Austin Warehouse Market Report End of Year 2018How did Austin's Warehouse Property Market Fair for 2018?
Vacancy for Warehouses in 2018
Vacancy rates for 2018, for the Austin warehouse market ended up at 9.4%, moving from 10.7% in Q3 and 9.9% in Q2 2018.
Absorption for Warehouses
Market report : Absorption is the same as occupancy. Occupancy was up for the end of 2018 at over 800,000SF.
Lease Rates Comparisons
Lease rates ended up for 2018 at $10.50 per sf per compared to Q2 numbers coming at $9.89 and Q3 lease rates at $10.07 psf per year. (quoted without NNN)
Warehouse Market Report Overview 2018
As 2018 ended , positive occupancy activity was seen that haven’t been seen for the past 6 years . Annually occupancy topped out over 1M square feet and vacancies as you can see above fell below the 10% mark to finish out the 2018 year. Construction wise, new inventory was put onto the market topping over 1.6M square feet of warehouse space. The 10% vacancy is seen as a ceiling for the warehouse sector in the Austin area.
Warehouse Sub-Markets Report for 2018
Tight sub-markets continued, notably in Northwest Austin that came in under 5% for vacancy rates. Lower vacancies translates to higher lease rates and higher NNN expenses. Currently moving into 2019, the base lease rates are coming in closer to $1.00 + NNN expenses translating to rent estimates of $1.20 to as high as $1.50 per square foot per month as an all in number. Staying true to the inventory of the past , the South and Southeast sub-markets have the most inventory followed by the Northeast area which would include Round Rock, Pflugerville and Georgetown. More potential growth is forecasted for the South and Southeast sub-markets as Austin and San Antonio start growing closer together.
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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