Austin Warehouse Market Q1 2021
Here is the Austin Warehouse Market Report for Q1 2021.
Demand has continued, with the pandemic of 2020 have very little effect. Therefore, there still exists an impetus for development and new construction.
There are currently 19 industrial warehouse projects on the market into Q1 2021. In addition, 4 new developments have been added. The Austin Warehouse Market has seen 27 consecutive quarters of positive demand. However, lease rates for warehouse properties has remained static for now.
Tenant Demand and vacancy
Occupancy has continued to grow and vacancy rates have dipped below 8% for Q1 2021. Growth is being hedged against COVID-19 going away to support the economy. Expansion projections in theory state that there is money on the sidelines that is ready to be put to use.
Forecast moving forward into 2021.
We do expect the demand to continue, however Austin has become more and more expensive. For a company to be a player in Austin, they have to be willing to pay higher lease rates and expenses. If you have a business that is moving from out of town, do not expect “great deals”. The warehouse market in Austin will continue near term to run with premiums. Therefore, companies have to pay to play here. It is important to understand a market outside of the Austin area, has no bearing on this market. We have seen clients move , then stall or decide not to move to Austin.