AUSTIN, TX-Of all commercial property sectors, multifamily is perhaps the only one that developers can get excited about today, and even then, there are only certain markets that can absorb new product. Local experts say Austin is one of those few markets, encouraging developers to seek out land and break ground on new projects.

“The apartment absorption in Austin has been tremendous,” says Andrew Shih, a director with Apartment Realty Advisor’s local office. “Occupancies and rents have risen dramatically quarter over quarter. As a result, we expect the developers who have been on sidelines for number of years to start doing something again.”

Shih tells GlobeSt.com it’s quite possible Austin may even see an apartment shortage since new deliveries have dropped significantly. Data from MPF Research indicates there were only five apartment projects totaling 924 units under construction at the end of 2010. By comparison, 3,027 units in 12 projects were completed last year. Over the past decade, Austin averaged about 6,300 units completing annually.