Small Warehouses for Lease and Lease Rates

 

Small-Large Warehouses for Lease and Leasing Rates in Austin

Shire Commercial is a warehouse brokerage specialist since 2004. Helping Buyers and Tenants negotiate successful deals. Latest News-Updated for June 2024, within the 3,000 to 6,000 SF range active listings may be opening up in 2 sub-markets.  Market vacancies into Q1 2024 move upwards to 8.7% overall Recent uptick due to spec deliveries +3%. Lease Rates increased over 1% while NNN’s are holding at $12.50 psf per yr on average.

Equally important, near term for 2024 shows new inventory coming on board with a forecast of stable demand. This is not  drastically changing from 2023. Expect to commit to a min term of 3-5 years depending on the sub-market. To understand the market, view active rate and vacancy data on this page using our tracking chart . Average lease rates are up.

Furthermore for tenants, current available inventory provides a tenant more choices in NE and Far North sub-markets. Primarily, vacancy will directly affect lease rates.  Low vacancies for warehouse properties results in higher base lease rates. Key tips:  If you require a smaller warehouse space (below 5,000SF) with  dock high access, they are not plentiful! Do not expect a lot of parking accessibility with small footprints because  parking ratios are typically 2-3:1,000.

Smaller Square Footage Warehouses- Locations?

To be noted, Tenants should be as flexible as possible in  when it comes to location preferences for the near term. If you are searching for a small warehouse space below 4,000SF , it does require a 3 yr minimum term for you to utilize our services . Inventory does change quickly , so if you do not see what you are looking for, then please contact us directly.  Sometimes we can uncover potentials that are not viewable on our website. Interested in further resources?

Vacancy and Rate data charts are reflected per quarter in arrears.

Austin, TX Warehouses Lease Rates and Availability June

Locations-By Submarket
Warehouse Space
Lease Space Vacancy % into Q2 2024 Distribution WarehousesAsking Rates- Lease rate per yr without NNNs
Central
East
105K
279K
7.6
5.5
$16.60
$14.00
Northeast
Round Rock
Far NE - Georgetown
927K
130K
500K

Minimum SF required for services 3,500 and 3-5 yr terms
6.2
1.0
18
$10.54
$14.87
$10.85
Northwest
Far NW- Leander and Cedar Park
0
60K
3.5
5.0
$17.00
$18.50
Hays County
SouthEast
Southwest
2.4M
430K
25K
14.5
7.0
4.8
$9.92
$9.14
$20.60
Flex Warehouses SF Q4 2023Vacancy % Q2 2024 Flex WarehousesAsking Rates- Lease rate per yr without NNNs
Central
Cedar Park
East
Far North
Northwest
370K
295K
65K
26K
0
Minimum SF required for services 3,500 and 3-5 yr terms
3.3
7.4
17
3.2
0
$17
$19

$22

Northeast
Round Rock
South
Southeast
448K
9K
66K
700K

Minimum SF required for services 3,500 and 3-5 yr terms
6.3
<1%
13.8
12
$14.75
$17.50
$21.00
$9.00

Warehouses 6,000SF +

See more data regarding Austin Warehouses for Lease. From 6,000SF to 40,000 SF +

For Sale Information- Warehouses

Austin Area Warehouses for Sale Information

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Inventory- Vacancy Overview

  • Highest Concentration of Inventory Warehouse: into Q2 2024 Hays County and SE.
  • Lowest Concentration of Inventory: Into Q2 2024 NW , SW and Round Rock

Flex Vacancy

  • Highest concentration Q2 2024 : South and Cedar Park

New Construction into Q2 2024: Primarily in Far North and Hays County,

Setting Expectations for Leasing Warehouse Space in Austin:

  • Flexibility on Locations is critical for tight industrial markets

  • Understand and convey all your warehouse requirements such as: Grade access, Power requirements, Ceiling height minimums

  • Ask about Parking and parking ratios for leasing a warehouse, as an example: 3,000SF will not provide 10+ parking spaces.

  • Do you require 100% HVAC?

  • 18 Wheeler Access required?
  • Typical Lease terms for warehouse solutions is currently 3-5 years for 2023

  • Tighter markets have higher lease rates

  • Monthly lease rates are expressed typically as Lease rate plus NNN operating expenses.

  • Ask us about pre-leasing on new construction.

Types of Warehouses in Austin

Below is a description of the types of small warehouse spaces that are located in the Austin Market.  Each warehouse property has its own attributes which you can view to see if it fits your parameters.

For more  detailed explanations on Warehouse space in Central Texas , click on the parameter breakdown button below.

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Flex Warehouse Space

Flex Warehouse space is one type of warehouse that attracts tenants who would like to occupy this property with lower rental rates than an office based solution. From an office solution standpoint, these warehouse properties provide drop ceilings, 100% HVAC and more office area than a traditional office-warehouse. Typical rent rates for these types of properties are higher than office-warehouse and start leasing at $1.20-$1.50+ psf per month without NNN expenses for 2024.  Spaces like this may accommodate potential retail businesses.

Office-Showroom Warehouses

Office Showroom Warehouse properties are primarily used for Retail like businesses. Tenants that can use an office and warehouse area with the warehouse being hot while having air-conditioned office spaces. Within the office area, an improvement can be made to allow a business to display their merchandise. Examples of this usage may be flooring, granite counter-tops, automotive accessories, art etc.. The warehouse property rental prices are in between flex warehouses and an office warehouse solution. Expect rental rates to be a bit lower than Flex space. 2024 Lease rates static to slightly up.

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Office-Warehouse Distribution Space

Office Warehouse distribution space is typically used for tenants seeking larger storage bays along with some office area.  Furthermore, these can fit in either small or large warehouse properties. In addition, when a tenant needs an office-showroom type warehouse configuration which can be accommodated by these types of properties. Typically, these warehouse solutions start with ceiling heights of 18′ and higher. Depending on the size of the warehouse, they may have dock high doors or half dock high accessible entries. Office-warehouse properties below 4000SF tend to not have dock high door accessible entries. Rental rates for 2023 are primarily NNN and start between $1.00 and $1.20 psf per month on a base lease rate (meaning without NNN expenses).

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Bulk Warehouse- Large STorage Areas

Bulk Warehouse Space- or simply stated , “Large” warehouse storage space or large warehouse distribution space that would not be categorized into small warehouses for lease. These properties are primarily utilized for storage with very little to no office are or restrooms available.  Bulk warehouse is a larger property that may start as low as 6,000SF and move up past 40,000SF , it could be used for distribution as well. This type of warehouse solution has lower lease rates than their counterparts but is not as prevalent in Austin compared to office-warehouses and flex warehouse space.