- Sept. 14, 2021
-- If you were a tenant seeking more than 100,000 SF of industrial space this quarter, we feel for you. Austin's industrial market continued its trend of tight supply throughout Q2, driving many tenant requirements into a dwindling supply of shell space while the market awaits new deliveries later this year and into early next. Case in point: Any tenant requirement over 100,000 SF that couldn't work in a dated metal building was forced to look at shell space, much of which hasn't yet delivered. There were no 2nd generation tilt-wall options over 100,000 SF across the market.
With the market constrained for space across size ranges, Austin continued the novel trend of pre-leasing with much of the activity taking place in the Southeast and Hays County submarkets. Notably, in June, NorthPoint Development officially delivered the Plum Creek Industrial Center 92% pre-leased. Between deals struck in Phase I (444,058 SF) and one of the largest lease deals ever signed in the Austin area totaling 491,651 SF in Building III, the Plum Creek Industrial Center is left with only 73,528 SF of vacant space out of the 935,709 SF planned in the park. Elsewhere, spec industrial projects have seen similarly robust pre-leasing activity, including Phase II at Park 183 in the Southeast submarket which is nearly 80% pre-leased across its two buildings totaling 317,572 SF under construction.
Read more at https://www.colliers.com/en/research/austin/2021-q2-indus...