Austin Industrial Property

How much does it cost to lease or purchase an Austin industrial Property? Year 2020

Industrial Properties in Austin | How much it costs

How much does it cost to lease an industrial property in Austin? Let’s start off by saying the obvious: industrial equals warehouse type properties for this discussion. Is there a rule of thumb for 2020 regarding the cost to lease a property? There are a few types of warehouse properties that are available in the Austin area. They come under the following categories.

Flex Warehouses       Office -Warehouses   Distribution Warehouses  Bulk Warehouses

Depending on the sub-market, will directly impact the lease rates of the specific building.  We can say with confidence that most “Flex warehouses” in Austin are leasing at $1.00 per square foot. The lease rate is quoted without triple net expenses added.  So be sure to always add the triple net expenses onto the base lease rate.  Office- Warehouse properties are typically not as expensive. They range from $0.70 cents to $0.90 cents per square foot plus triple net expenses.




 2020 Distribution Warehouses

Size matters with industrial distribution properties. For the most part, these properties are larger starting at approximately 10,000SF.  Not all distribution warehouses are large of course it depends on your product. Most of the large distribution warehouse properties are in Southeast, South and the Northeast area. Lease rate wise they are similar to office-warehouse pricing.$0.70 to $0.90 cents per square foot per month plus triple net expenses.


Industrial Property Overview in 2020

The overall picture in 2020 for the first half of the year remains fairly firm with vacancy at 10%.  It is hard to predict what will happen further into the year. However, if previous years are any indicator it should remain with strong demand. Nobody ever really knows what is going to happen to the industrial market. It is predicated on econonomic factors as well as geo-political factors in todays world.

Bulk Warehouses for 2020

  • Lowest Lease rates of the industrial family
  • Tenant who need dock high access primarily and no office – only bulk storage.
  • These can be newer construction
  • Bulk warehouses are larger properties. Minimum square footage for these types of properties starts at 15,000 SF and up.
  • Lease rates without triple nets can be anywhere between $0.30-$0.50 cents per square foot.
  • Because these have no build out in the space, they are less expensive to lease.