Quarter 3 Austin, Texas Industrial Market Improves

CBRE‘s Q3 2013 Austin, Texas Industrial Market report shows a continued uptick.

1. The 3rd Quarter of 2013 had its lowest vacancy rate in 12 years – coming in at 10.7% (8.2% in 2001).
2. 200,000 SF +in positive net absorption in the 3rd quarter.
3. Warehouse space outperformed flex space, accounting for 66% of the net absorption – although in the near term it is expected that flex space will see an uptick due to rising office rates.
4. North and east submarkets outperformed all others.
5. Rental rates are slowly rising across all product types.
6. CBRE suggests that tenants renewing their leases should consider extending leases early and renewing for a longer term to try and gain a more competitive rate as the marketplace continues to tighten.