AUSTIN – CBRE's latest industrial report shows local industrial absorption was strong in second quarter 2018 with positive net absorption exceeding 82,000 sf mainly in warehouse/distribution.
At the close of the quarter, industrial developers continued their expansion of the industrial market with 124,476 sf of new product.
Market fundamentals improved during the second quarter as vacancy again dipped below 10 percent, what CBRE considers the sweet spot for Austin developers.
The citywide average annual asking rent increased $0.02 per sf from the first quarter to $9.89 per sf. It was largely driven by flex/R&D product.
CBRE Research is currently tracking over 1.8 million sf of user demand in the Austin market for both flex/R&D and warehouse/distribution space.
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