Austin Warehouse Space for Lease or Sale
Austin Warehouse space for lease or sale heading into March 2014 is still trending towards a landlord’s market which will have lower vacancies which ended 2013 below 10% in the Austin Metro area. Lease rates moved up in Flex office space (see info below) coming in closer to $1.00 per sf per month with standard office warehouse space averaging $0.65-$0.80 per square foot per month. Forecasts for Austin moving forward are positive growth for the next 2 years.
January 2014 continued: Warehouse property for sale listings in the 20,000+ square foot range are more plentiful, where small warehouse properties for sale below 5,000 SF are not in surplus.
This post is about the types of warehouse space that is located in the Austin area , and what you can expect when you are wanting to find an industrial property for lease or sale.
Industrial property specialists
When you decide to work with Shire Commercial, you are working in tandem with a true “specialist” , there are commercial real estate brokers who take on every type of commercial real estate property. These types of brokers that do not have designated people for each type of commercial property are called generalists and the do everything unless they are a bigger firm that designates a different person to tackle each type of property. With Shire Commercial, you get an office and warehouse property specialist. Period.
Types of warehouse space
There are a few types of industrial warehouse property in Austin , here is the list of the type of warehouses that are available:
- Office -warehouse space- this is space that is defined by it’s name , they have a designated office area which is air conditioned and an open warehouse area. Access doors can be dock high or grade level, we track these types of properties starting at 2,500 square feet up to 20,000+ square feet. This is a middle of the road solution lease rate wise.
- Flex warehouse – this type of warehouse property is a good hybrid solution for a tenant that is looking for an office -showroom type property- they tend to be a bit nicer and not as plain and simple an office warehouse or a bulk warehouse. This tends to be the highest lease rate solution relative to other warehouse solutions.
- Bulk warehouse- this is the simplest type of warehouse property- usually does not have an office in it and used for storage or distribution, the warehouse area is not air conditioned. This is the cheapest type of space out there.
Warehouse property for Sale
The supply for warehouse property for sale is fairly even within the 5,000-20,000 square foot range. As a buyer, it is important to have at least 2 years of business history along with a pre-approval for financing with your lender to show you are a viable buyer. Sellers are starting to expect higher premiums , however everything is about supply and demand and how long a warehouse property for sale is on the market , that strategy may eventually change. Warehouse space for sale in the outlying areas of Austin has the most aggressive pricing and will most likely continue to do so.
Determine what your warehouse needs are
Concessions are still readily available and we strive to help our clients find the best deals on warehouse properties for lease or sale in Austin. Below are some fundamentals to think about as you get ready to lease or purchase a warehouse property. Check out our charts of current lease rates for warehouses in Austin
- Determine what are your must haves , things you cannot give up in a negotiation such as power requirements, door access, 18 wheeler access , 100% HVAC etc.
- Determine what you are willing to be flexible on and what you can give up that is of low interest to you, location, type of access etc.
- Outlying areas have the more aggressive rates and sales pricing typically, the closer to downtown Austin, the higher the rates and asking prices.
Rather than spending time and effort finding and negotiating on warehouse property without market tools, why not utilize Shire Commercial’s expertise? Clients are not charged any fees. You can utilize our services and leverage the opportunity for us to serve you by adding a negotiator on your team to make a warehouse property work for you.
How warehouse lease rates are quoted
Austin warehouse lease rates can be quoted as triple net, gross or modified gross. Triple net warehouses for lease pass through insurance, taxes and common area maint costs to the tenant. When leasing a warehouse a “gross lease”will have the operating expenses wrapped into the monthly rent and the tenant pays electric and janitorial, whereas a warehouse for lease with modified gross means that usually a portion of the operating expenses may be passed through to you as the tenant, but the lease rate per month includes expenses and is quoted as a total per month , as an example $0.75 cents per month