AUSTIN – Colliers International reports that the local industrial market took another hit to its net absorption in second quarter 2017, posting 226,896 sf of negative net absorption.
Losing a handful of large block tenants didn't help, according to the firm's quarterly market report. Still, despite the drop in absorption and increase in vacancy, rental rates throughout the market increased.
Looking forward, there are at least 20 smaller blocks being filled by tenants in Q3 2017. There is also over half a million sf of new space set to deliver this quarter with another half a million set to deliver in the fourth quarter.
Austin’s citywide average rental rates increased over the quarter from $10.70 per sf triple net to $11.08. Warehouse/distribution rental rates increased slightly to $8.27 per sf triple net from $8.24. Citywide flex/R&D rental rates increased to $14.09 per sf triple net from $13.86 average rate in Q1 2017.
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