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.