Q1 2015 Austin Industrial Market Report
Citywide average rental rates
continue their steady rise in the Austin Industrial Market at the end of the first quarter of 2015. Since the first quarter of 2014 average rental rates have increased by 4.5% quarter to quarter up to $8.35/SF NNN and are up 21% on a year to year basis from $6.90/SF NNN. Average rental rates for industrial lease space in the southwest sub-market is at $14.13/SF NNN up 1.7% since Q4 and up 6.9% year over year. The next highest rental rates were in the east sub-market at $13.39 up 30% quarter over quarter and up 145% year over year.
Vacancy is slightly up at 8.8% from 8.4% in Q4 2014. Among sub-markets the southwest has the lowest vacancy at 1.7% followed by the south at 2.7% and then the east at 4.2%. The Round Rock sub-market has 17.6% vacancy.
Q1 absorption totaled a negative 20,000 SF with the southeast sub-market having the largest number of SF of negative absorption at 387,000 SF. Q1 positive absorption by sub-market was led by the far northeast with 327,000 SF absorbed.
One building totaling about 200,000 SF was completed in Q1 2015 with just under 700,000 SF still under construction in the area.
SOURCE: Q1 2015 Industrial Market | Colliers International | Austin Industrial Market Research Report
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