Austin Warehouse Space Q2 2018 Market Report

As Austin’s demands for warehouse space stays steady moving into Q2 2018 , expansion of industrial property is forecasted to continue near term.  In the first quarter, 800,000 SF of new warehouse space has been completed  compared to 124,000 square feet of warehouse space being completed in 2nd quarter.  Most of the recent demand is for distribution warehouse inventory and not for flex warehouse type solutions.  Most of this activity is in the Northeast market which consists of Round Rock bringing in more than 25% of the new warehouse space inventory online.

Approximately 2/3 of the warehouse space product for Q2 2018 is being marketed as warehouse distribution property.

Q2 2018 Warehouse Fundamentals Warehouse interior

Q2 2018 Austin Warehouse Market fundamentals were up a bit in the first quarter to over 10 % vacancy, but have dipped below that 10% vacancy rate to 9.9%. Lease rates have moved upwards slightly at approximately $0.02 cents per square foot per year mostly driven by Flex warehouse space. Positive absorption was positive in Q2 2018 at over 82,000SF for warehouse distribution space. Flex warehouse space absorption was down compared to the first quarter. Overall demand came in at over 550,000 square feet for the first half of 2018 in Austin. Lease rates for Warehouse distribution have remained relatively the same for the past 3 years  however, slightly down from the peak of 2015.  For the latest updates on lease rates updated every 30 days please visit our landing page, we start at 3500SF and higher for tenants looking to lease warehouse property.