Austin Warehouse Market Overview

This page provides informative specs on the types of warehouse properties that can be found in Central Texas.  Shire Commercial provides support from Georgetown Texas to San Marcos Texas.  Sometimes clients locally may want to purchase or lease a warehouse outside of Austin, can we do that? Yes, we are licensed for the state of Texas to provide broker support throughout Texas, however we do specialize in the Austin Metro and Central Texas Area.

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Office- Warehouse

A Warehouse space that is really defined by its description. These properties have a designated area that is configured as office space and the remainder is warehouse space. Access doors can be grade level and or dock high doors. Ceiling hts vary however they typically start at 16′ in the office area and go up from there into the warehouse area. Restrooms are included in the office and sometimes in the warehouse area.

HVAC-100%? – Maybe

18 Wheeler Access?- depends on the size of the property

Power? 3 Phase yes, is some properties not all.

Visibility- Some,  predominantly in Austin it is not on the major freeways but in Industrial business parks.

Flex Warehouse

A good hybrid solution for tenants or buyers looking for a more office-like environment but need some warehouse.  Access doors can be dock high and or grade level doors. Restrooms are included in the office and sometimes in the warehouse area. Ceiling hts vary however they typically start at 16′ in the office area and go up from there into the warehouse area.

 

HVAC 100%? – Yes, typically

18 Wheeler Access? Yes, depends on the size of the property

3 Phase Power?- Yes in some properties , not all

Lease rates: higher than others

Visibility? Some, predominantly in Austin it is not on the major freeways but in Industrial business parks.

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Bulk Warehouse

Simple storage facility, warehouse areas are hot typically.

18 Wheeler Access- Yes, with large space , truck courts

Lease Rates: Cheapest of the warehouse solutions

Office area- None

Larger Warehouse Space typically 15,000+SF

 

 

Visibility? Industrial Business Parks typically versus a standalone solution

More Austin Warehouse News Tidbits

Q3 2019: New construction has softened a bit , showing developers are currently constructing less warehouse inventory moving into Q4 2019.  Citywide lease rate averages have remained flat to slightly down.  The most popular product demand wise is for office-warehouse, Flex warehouse demand has lessened.

Office-Warehouse and Distribution for Q1 2019:  Lease rates overall for Northeast Austin are up approximately 1/2 percent, this sub-market is for the Round Rock and further east areas.  Growth rates have been reported over 3% for this area. The only area that has moved lease rates up higher is the North Central warehouse market in Austin. Projections moving into 2021 are as follows:  5% of the new construction is expected to be delivered thru 2021 and vacancy will come in just under 13%.

Southeast Warehouse Market: Of the 8 markets in Austin, the SE represents the highest inventory of all the markets represented.  Vacancy rate projections are below 6% for 2019, between now and year end lease rates are expected to increase over 3% with another 3% increase in lease rates for 2020 to 2021.

Central Austin:  This sub-market has has the lowest levels of vacancies since 2009 with no new inventory slated to hit the market this year.  Projections for development are slated in 2020-2021 , rates of occupancy are not forecasted to have significant impact on the office-warehouse market.

Understanding your Warehouse Needs

Concessions are up to market conditions and we strive to help our clients navigate the sub-market’s ins and outs to determine what is viable. Below are the fundamentals to think about as you get ready to lease or purchase a warehouse property in the Austin Area.  Check out our charts on our HomePage of current lease rates for warehouses for detailed information on base rates without NNN expenses included.

Determining what your warehouse property needs are critical because concessions are about trade-offs and value to the buyer or tenant.

  1. Determine what your must haves are, things you cannot give up in a negotiation such as power requirements, door access, 18 wheeler access , 100% HVAC etc.
  2. Determine up-front what is your flexibility like?  In tight supply markets maximum flexibility is required when it comes to location preferences. Can you give something up to gain something else?
  3. Outlying areas generally have better sales pricing and lease rates than warehouse properties near or closer to downtown Austin (CBD).

 

 

Ready to Move Forward?

Are you ready to move forward? If you feel you understand the Warehouse market  as well as a broker and can negotiate your own deal with market knowledge, then you probably do not need a Broker’s assistance representing you as a Buyer or a Tenant.  This means you will need to contact a listing agent who represents the property .  Advantages of being represented? When a Buyer or a Tenant is represented, there is a fiduciary responsibility to that Client and not to the Landlord or the Seller.  Getting great service is an experience and it isn’t something that is tangible.  Results are what counts and testimonial proof, you can see what our clients say about us by clicking the button below.