Austin Small Warehouse Leasing Help

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Small Warehouse Overview-For Tenants- Tips, Blogs and Resources

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!

Here is “an overview look” at small warehouse space in Austin that includes many blog posts relating to warehouse, flex space and other industrial property information.  The more information you have as a tenant, the better off you are because you will stay more informed than others. 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.

  • Research this page for additional information such as: Blog Post articles regarding warehouse properties as well as successful examples of transactions completed for tenants.

Small Warehouses for Lease Articles and Information

A small warehouse  for lease is categorized as a warehouse property that has less than 4,000 square feet available as you can see by the chart. This information is updated frequently so it is a fairly accurate snapshot of small industrial properties for lease, things change quickly so if you do not see what you are looking for please contact us to help you find the right deal.  Clients benefit from over 9 years of experience and a more effective and efficient response , unlike other brokers you get specialization for warehouse leasing and purchases in Austin.

Lease Warehouses< 6,000 SF in AustinLease Warehouses > 6,000SF

Click the orange buttons to see detailed listing data on large warehouses for lease or small warehouse properties for lease in the Austin area. You can also view examples of successful transactions for our tenant clients.

Austin Warehouse Transactions Done by Shire Commercial

 


Austin Warehouse Space | Q2 2018 Market

Posted by on Jul 9, 2018 in Commercial Real Estate Austin, Small Warehouse Market Monthly Report, Warehouse space for lease | 0 comments

Austin Warehouse Space Q2 2018 Market Report

As Austin’s demands for warehouse space stays steady moving into Q2 2018 , expansion of industrial property is forecasted to continue near term.  In the first quarter, 800,000 SF of new warehouse space has been completed  compared to 124,000 square feet of warehouse space being completed in 2nd quarter.  Most of the recent demand is for distribution warehouse inventory and not for flex warehouse type solutions.  Most of this activity is in the Northeast market which consists of Round Rock bringing in more than 25% of the new warehouse space inventory online.

Approximately 2/3 of the warehouse space product for Q2 2018 is being marketed as warehouse distribution property.

Q2 2018 Warehouse Fundamentals Warehouse interior

Q2 2018 Austin Warehouse Market fundamentals were up a bit in the first quarter to over 10 % vacancy, but have dipped below that 10% vacancy rate to 9.9%. Lease rates have moved upwards slightly at approximately $0.02 cents per square foot per year mostly driven by Flex warehouse space. Positive absorption was positive in Q2 2018 at over 82,000SF for warehouse distribution space. Flex warehouse space absorption was down compared to the first quarter. Overall demand came in at over 550,000 square feet for the first half of 2018 in Austin. Lease rates for Warehouse distribution have remained relatively the same for the past 3 years  however, slightly down from the peak of 2015.  For the latest updates on lease rates updated every 30 days please visit our landing page, we start at 3500SF and higher for tenants looking to lease warehouse property.

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.

Austin Industrial Market | Q2 2017

Posted by on Aug 7, 2017 in Commercial Real Estate Austin, Warehouse space for lease | 0 comments

Austin Industrial Market  | Q2 2017

Austin’s industrial market is still fairly tight , vacancies did move upward since the 1st Quarter of 2017. We are still hovering below 9% vacancy rates. In some sub-markets the vacancy rates are as low as 2.2% , currently the Northwest area of Austin has the lowest vacancies. We tend to get a lot of calls regarding industrial space that is below 4000SF and a prospective tenant wants a dock high and 18 wheeler access.  For tenants looking for this type of solution, it will be a tough haul. Within the Austin Industrial Market, a warehouse that is built with a small footprint below 4000SF will not have 18 wheeler access with a dock door. Our advice on this would be to change your parameters.

Industrial Market pricing

Leasing rates for the Austin Industrial Market are staying unchanged for the most part heading into Q2 2017, with average rates coming in around $10.50/psf /yr or $0.88 cents per square foot per month without NNN expenses included.  Expect most of the industrial properties to be prices into the high $0.80 cent range to $1.10 ranges for the near future with expenses. It always depends on the vacancy and sub-market you are interested in, it is not a static number. Also it is always important to keep in mind as a tenant or a buyer, that the market you are interested in is the market you should focus on, comparing your market if you are out of state or in a different city is a futile exercise and really doesn’t have a bearing on what is going on in the target market you are interested in.  If you are budget constrained, then you should look at markets that support your expense forecasts for rent and not make the mistake of expecting the Austin Industrial Market to change for you.  When demand is high and supply is low , we will always have higher rates for leasing and purchases of warehouse properties in Central Texas.Warehouse update Texas

Warehouse Construction

The highest concentration of warehouse product will be in South East Austin over 600,000SF of new construction being developed. There is a push in the Austin industrial market for new inventory and with the current positive absorption in the near term, it is predicted to be stable without a big correction, however nobody ever really knows how the market will move timing wise.