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
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.
“We were in the process of looking for a new office and warehouse space for our growing business. We then found Steve Shire who was very pleasant to work with. He helped us view alot of properties and we found a great one th… Read more
Stacy Bishop
“When I needed to find office-warehouse flex space in a rush, Steve Shire was able to get the job done. I gave him just 1 week to find me properties to look at with certain features. He came through for me, and on the fourth … Read more
Mark Tarbet
We have a very unique business and we needed a unique space. Steve hung in there with us for over a year. This was our first commercial purchases and he guided us through the process with patience and enthusiasm. Now if only … Read more
Warehouse purchase
Mr Shire from the onset was attentive to my needs and responded quickly to all my inquiries. I am happy to report that he was able to help me in locating the perfect space for my business. The lease was signed recently and t… Read more
Capt Art Cardenas
“Steve spent a great deal of time locating options and making appropriate contacts for us. Steve is professional, knowledgeable, trustworthy and is easy to work with. We felt that we were his top priority.”
Lynelle and Steve Sylliaasen
“You are absolutely one of the best agents to work with” – Marilyn Van Uum-Independence Title
Independence Title
After realizing that locating and leasing commercial property on my own was not going to be easy or fruitful I was lucky enough to contact Steve. From start to finish the process was thorough, thoughtful, artfully explained a… Read more
Grant Sible
Warehouse Purchase – Retailer in Austin Location: N Lamar , SF : 6,260 SF Time to complete 3 Months
This purchase required creativity and an outside of the box approach because the Buyer-Owner could not obtain direct fin… Read more
Warehouse Purchase Completed
“Steve is a great agent to work with. He is very patient and professional. He worked with us as our buying agent for some warehouse units. The process lasted longer than a year. Steve has been following up with any questi… Read more
Sylvia Smelcer
This property was listed by Shire Commercial, the seller had moved out of the complex and was renting to a tenant that eventually vacated the office condo in Cedar Park. The property was marketed with a Virtual Tour from Shir… Read more
