Austin Warehouse Report Q3 2018
Here is the Austin Warehouse Report for Q3 2018 , area wise the lease rates for warehouse properties overall increased to $10 per square foot per year. Additional inventory has been added to the warehouse market in Austin. There is still approximately over 1M square feet anticipated to be delivered to the Austin market. Most new development is South in Hays County, historically it has been located in the Southeast sub-market. Overall vacancy rates have not changed much and have stayed within 80 basis points of previous quarters which were at 10%.
Continued Tightness in Small Warehouse Inventory
For buyers and tenants seeking small square footage warehouse properties, (Defined as below 5000SF) inventory will remain tight depending on the sub-market within Austin. The lowest vacancies continue to be Central and Northwest Austin. As long as demand remains high and inventory remains low, concessions and short term lease requirements will be hard to find for tenants. If you are a tenant and need warehouse space that is small, expecting a dock high or a high parking ratio is not typical for pre-exisiting inventory. Flexibility on the Buyer and tenant’s part remains the critical factor in finding the right warehouse for Clients for the rest of 2018.