Q1 2014 Austin Industrial Market Report

Quarter 1, 2014 Austin Industrial Market Report by CBRE for Austin continues the trend of the last few years of negative absorption in the first quarter of the year.

• Negative absorption of 184,344 SF in the first quarter was the weakest since 2010
• Citywide vacancy is now at 11.2%
• Flex space outperformed warehouse product posting 141,000 SF of positive absorption with warehouse at 325,000 SF of negative absorption.
• The 325,000 SF of negative warehouse absorption is almost entirely attributable to Dell’s vacating 200,000 SF of Howard Ln warehouse space.
• Vacancy rates fell to 13.2% for flex space and warehouse vacancy rose to 10%.
• The Far NE submarket was the only one with significant positive absorption with a total of 143,000 SF while the NE submarket had negative absorption of 356,000 SF (primarily the Dell move out).
• Warehouse and flex space had modest rate increases with $.53 and $.79 /SF respectively.