Austin Commercial Real Estate Market Industrial Update Q2 2014
For two consecutive quarters the Austin Industrial market shows negative absorption, the first time back to back quarters of negative absorption have been posted since 2009.
- Q2 2014 posted negative 109,469 square feet of negative absorption.
- Year to date 2014 absorption totals negative 293,813 square feet
- Vacancy has therefore risen 40 basis points quarter over quarter to 11.6%
- Flex space negative absorption totaled 94,684 square feet for Q2
- Warehouse space totaled negative 14,785 square feet of absorption
- Q2 vacancy totaled 13.4% and 10.4% respectively for flex and warehouse space.
- The Far Northeast submarket had positive net absorption of 100,000 square feet.
- The Northeast submarket posted negative 309,704 square feet of absorption, primarily from Dell vacating their Sector 6 building (-300,000 SF)
- Q2, 2014 did show an average asking rate increase of $0.04 per square foot quarter over quarter, the largest increase for citywide asking rates since tracking of this metric began.
- The 120,000 square foot 130 Pecan Building A, was added to the Far Northeast submarket during this quarter bringing the YTD total to 570,000 square feet of new building added to the greater Austin market area.
Click here for CBRE’s Q2 2014 Austin Industrial MarketView.
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