Nov 22, 2016
Colliers: Austin industrial market “strong as ever”
AUSTIN – The city's industrial market continues to tighten up, reports Colliers International in its third quarter 2016 report. Asking rents are increasing, vacancy rates are still falling, and construction is...
AUSTIN – The city’s industrial market continues to tighten up, reports Colliers International in its third quarter 2016 report. Asking rents are increasing, vacancy rates are still falling, and construction is strong.
Average citywide rental rates increased over the quarter from $9.83 to $10.58 per sf triple net (NNN), the highest it has ever been.
Warehouse-distribution rental rates decreased slightly to $7.89 per sf NNN, while citywide flex-R&D rental rates jumped from $11.29 to $13.39 over the quarter.
The citywide average vacancy rate dropped from 7.2 to 6.2 percent over the quarter.
More than one million sf of industrial supply was under construction in the third quarter, including seven new projects totaling 409,595 sf.
Although nearly 1.1 million sf of industrial space was delivered, absorption made a "huge jump" in the third quarter—1.5 million sf of positive net absorption, up from 112,373 sf in the second quarter.
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