Q2 2019 | Austin Industrial | Research & Forecast Report

Austin's industrial market sees a slowdown in new construction, but more leases
 
HOUSTON - Aug. 28, 2019 - PRLog -- Austin's industrial market posted 80,820 square feet of negative net absorption in the second quarter of 2019. Activity levels remained high as a large number of sizeable tenants occupied significant blocks of space over the quarter including Ceva Logistics, a global logistics and supply chain company that moved into 36,000 square feet at 8606 Wall Street in the Northeast submarket.

Looking forward, twenty blocks of space over 10,000 SF will be occupied by new tenants in the third quarter of 2019. One of these tenants is FedEx, who is taking 89,332 square feet at 4500 South Pleasant Valley Road in the Southeast submarket.

Austin's citywide average rental rates decreased moderately over the quarter, moving down to $10.17 per square foot in Q2 2019 from $10.57 per square foot in Q1 2019. The average citywide Flex/R&D rental rate decreased moderately to $13.65 per square foot from $14.14. The average Warehouse/Distribution rental rate decreased slightly over the quarter from $8.61 per square foot to $8.40 per square foot.

In all, 951,431 square feet of industrial supply was under construction consisting of fourteen projects. 115,351 square feet of projects in the development pipeline are scheduled to deliver in the third quarter and 8,000 square feet of that inventory is pre-leased.

Vacancy & Availability

Austin's citywide average vacancy rate increased from 8.5% to 8.8% over the quarter, due in part to new deliveries. The most significant increase in vacancy over the quarter occurred in... To read the full report, click here: https://www2.colliers.com/en/Research/Austin/2019-Q2-Industrial-Austin-Report

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Tags:Market Report
Industry:Real Estate
Location:Houston - Texas - United States
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