Q2 2017 | Austin Industrial | Research & Forecast Report

AUSTIN, Texas - July 28, 2017 - PRLog -- Austin's industrial market took another hit to it's net absorption in Q2 2017, posting 226,896 SF of negative net absorption. There were a handful of large block tenants who moved out that contributed to the negative net absorption. Though the absorption fell and vacancy increased, the rental rates throughout the market are still finding a way to increase.

Looking forward, there are at least 20 smaller blocks of space being filled by tenants, in Q3 2017. There is also over half a million square feet of new product set to deliver in Q3 2017 with another half a million set to deliver in Q4.

Austin's citywide average rental rates increased over the quarter from $10.70 per SF NNN to $11.08 per SF NNN. Warehouse/ Distribution rental rates increased slightly to $8.27 per SF NNN from $8.24 per SF, and citywide Flex/R&D rental rates increased to $14.09 per SF NNN from $13.86 average rate in Q1 2017.

Austin's industrial market saw nine buildings deliver in the second quarter, totaling 458,560 SF. The two largest buildings completed in Q2 2017 were located at 5811 Trade Center Drive, buildings 8 and 9, which are each 77,430 SF and vacant. The buildings located at 7307 Burleson Road lots 2 and 3, also delivered and were both 100% leased at the time of delivery.

In Q2 2017, 1,055,505 square feet of industrial supply was under construction, including eight new projects totaling 843,014 square feet. One of the new projects, 4100 Smith School Road, is a buildto- suit project for Data Foundry and set to deliver in October of this year.

Read more at www.colliers.com/texas/austinindustrial