Austin’s industrial market is strong and steady

Austin’s industrial market posted 226,753 SF of positive net absorption in the third quarter of 2018. Activity levels remained high as a large number of sizeable tenants occupied significant blocks of space over the quarter, including Ride Right, a transportation company, moving into approximately 24,000 SF at 817 West Howard Lane Building A in the Northeast submarket.

Looking forward, twelve blocks of space over 10,000 SF will be occupied by new tenants in the last quarter of 2018. One of these tenants is TS Distributors, who is taking approximately 42,000 SF at 3306 Longhorn Boulevard in the North submarket.


Austin’s citywide average rental rates did not fluctuate over the quarter and remained at $10.41 per SF NNN. The average citywide flex/R&D rental rates increased to $13.57 per SF NNN up from the $13.16 and the average warehouse/distribution rental rate also rose slightly to $8.44 per SF NNN from $8.22 per SF NNN.

In the third quarter, Austin’s industrial market had four buildings deliver, and four new buildings begin construction. Two of the new buildings under construction are Parmer 7.2, and 7.3 located at 507 East Howard Lane, in the Northeast submarket, which makes up 262,850 SF of the 449,450 total SF new construction started this quarter.

In all, 1,663,549 square feet of industrial supply was under construction, consisting of twenty projects. 237,380 square feet of this construction is pre-leased, including the 129,600 square foot build-to-suit project at Met Center II, Building 10. The inventory set to deliver in the fourth quarter of 2018 includes four buildings at Heritage Crossing in the North submarket. Buildings 5 and 8 at Heritage Crossing are already 100% leased, totaling 175,420 SF. 

Q3 2018 Highlights

Q3 2018 Austin Industrial Infographic 2  

Q3 2018 Austin Industrial Front Page Screenshot




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