Austin Industrial Vacancy at 6.7% as of the Second Quarter of 2016
Austin Industrial Vacancy near Historic Low.
City wide Industrial vacancy in Austin stands at 6.7% as of the end of the second quarter in 2016, a low that hasn’t been seen since the late 1990’s.
Three Austin sub markets have vacancy less than 3% including the Far Northwest, Northwest, and South.
Warehouse vacancy totals 5.1% city wide.
There was 180,000 square feet of positive net absorption in the second quarter with 167,000 square feet of this total being warehouse space.
Warehouse and flex rates have increased by 24.5% and 31.6% respectively since the first quarter of 2014.
Four new industrial properties are under construction in the Southeast submarket for a total of 623,000 square feet under construction.
Flex rates are becoming competitive with value office rents in parts of Austin.
OBSERVATIONS With vacancy low and demand remaining strong expect rents to continue to rise.
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