Sign in to follow this  
Dakota79

Northshore & 500 West 2nd St; Residential & Office High-rises

Recommended Posts

Heard Amazon is expanding its white-collar headcount as well.  

 

But one wonders what these transplants of jobs from Silicon Valley really mean besides some discretionary income and some added work experiences in the local talent pool.   The local branch, after all, does not operate like an opportunistic receiver/responder to market feedback -- as a nimble native enterprise would do -- but rather like a non-self-determining soldier deployed in the Google or Amazon army, correct?  Risk is managed from on high more than from touch signals close at hand... As such, it does relatively much less to actually develop the interfirm relationships and food webs that recycle capital through a local economy.  It's more like industrial agribusiness -- dump capital on, scoop each monoculture off at the appointed time.

 

So I want to start to say, "Good for Austin," while I ponder if it is.  The end result on economic fertility may be the same as monocropping.

  • Like 1

Share this post


Link to post
Share on other sites

Austin is favorable for tech companies because there is a lot of young talent willing to work for anything. Even at a Senior level like mine, salaries seem to average about 20k less than Houston (exceptions are the outliers like the Googles). Tech companies are able to find smart people from a large pool... and young tech workers find it more fun to work for those types of companies (or build the next "app"). Personally, I prefer Houston for the pay + cost of living, and health care industry.

Share this post


Link to post
Share on other sites
On 11/22/2014 at 10:14 AM, brian0123 said:

Austin is favorable for tech companies because there is a lot of young talent willing to work for anything. Even at a Senior level like mine, salaries seem to average about 20k less than Houston (exceptions are the outliers like the Googles). Tech companies are able to find smart people from a large pool... and young tech workers find it more fun to work for those types of companies (or build the next "app"). Personally, I prefer Houston for the pay + cost of living, and health care industry.

 

Urban economists say that the pay is priced into the region -- firms entering the labor market and recruiting nationally pay less when recruiting to desirable areas.  Even if the costs of living are higher and the offers are lower (Austin) or the costs and salaries are both high (New York), the firms are bidding less than they would have to otherwise, because people are amenable to the location and its amenity package.  The fact that the bump exists "even at a Senior level" says that the real explanation has to go deeper than a lot of youngsters willing to work for peanuts.  

 

Having to pay higher wages to get talent to move here makes Houston region firms less nimble and competitive in the free market than if they could bid less and still get the same talent, no?  More resources that could be going to innovation going instead to overhead.

 

Maybe we would have even more than 47,000,000 square feet of vacant office space to start 2019 if we had no medical industry here, but for all its press coverage the TMC knowledge industry niche has still failed so far to show signs that it will longterm do very much to diversify Southeast Texas' economy.  If the new medical school in Austin writes a new playbook, I hope we use those lessons to our ultimate benefit here.

 

While I still think it's regrettable for Austin that FAANG are not making as many interfirm decisions *in* Texas as local owners would, there seems now to be a lot of potential for people that move to the state for FAANG jobs to soon begin to moonlight and form lively new firms that *are* exporting and importing based on specific opportunities sensed from being locally based.

 

Block 185 (601 W. 2nd) near Northshore has been preleasing a tower designed by Pelli with STG, and it may soon announce being preleased for another Google office.  Pics here:

 

https://austin.towers.net/at-last-heres-our-first-look-at-the-block-185-office-tower/

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this