Q3 2017 Austin Industrial Research & Forecast Report

AUSTIN, Texas - Oct. 31, 2017 - PRLog -- Austin's industrial market took another hit to it's net absorption in Q3 2017, posting 261,906 SF of negative net absorption. There were a few sizeable tenants that moved out of large blocks of space in the third quarter of 2017, including Pearson Inc moving out of 135,442 SF at Tech Ridge Five (905 Howard Lane) in the Northeast Submarket.

Looking forward, there are at least 12 small blocks of space being filled by tenants, in Q4 2017. There is also over half a million square feet of new product set to deliver in Q4 2017, with nothing set to deliver in Q1 of 2018.

Austin's citywide average rental rates decreased over the quarter from $11.09 per SF NNN to $10.66 per SF NNN. The average warehouse/distribution rental rate increased slightly to $8.41 per SF NNN from $8.27 per SF, and the average citywide flex/R&D rental rates decreased to $13.09 per SF NNN from $14.09 average rate in Q2 2017.

Austin's industrial market saw four buildings deliver in the third quarter, totaling 363,930 SF. The largest building completed in Q3 2017 was located at 6320 Stassney Lane (Building 2), which is 142,800 SF and vacant. Building 1 at 6320 Stassney Lane, is a 54,850 SF building, which also delivered and was 50% leased at the time.

In Q3 2017, 653,846 square feet of industrial supply was under construction, including one new project totaling 83,475 square feet. That new project is The Collective at South Congress, a mixed use project, located at 7601 South Congress Avenue, set to deliver in December of 2017.

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