4th Quarter 2014 Austin Industrial Market Update

007CBRE Quarterly Market Reports for the fourth quarter of 2014 contains the following highlights.

1. Asking rates remain flat.  Overall Industrial asking rates average out to $.70/SF/Month with Warehouse averaging $.52/SF/Month and Flex Space averaging $.90/SF/Month (down $.02 from prior quarter).

The Southwest and Northwest Flex submarkets did show an uptick in the asking rate.  These submarkets have been high demand / low vacancy office submarkets and it appears that some of this demand has trickled down to the flex space marketing pushing rents up.  Southwest market flex rates totalled $1.28/SF/month up $.23 year over year and the Northwest market flex space rates averaged $1.12/SF/Month up $.27 year over year.

2. Vacancies are tightening across Austin with the North and Southeast submarkets having the lowest rates of 9.7% and 8.6% respectively.

3. Net absorption ended the year on a positive note, up 266,000 SF for the year.  The fourth quarter had 325,000 SF of net absorption.  The North and Northeast submarkets had the most positive net absorption in the fourth quarter while the Southeast had the biggest loss.

4.  Construction totaled 578,000 SF of new industrial product delivered to the market in 2014.  239,000 SF remains under construction in 2015.

5. Notable Tenant Movement included:

a.  Allergan occupied 88,000 SF at Parmer Sector 6.

b.  Blackmon Mooring occupied 49,500 SF at Northpointe Trade Center Bldg C.

c.  High Tech Carpets occupied 35,000 SF at Waterford Center 1.

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