Austin Warehouse Space for Lease or Sale

Austin Warehouse space for lease or sale, June 2013 update

Warehouse space in Austin vacancy rates continue to hover around  16% , this should continue for at least the next quarter.  Current vacancy rates are the lowest for the past 4 years.  Smaller square footage footprints for warehouse property is getting very limited. There are quite a few tenants who are looking for warehouse properties with smaller square footage’s that are below 4000 SF. If you are one of those tenants that is looking for warehouse property below 4,000SF expect  to see less supply and higher rates , in a market with lower vacancies, you must exercise flexibility on location preferences.

Of the  245 warehouse properties in Austin that are 2,500 SF to 3,500 SF there are only 17 spaces available which is a sign of the current market conditions.

Tenants should also expect warehouse lease rates to start moving upward depending on the location of the warehouse space.. leasing supply is trending down for the past 9 mos. Typical trending Flex spaces are hovering around a $1.00 per SF plus NNN moving into May.

The average time a warehouse property for sale is currently averaging 245 days, although there is product listed it seems that funding is still may be loosening some  and most buyer-borrowers with good credit can find financing.  As a buyer, it is important to have at least 2 years of business history under your belt to show lenders you are viable.  Sellers are starting to expect higher premiums , however everything is about supply and demand and if they cannot sell their warehouse property 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.

Warehouse space that doubles as an office space can give you a lower cost to entry which makes it attractive for potential office space users. Flex warehouse properties tend to be at the higher end of the leasing rates, so expect a bit of an increase in Austin warehouse space rates .

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 warehouse space in Austin updated for December.

• Determine what are your must haves , things you can not 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.

Austin warehouse space rates can be quoted as triple net, gross or modified gross. Triple net warehouse leases pass through insurance, taxes and common area maint costs to the tenant. Gross warehouse leases usually have the operating expenses wrapped into the monthly rent and the tenant pays electric and janitorial, whereas 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

Austin Warehouse Space for Sale Financing Information – Q1-2013 – National Averages

Average Interest Rate 4.58% | Debt Coverage 1.50 | Loan to Value 69% | Amortizations 24 yrs | Term Average 11.46 yrs

Average time on the Market over 245 days in Austin (trends as of Feb 2013), Asking prices are up 4%

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Austin Warehouse Lease Terminology

Austin Flex warehouse or Austin office warehouse properties tend to have a higher finish out along with HVAC in place that covers one hundred percent of the space. Ceiling heights in Austin flex warehouse space are not necessarily has high as a bulk warehouse so if you need high ceilings this may not be the solution for you.

Expect an average of 3% per year for your lease rate to bump for an Austin warehouse property. The cheapest warehouse property type are the metal warehouses , if you go this route don’t expect low electric bills they conduct heat and get very hot in the summer.

How do you find the right warehouse space in Austin?

Fact: If you have a commercial real estate broker representing you , you will be able to get a better deal. Why?

Well, let’s think about this.  As a broker , it is our responsibility to have knowledge and understanding of the commercial real estate business every day. Are you aware of where the best warehouse property potentials are in the Austin Texas area? You will receive expertise that prevents you from making a poor leasing or purchasing decision on a warehouse property in Austin.

Contact us today for your warehouse leasing or purchasing requirements! 512.947.5896

Click here for:examples of succsesful warehouse lease and sales transactions.

Austin Office Space Information www.Austin-Office.com

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