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