Austin Industrial Market Continues Positive Momentum

Q2, 2011 Austin Industrial Market

Data from Industrial Trends Report – Second Quarter 2011 Austin, TX, Grubb & Ellis

• 208,374 square feet of net absorption from Q1 to Q2.
• Four consecutive quarters of demand has equated to a 1.5% reduction in overall vacancy
• Warehouse / Distribution vacancy down to 14.7%
• R&D / Flex vacancy down to 19.9%
• Asking rent has stabilized to an average of $7.03/square feet annual or $.59/square foot a month
• Looking ahead, strong rental growth will continue to be stymied until concessions and elevated vacancies are absorbed.
• Likely to remain a tenant’s market for next 1-2 years