Austin Area Large Warehouse Leasing Resources

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Large Warehouse Overview-For Tenants

Do you want to leverage your ability to find, negotiate and close on a profitable small warehouse lease in Austin? If so, this is the page for you!

Shire Commercial helps buyers and tenants acquire or lease large warehouse space  15,000 SF, 30,000 SF  and up to 50,000 SF +.  The more information you have as a tenant or a buyer, the better off you are because you will stay more informed than others.  For 2017, inventory wise for warehouse properties in Austin, the larger vacancies are currently in the larger warehouse inventories starting at 10,000 SF and moving up from there.  The Far South and Northeast   Sub-Markets have the highest inventories as of April 2017 . When you choose to team up with a specialist like Shire Commercial, your direct benefits come from consistent tracking of the warehouse property market consistently every day so that You  can make the right decisions. Also provided for your information are recent posts regarding commercial real estate industrial property in the Austin area.

  • Research this page for additional information such as: Blog Posts and examples of successful transactions completed for our tenant clients.

 

 


 2018 First Quarter Large Warehouse Properties in Austin TX

The first quarter of 2018 is looking alot like the end of 2017, inventories for large warehouses for sale are higher than smaller square footage warehouses at 10,000SF or lower.  Numbers of inventory available have whittled down to below 10 properties per sub-market in the Austin area for Q1 2018.  As far as the leasing outlook, it looks a bit better with some more development and inventory coming online. For small warehouse properties , inventory is highest at this time in Northeast, North, South and Hays County.

2017 Data :Large Warehouses in Austin Articles and Information for Tenants

There are approximately 465 Flex warehouse properties , along with 594 Office warehouse type properties in the Central Texas market.  Austin warehouse spaces for lease changes daily especially in a tight market from 2016 moving into 2017.

Inventory picture for Austin warehouse space shows for Flex R&D space overall at 10% with Warehouse- Distribution vacancies coming in at a paltry 5.9%.

Clients utilizing our services will be able to benefit from search and negotiation strategies based on our historical results with other clients and the knowledge we possess about leasing Austin warehouse space. Shire Commercial specializes in tracking warehouse properties for sale and for lease, you can check various sub-market locations, rates and asking prices on this website. , if you don’t see what you are looking for call us today for a free analysis, availability changes daily.

If you would like to see detailed active listing data on large or small warehouse spaces for lease in Austin , Click on the specific orange button.

Lease Warehouses > 6,000SFLease Warehouses< 6,000 SF in Austin

 

Austin Warehouse Transactions Done by Shire Commercial

 

 

 


Inventory Picture for 2017

The largest concentrations of inventory for warehouse properties in Austin are as follows for 2017:

  • North 4.7M Square feet
  • North East 8.4M Square feet
  • Southeast 11.6M Square feet

Austin Warehouse Report | Q1 2018

Posted by on Apr 10, 2018 in Austin warehouse space for lease, Uncategorized, Warehouse space for lease | 0 comments

Austin Warehouse Report-Summary for Q1 2018

In a nutshell, the word for the Austin warehouse report is more development and deliveries.  Approximately 20+% inventory has been delivered within the past 5 quarters than a period of 6 years.  Most of the new inventory has been in the Southeast warehouse market , with more developments occurring in the Northeast sub-market of Austin towards Hutto.  Vacancy rates have climbed to over 10% now and lease rates have declined a bit by about $0.28 cents per square foot per month.

Forward Expectations

With regard to this Austin warehouse report, we are seeing  more availability come onto the Austin warehouse market for larger warehouse spaces , small warehouse properties are still fairly tight in supply.  Although rents may decrease some due to more properties on the market, expenses are seeing increases due to property taxes and the City increasing them steadily every year.  Depending on the sub-market OPEX expenses may force some tenants to reconsider where they want to be located.  We are also seeing more sub-leases come up which is an indication of consolidations or tenants who took more space than they needed and either want out of their present lease or their business has taken a turn where they do not want to be located in the Austin area anymore.

Austin Warehouse Report  of  Numbers of Warehouse Buildings per Sub-Market for Q1 2018 Northwest Austin Warehouse Space

Central 38  North 253  Northeast 137  Northwest 33  Far NW 13  Round Rock 93  Georgetown 37  South 76 Southeast 200

Warehouse Leasing

Posted by on Mar 14, 2018 in Commercial Real Estate Tips, Warehouse space for lease | 0 comments

Warehouse Sub-Market and Square Footage

The size of any warehouse space and those within a specific sub-market can  greatly determine the base leasing rate. For warehouse properties, the warehouse leasing rate is derived as a base rate typically that has NNN (triple net expenses) added onto the rate.  Landlords will typically try and want to maximize their rental rates for warehouses to ensure income stream, this is an accepted practice and there isn’t much a tenant can do about it. The advantage a tenant has would be in down markets, not up -markets like Austin is currently seeing for 2017 and into the first quarter of 2018.

