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