Colliers: 1Q2016 Austin Industrial Market continues to grow

​​​​​AUSTIN-ROUND ROCK - Austin’s industrial market continues to grow despite a slight rise in vacancy and a decrease in positive net absorption over first quarter 2016, according to Colliers​ International Austin​.

Citywide average vacancy rose to 7.7 percent and positive net absorption reached only 13,890 sf, but industrial space under construction rose again in 1Q2016 to 1.8M sf.

Austin’s citywide average rental rates also increased from $9.30 per sf NNN to $9.54 per sf NNN.

Citywide warehouse/distribution rental rates increased over the quarter to $7.32 per sf NNN and Flex/R&D rental rates increased to $11.32 per sf NNN.

Buildings that delivered in 1Q2016 include Harris Ridge Business Center Building 5, a 153,000-sf building in the Far Northeast Submarket.

Currently, 1,839,297 sf of industrial supply is under construction, including the new 855,000 SF Amazon distribution center and the 500,000 SF Capitol Wright distribution center.

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