead one of the first teams of quality technicians for Tesla’s “Cathode Quality Control Lab.”

“You will exercise your exceptional people skills to delegate tasks and guide personnel in developing one of Tesla’s newest manufacturing teams. Your proven record of driving improvements and agility in responding to quality excursions will enable you to set the tone for the rest of the team,” the job posting says.

Last year, Tesla moved its headquarters from Northern California to 2,100-acre site in east Travis County.

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This article originally ran on CultureMap.
Coco bites into Texas. Photo courtesy of Coco

California company zips into Texas with robot food delivery in 15 minutes

THE FUTURE IS NOW

A Los Angeles-based business is rolling out its fleet of food delivery robots into a Texas town with plans for expanding into other cities in the Lone Star State.

Coco, which offers a remotely piloted delivery service, has hit the streets of Austin with its food-delivery bots as part of its expansion to targeted markets. Fueled by a recent funding round that garnered the company $56 million, Coco’s expansion plans also include rolling out bots in the Houston, Dallas, and Miami markets soon.

“When evaluating markets for expansion, Austin stood out to the team as a perfect match,” says Zach Rash, co-founder and CEO of Coco, via a release. “Austin’s entrepreneurial spirit, top-notch food scene, and commitment to supporting small businesses makes it an ideal fit for Coco.”

Here’s how it works: Customers place a restaurant order like usual, then a Coco bot — operated by a “trained pilot” — drives to the restaurant to pick it up. The restaurant staff loads the bot as soon as the food is ready, and Coco arrives at the customer’s door within 15 minutes. Each bot is locked until it reaches the customer, so no one can tamper with your pizza or egg rolls.

The company claims that compared with traditional food-delivery methods, its bots decrease the time it takes food to reach the customer by 30 percent, and that the service has an on-time delivery rate of 97 percent. Coco bots work at shorter distances and on mostly pedestrian paths. As the company’s website notes, “A surprisingly large portion of deliveries are done within less than 2 miles. We believe there is no reason to have a 3,000-pound car deliver a burrito over short distances.”

Coco has rolled out with 10 Austin partners — mostly merchants that service the South Lamar Boulevard, South Congress Avenue, South Austin, downtown, North Austin, North Loop, and Domain neighborhoods — and aims to continue onboarding many more in the coming weeks “to accommodate the rapid influx of merchant interest.”

It’s Coco’s trained pilots and commitment to “perfecting the last-mile delivery experience” that helps set it apart from competitors, according to the company and its partners.

The company hasn't released when it plans to roll into other Texas cities, just that it has the intention to do so. Houston's no stranger to self-driving food deliveries. Another California-based company, Nuro, has several pilot programs from groceries and pharmaceuticals to pizza. The University of Houston also launched bots on campus in 2019.

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This article originally ran on CultureMap.
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CultureMap Emails are Awesome

Property Showcase

How this Houston innovator's tech is gearing up to impact EV charging, energy transition

houston innovators podcast episode 172

With more and more electric vehicles on the road, existing electrical grid infrastructure needs to be able to keep up. Houston-based Revterra has the technology to help.

"One of the challenges with electric vehicle adoption is we're going to need a lot of charging stations to quickly charge electric cars," Ben Jawdat, CEO and founder of Revterra, says on the Houston Innovators Podcast. "People are familiar with filling their gas tank in a few minutes, so an experience similar to that is what people are looking for."

To charge an EV in ten minutes is about 350 kilowatts of power, and, as Jawdat explains, if several of these charges are happening at the same time, it puts a tremendous strain on the electric grid. Building the infrastructure needed to support this type of charging would be a huge project, but Jawdat says he thought of a more turnkey solution.

Revterra created a kinetic energy storage system that enables rapid EV charging. The technology pulls from the grid, but at a slower, more manageable pace. Revterra's battery acts as an intermediary to store that energy until the consumer is ready to charge.

"It's an energy accumulator and a high-power energy discharger," Jawdat says, explaining that compared to an electrical chemical battery, which could be used to store energy for EVs, kinetic energy can be used more frequently and for faster charging.

Jawdat, who is a trained physicist with a PhD from the University of Houston and worked as a researcher at Rice University, says some of his challenges were receiving early funding and identifying customers willing to deploy his technology.

