Podcasts

 

 

This week, Srinath Kasturi joins in to talk about Austin’s rapidly-growing population and what developers, city planners, and everyone in between should do to accommodate Austin’s rise. Srinath is the Executive Vice President at Cadence McShane construction and shares in this episode how he pivoted his career from architecture to construction management—and ended up using both in his career. As the second fastest-growing US city, we also break down infrastructure, transportation, building approval, and more, getting closer to what will make Austin’s swift expansion sustainable.

Timecoded Guide:

[02:15] Srinath’s career start at Cadence McShane

[12:27] Industry growth in Austin

[16:41] Predicting the change in commodity prices

[19:01] Effects of the labor shortage

[21:49] Austin’s infrastructure growth

[25:51] City-level challenges in development

From architecture school to construction at McShane

It’s not everyday that you’ll meet someone who has spent their entire career with the company that gave them their first job. Srinath is one of the exceptions. He talks about how he went from studying architecture in India to getting a master’s in construction management in the states. Srinath also gives some background on his construction experience in India and lays out the stark differences between India and the US in architecture. The main difference between the two is population density—and Srinath knows this well. He explains later how more density can be worked in to Austin’s growth strategy.

 “If you look at New York City, the density—I’m not talking about the buildings—but the density of New York City, most cities in India have that kind of density. You feel it.”

Have you seen in the industry a change at all in office construction since COVID?

The workplace, industry, and daily norms have all changed since COVID. Srinath gives perspective on, to what extent, COVID has affected his own industry. He says that, although higher rent increases revenue,  it’s been a challenge as the number of tenants falls. Srinath mentions that it’s often easier to knock down a building and put up a new one instead of attempting to convert or repurpose an existing building. Srinath also says that COVID has affected the circulation of industry knowledge as experienced people have retired since the pandemic.

“We lost that institutional knowledge that we assumed in the next five years, that person would have translated over to somebody else, the next breed of professionals that come through. That’s created a gap in our industry and all industries, perhaps.”

 

What trends are stemming from the growth in Central Texas?

Sure, Texas is big but population-wise, regions of Texas are turning into sprawling cities. As developers keep up with the growth, infrastructure lags behind. Finding solutions to growth-related issues is an integral part of Srinath’s job. In the next 25 years, it’s projected that millions more will move to Texas. Srinath says that you can’t get there with 60-foot height restrictions. As buildings are made to last 40 years, he emphasizes that the current infrastructure and height limits are unsustainable with Austin’s projected growth.

“You bring in 2x the population, they got to live somewhere, it has to be affordable. So thinking about how these people will live and the quality of life matters. Music capital of the world, how the musician is going to make it if you don’t give them the opportunity to make a living, express their talents and everything like that. They can’t have a shelter to live in. It’s not possible. So I think the city has to make some shifts, some sensible decisions.” 

 

What are some of the hurdles at the city level for construction? 

Srinath says that, like in other industries, the city is short-staffed which creates issues as Austin’s city stretches outward and upward. He notes that, right now, it can take up to three years to get a building entitled to occupancy. He says that the city needs to form task forces that specialize and help the city plan for certain things—and that one can’t expect the city itself to plan it. Srinath adds that if there was an opportunity to fix these issues in the city, he would join in to make a difference.

“Bring in people, developers, former consortium of people that really live in Austin and want to make a difference. Bring them together. I would participate if there was an opportunity to make a difference. I think that’s what they need: some leadership, some assertive leadership that takes us in the right direction.”

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Links:

Keep up with Srinath on LinkedIn.

Visit the Cadence McShane website.

If you enjoyed this podcast, check out more episodes on Audible, iHeart, and Youtube.

Learn more about the Bukowski Law Firm and the Greater Texas Podcast on our website and Youtube channel.

 

This week, I’m joined by the President and Owner of Investors Alliance Diana Zuniga as we share our takes on the future of the real estate business in Austin, Texas. Diana shares her backstory on how she went from being an aspiring professional dancer to a trailblazer in the Texas real estate industry, bringing others along for the ride. We also discuss the future of real estate in Austin amid a rapidly changing world and throw out ideas on the local change we want to see. Although Austin has not been left out of challenging times, Diana says she can’t help but be optimistic for the future. 

Timecoded Guide:

[00:00] Start of episode

[02:56] Starting out in real estate and the risk involved

[09:55] Real estate after covid and a possible recession

[15:21] The expansion and growth of real estate

[21:04] How elections affect real estate

[23:51] City policies for Austin real estate

What was it like, starting out in a male-dominated field?

Especially when she started in real estate, Diana entered a business world run mostly by males. Diana thinks that women are innately risk averse and, with real estate being a risky business, there aren’t as many women in commercial real estate. However, being a woman in the real estate business does come with its advantages and Diana shares some of those. All in all, despite these challenges, Diana thinks that with the right intention, people can find success in real estate.

“I think that’s part of being any professional in a very risky career, that you just have to put your intention out there and just believe and believe that it’s going to work hard . . . and of course, you have to follow through.”

Diana’s outlook on a post-covid workplace

With covid pushing people to work from home, many have wanted to stay. Diana shares her take on a good workplace model and discusses what should stay the same post-covid. From her point of view, Diana prefers one-on-one meetings over working on Teams. She thinks that there’s no substitution for an in-person, “relational” environment. On the other hand, Diana dislikes the cubicle model and mentions a possible hybrid solution. 

“Our work models are changing . . . and I know that there’s pushback from some employees in some industries on coming back but I think to build the corporate culture, to have cohesiveness, I’d much rather have a one-on-one meeting with you than zoom you or just work on Teams.”

What would a recession look like in Austin?

As experts debate on whether an American recession is inevitable, those in the real estate business prepare for any scenario—although Diana doesn’t think that a recession would mean the end for Austin. She’s optimistic about the future. She thinks back to 2008 and the financial fallout of the time. Diana emphasizes how customers would pay entirely in cash for a condo by 2010 and how things have changed—even since covid began. Diana continues, talking further on Austin’s affordability crisis and how sharply mortgage rates have risen. 

“Austin in particular—we’ve always been the last fall and the first to come out.”

What’s it like, working with the city staff on projects?

Working with the city staff on real-estate projects can be a long and complicated process that requires communication between many departments. As we know, time is money and Diana shares several ideas on how things can be improved to speed up the process. To Diana, it all comes down to elected officials and how they choose to run the city. Diana emphasizes the importance of voting noting that it’s the local leadership who decides how Austin is going to grow. Overall, Diana is optimistic about Austin’s future and hopes to see more regional-focused planning for the city. 

“Some people are elected to office by a very slim margin . . . People can win by 10 votes. So your vote does matter. If you feel strongly about something, you should vote for the candidate that shares your views and make it happen—and take someone with you to vote.”

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Links:

Keep up with Diana Zuniga on LinkedIn.

Visit the Investors Alliance website.

If you enjoyed this podcast, check out more episodes on Audible, iHeart, and Youtube. 

Learn more about the Bukowski Law Firm and the Greater Texas Podcast on our website and Youtube channel.