Austin Warehouse News First Quarter 2020
Central Texas Warehouse property news update - market data overviewCOVID19- Warehouse News for First Quarter
The beginning of the first quarter of 2020 we didn’t see the pandemic coming. As the first quarter progressed the dynamics of the world changed. This includes lock-downs and stay at home orders. Beginning in 2020, construction -supply activity made changes to lease rates bringing them down about $0.25 cents psf. Vacancy rates increased as well from 10.5 to 10.8%. 20% of new construction was pre-leased in South Austin.
We do expect the fundamental numbers to change at minimum thru the third quarter of 2020.
Construction First Quarter 2020
Starting off the new year construction of warehouse properties continues.
Overview- Warehouse News First quarter 2020
- 1.2M SF of new construction
- Zero pre-leasing activity
- Forecast near term – down
- Recession potential into 2021
Covid-19 Affects-Predictions
Job losses, sharp declines in GDP
- Warehouse leasing shall become a tenant’s market
- Landlord market ends for at least 1 yr
- Because of the unknown “wave potentials” of Corona Virus it is uncertain how long recovery will take.
- If your lease is expiring soon (3-6 mos), contact Shire Commercial for renewal options now.
- Potentials exist for modifications to existing leases dependent on recession time periods.
Covid-19 Affects-Predictions | Warehouse news First Quarter 2020
Job losses, sharp declines in GDP
- Warehouse leasing shall become a tenant’s market
- Landlord market ends for at least 1 yr
- Because of the unknown “wave potentials” of Corona Virus it is uncertain how long recovery will take.
- If your lease is expiring soon (3-6 mos), contact Shire Commercial for renewal options now.
- Potentials exist for modifications to existing leases dependent on recession time periods.
Lease re-negotiations
For tenants that have a 90-120 day expiration on their lease coming, there is re-negotiation. Depending on your situation and whether you want to stay or not? Contact Shire Commercial for help , we will work with you to understand your situation completely first.