Leasing Brokers Warehouse update Texas

Leasing brokers or tenant representatives are usually more motivated to lease larger spaces, at Shire Commercial we start leasing warehouse properties at 3,500SF and up.  Always looking for the best interests of the tenants , we will help you negotiate the best deal within the sub-market you currently want to place your business.  Due to sub-market dynamics that are different in each sub-market from Cedar Park to Round Rock to San Marcos each has its own dynamics and factors that will directly affect leasing rates for warehouse space.  Some of these factors may be the demographics, economics and vacancies within the property you are interested in.  It is our standard practice when working with tenants , that the landlord make the initial offer rather than the tenant. All offers are written via a Letter of Intent or LOI (more commonly known within the commercial real estate industry).  Letter of intents are not binding and are negotiation vehicles in which Clients can take advantage of Shire Commercial’s expertise on market conditions and strategies to help tenants execute new leases or renew existing ones.  Looking at warehouse properties in lower vacancy sub-markets such as Northwest Austin may not be as flexible as higher vacancy sub-markets such as Southeast Austin.

Renting a warehouse

Posted by on Oct 6, 2017 in Austin warehouse space for lease, Commercial Real Estate Tips | 0 comments

Renting a Warehouse in Austin?

What is involved in renting a warehouse? If you are a new business and this is your first run at a warehouse or perhaps you are a young company moving from one warehouse property to the next this blog is for you.  Renting a warehouse is not just a process of finding something on the internet and cutting a deal. If it was that simple, then a commercial real estate broker or agents would not need any experience or any mandatory continuing education.  Let’s start with the simple things first, identification.  Finding the right warehouse to lease, is probably the easiest part however on some internet sites, the consumer is restricted to seeing what is available. Also, on some sites 60% of the data may be stale or not updated, therefore causing a major time sync in finding the right warehouse to rent. Also understand that is going to take 2X the monthly rent for you to execute a lease, meaning you pay 1 month in advance plus 1 month of security deposit.

Financials and Credit Warehouse update Texas

We come across this and you will too as a tenant every time you are renting a warehouse in Central Texas. How is your credit? When we ask this of a potential client, we are not necessarily asking do you pay your bills on time? It is a little more intricate than that. From experience since 2004, we know that most landlords especially on large warehouse properties are going to scrutinize your ability to pay the rent on time and judge your capacity to pay consistently over the full term of your lease.  So what should you expect?

  • Be able to provide the last 2 years of income tax statements to provide evidence that your business is doing well
  • Be able to provide bank statements for the past 2 months. -Your banks statements obviously show solvency. Rule of thumb? Have at least 8 months of more “Surplus cash” in your bank acct. Example: If you are renting a warehouse for $3,000.00 per month (all in) , you should have at least $24,000 cash in the bank.  The more the better.
  • Startups same rule as above with bank statements, however be ready to be asked to sign a personal guarantee when you execute your warehouse lease.

 

Austin warehouse construction | Q2 2017

Posted by on Sep 25, 2017 in Austin Real Estate News, Austin warehouse space for lease, Warehouse property for Sale | 0 comments

Austin warehouse construction growing

With Austin’s industrial market still below 10% for the past year , Austin warehouse construction is starting to see some emphasis. For the most recent quarter, occupancy rates remained the same with still positive occupancy.  New Austin warehouse construction delivered during the 2nd quarter of 2017. Most of the new construction was delivered in the Southeast sub-market. The SE sub-market has always been one of the highest concentrations of industrial product for the Austin area.  Of the 800,000+ SF of warehouse construction, 80% of it was done in the Southeastern part of the warehouse market. Developers are still looking to develop more warehouse properties with an additional 400,000+ SF of product.

Sub-Markets and concentration of inventoryAustin Land Development

The Southeast sub-market is very popular due to its proximity to Interstate 35 , Highway 71 and Austin Bergstrom Airport. The top performing sub-market by popularity for the 2nd quarter of 2017 was Hays County and Round Rock.  Shire Commercial is currently working with a developer to develop in Northeast Austin towards the Hutto sub-market where inventory is not in high supply.  Regarding inventory concentrations, if you are a Buyer and looking for warehouse properties for sale , inventory still remains fairly tight.  Stand-alone warehouses with small footprints and a yard are difficult to locate and requires a buyer to look in secondary markets or small towns typically. Pricing for warehouses will remain higher for the near-future.  Lease rates are fairly static and not moving off their highs for 2017 and we expect this to continue thru the third quarter until more inventory is put onto the market and demand winds down a bit.