Q3 2020 Warehouse ReportSurprising results for warehouse properties in Austin during the COVID pandemic
Warehouse update for vacancies Q3
Vacancy rates for warehouse properties moved “lower” in the third quarter to below 10% in Central Texas.
Absorption for Warehouses
Market report : Absorption was positive upwards of 600,000SF. 25 quarters of positive absorption.
Lease Rates Comparisons
Lease rates moved upwards overall into the third quarter of 2020. Monthly asking rates moved up $0.24 cents psf.
Austin Warehouse Update Overview Q3
Tenant demand for warehouse space has not diminished in Central Texas. Distribution space being the leader for types of property. Labor markets show recovery about half of the job loss during the intial pandemic scare. There was a 33% decline in the second quarter overall in the US economy. Development pipelines are continuing to add approx 1+M square feet onto the Austin market.
Warehouse Sub-Markets Report Q3 2020
Tight sub-markets continued, notably in Northwest Austin are still under 5% for vacancy. Lower vacancies translates to higher lease rates and higher NNN expenses. The highest vacancies tend to run in the same sub-markets which are South and Hays County. Also Round Rock still has vacancy above 10 % coming in at 13% as compared to Hays County which is over 2X the vacancy rates. This is due to location demand for businesses wanting to be closer to the Austin area. COVID Solutions regarding warehouse properties article.
Shire Commercial has been helping Clients lease and purchase warehouse properties in the Austin area from Georgetown to San Marcos Texas since 2004. Our clients receive an old school approach with consistent communication, and professionalism. Now that you know how the industrial market performed, why not give us a try to set your business up in a new warehouse property in Austin? Call us or email us today!
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