Last year, Revterra raised $6 million in a series A funding round. Norway’s Equinor Ventures led the round, with participation from Houston-based SCF Ventures. Previously, Revterra raised nearly $500,000 through a combination of angel investments and a National Science Foundation grant.

The funding has gone toward growing Revterra's team, including onboarding three new engineers with some jobs still open, Jawdat says. Additionally, Revterra is building out its new lab space and launching new pilot programs.

Ultimately, Revterra, an inaugural member of Greentown Houston, hopes to be a major player within the energy transition.

"We really want to be an enabling technology in the renewable energy transition," Jawdat says. "One part of that is facilitating the development of large-scale, high-power, fast-charging networks. But, beyond that, we see this technology as a potential solution in other areas related to the clean energy transition."

He shares more about what's next for Revterra on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.


Report: Houston's hot medical office market might be on track to cool

by the numbers

Houston’s medical office market is on a roll.

A report from commercial real estate services company JLL shows net absorption and transaction volume saw healthy gains in 2022:

  • The annual absorption total of 289,215 square feet was 50.5 percent higher than the five-year average.
  • Transaction volume notched a 31.7 percent year-over-year increase.

Meanwhile, net rents held steady at $26.92 per square foot, up 1.3 percent from the previous year. The fourth-quarter 2022 vacancy rate stood at 15.9 percent.

Despite those numbers, the report suggests a slowdown in medical office rentals may be underway.

“Tenants who may have previously considered building out or expanding their lease agreements are now in a holding pattern due to increased construction costs and higher interest rates,” the report says. “These factors are having a direct impact on financial decisions when it comes to lease renewals, making it more likely that tenants will remain in their existing location for the foreseeable future.”

Still, the report notes “a number of bright spots for the future of healthcare in Houston.” Aside from last year’s record-high jump in sales volume, the report indicates an aging population coupled with a growing preference for community-based treatment “will lift demand even higher in coming years.”

The report shows that in last year’s fourth quarter, 527,083 square of medical office space was under construction in the Houston area, including:

  • 152,871 square feet in the Clear Lake area.
  • 104,665 square feet in the South submarket.
  • 103,647 square feet in Sugar Land.
Last fall, JLL recognized Houston as a top city for life sciences. According to that report, the Bayou City lands at No. 13 in JLL’s 2022 ranking of the country’s top 15 metro areas for life sciences. JLL says Houston “is poised for further growth” in life sciences.

Houston financial services firm announces acquisition, plans to grow

M&A radar

A Houston-based financial services company has made a recent strategic acquisition that gives it a new banking status.

LevelField Financial, which is creating a platform that combines traditional banking and digital asset products and services, announced this week that it is acquiring Burling Bank, an FDIC-insured, Illinois state-chartered bank. According to the company, once it receives regulatory approval, "LevelField will be the first full-service bank to offer fully compliant traditional banking and digital asset services."

The financial terms of the deal's transaction, which is expected to close later this year, were not disclosed.

The combined company will be able to provide traditional banking services, as well as LevelField's digital asset management. Burling Bank's senior management team will join LevelField's leadership, per a press release. They will focus on serving the bank's existing clients and growing the banking business nationwide.

"We conducted a broad review of banks in the U.S. to find the ideal institution with both an existing business and a management team who are aligned with our vision; we exceeded our expectations with Burling Bank. With this acquisition, LevelField will become a traditional bank, albeit one serving customers interested in the digital asset class," says Gene A. Grant II, CEO of LevelField Financial, in the release.

"We are thrilled to have the Burling executives join our leadership team, and together we intend to deliver fantastic customer service and well-designed products to customers who have an interest in accessing the digital asset class through a traditional bank," he continues.

Founded in 2018 by former banking executives, LevelField's leadership believes "the future of money is digital and that banks will continue to be a trusted provider of financial services," according to the website. This acquisition comes ahead of the company's plans to expand nationally.

"LevelField's strategic approach presented a tremendous opportunity for the bank to expand beyond our local footprint and serve customers with shared interests across the nation," says Michael J. Busch, Burling Bank president and CEO. "Together, we will continue to provide superior service and demonstrate that we truly understand the expanding and unique needs of our customers. Additionally, through the carefully developed suite of products we can address our customers' interests in digital assets and introduce them to LevelField's safe, simple, and secure platform."

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