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.

 

 


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 Market | Q1 2017

Posted by on May 9, 2017 in Austin warehouse space for lease, Small Warehouse Market Monthly Report, Warehouse property for Sale, Warehouse space for lease | 0 comments

Austin Warehouse Market | Q1 2017

Here is quarterly report for the Austin warehouse market at the end of March 2017.  Current vacancies have remained relatively the same at 7%  with occupancies continuing to stay very high in the Austin Texas and Central Texas area.  Market fundamentals remain strong and average asking rents have increased since last quarter up $0.12 cents per square foot per year.  Demand continues and supply of  warehouse properties under 5000SF  has become even tighter. As a tenant looking to lease a property in the Austin warehouse market, maximum flexibility is required. Landlord’s today are looking for longer term deals, 2 yrs will not get much attention depending on the sub-market in which the warehouse property is located. Moving forward, near term projections are more of the same however with new warehouse properties on the market supply should become much better depending on the footprint that a tenant is looking for.

For Sale Warehouse properties for Q1 2017 , remains tight and the best sales prices are in the tertiary sub-markets. More details on : For Sale Properties

Warehouse Construction Projections

With demand continuing for 2017, construction is on the way currently with projections of 1M square feet of space , in Q1 2017, approximately 550,000SF of warehouse space was completed with 50% of new warehouses being supplied to the Southeast sub-market which next to the Northeast area has the highest concentration of warehouse properties in the Austin area.  The Northwest Austin sub-market with one of the lowest vacancies has approx 200,000SF of new construction taking place with the NE area coming in at 110,00 SF.

 

Austin Warehouse Market |Q2 2016

Posted by on Jul 22, 2016 in Austin warehouse space for lease, Small Warehouse Market Monthly Report, Uncategorized, Warehouse space for lease | 0 comments

Austin Warehouse Market | Q2 2016

Here is a summary of the Austin warehouse market for the 2nd quarter in 2016, it is looking like we are headed for a 20 yr low for vacancies. Current vacancy rates in the Austin area are coming in at below 7 percent currently at 6.7%. There is alot of corporate interest in Austin and the city’s incentives to get the attention of large corporations. Most warehouse spaces that are being occupied are smaller in size below 30,000SF.

Lease Rates for Warehouse Properties

Austin’s warehouse leasing rates moved upward to $0.04 cents per sf over the last quarter of 2016. Vacancy remains low and demand remains high, flex warehouse space is still an alternative to more expensive office leasing rates if the tenant can utilize the flex space efficiently like an office.  The majority of the occupancy was in flex warehouse space which currently is going at an average of $1.10 psf without NNN expenses.  The East side and Round Rock had the most vacancy and subsequent occupancy occurred in those sub-markets more so than other sub-markets. Austin is on pace for 6 consecutive quarters of positive occupancy.

Construction Warehouse update Texas

Construction for new products is mostly in the SE sub-market, which will be between ABIA and the urban areas. Pre-leasing is popular currently and if you are a tenant looking for warehouse space on new construction pre-leasing is a good strategy due to current market demands on these properties. High growth in Hays and Williamson County are putting pressure on finding suitable warehouse space.  Austin does run the risk of losing business if supply cannot keep up with the demand.

Warehouse Update

Posted by on May 5, 2016 in Austin warehouse space for lease, Small Warehouse Market Monthly Report, Warehouse property for Sale, Warehouse space for lease | 0 comments

Warehouse Property | Texas Triangle Dallas Houston San Antonio

With the exception of San Antonio, the Texas Triangle reached it’s lowest point of new construction since the 1990’s. The following is a warehouse update on what is going on in the Texas Triangle area.  Austin and Dallas hit their lows for warehouse properties in the months of May and October in 1992 with Houston to follow in 1993. The most construction for warehouse properties is currently in San Antonio, whereas San Antonio did not hit its low for warehouse properties until February 2011.

Warehouse growth rates come in at 52% from January to November 2015 for San Antonio followed by Austin with 40%. Warehouse properties come in at the most volatile type of commercial property followed by office and then retail. The exception to this general rule of thumb would be Houston that has higher volatile markets in office properties.  Austin registers the lowest volatile office market regarding construction.

Peaks and Troughs

Construction as a rule runs in alignment with booms and busts in the economy , or simply stated supply and demand. For Austin as an example there are always greys, although demand is very high for warehouse property , construction is not as robust because the larger companies and not providing as much demand as the smaller end user or medium sized businesses.  Each construction cycle is a bit different from previous periods due to the external factors imposing their pressure on the industry at the time. Typically a contraction will last longer than an expansion phase. The key here is to watch based on history that lower construction activity is preceding a recession period, is a bit premature to determine if the Texas economy will continue to slow in 2016, however indicators do show a slow down coming.

 

Austin Warehouse Market Update

Posted by on Apr 28, 2016 in Austin Real Estate News, Austin warehouse space for lease, Commercial Real Estate Austin, Warehouse property for Sale | 0 comments

Austin Warehouse Market Update – May 2016

The Austin warehouse market continues to drive vacancies lower and demand remains strong.  Moving into the 2nd quarter of 2016, the warehouse market in Austin to move lower by another 1%. Currently the warehouse vacancy rate is at 7% , this is level that has not been seen since the tech explosion in the late 90’s. Of all the sub-markets in Austin three of them have vacancy rates below 1% thus almost having 100% occupancy. If construction does not take off with more product the rental rates for warehouse space will be at a premium with very little leverage unless a tenant is willing to provide a 5 yr term for some concessions.

What is Under Construction?

At the close of the first quarter of 2016, there were no new warehouse spaces in Austin delivered to the market. CurreNorthwest Austin Warehouse Spacently, there is about 400,000SF of new developments for warehouse property.  With oil prices tanking  manufacturers are battling with higher lease rates than have been seen in the past 5 years within the Austin Market. Austin typically is a destination location for warehouse properties as opposed to a hub for big companies, therefore there is not a huge incentive for developers to add on warehouse property like other cities in the USA. Instead of building more warehouse properties, office buildings are being constructed to cater to the white collar employment demographic of Austin.

To say the least the new development market for industrial properties in Austin is subdued compared to the activity.