The industrial market has grown very tight in Austin with few new developments constructed in the past five years. The third quarter vacancy rate was 10.7 percent city-wide, the lowest in 12 years, CBRE noted in its report.
The north and east submarkets had the strongest performance in the third quarter. The north submarket posted 70,641 square feet of net absorption during the quarter and the east submarket posted 73,760 square feet of net absorption.
The Far Northwest, South, Georgetown and Hays County submarkets are particularly tight, all with less than 5 percent vacancy.