Austin’s industrial market starts the year with positive movement in construction
Austin’s industrial market posted 382,166 SF of positive net absorption in the first quarter of 2018. There were a few sizeable tenants that moved into large blocks of space in the first quarter of 2018, including XPO Last Mile occupying approximately 57,500 SF at 15400 Long Vista Drive in the North submarket.
There are at least 10 blocks of space that will be occupied by new tenants, in Q2 2018, with over half a million square feet of new product set to deliver in Q2 2018, and 239,673 SF of that is builtto-suit.
Austin’s citywide average rental rates increased marginally over the quarter from $10.70 per SF NNN to $10.77 per SF NNN. The average warehouse/distribution rental rate also increased slightly to $8.65 per SF NNN from $8.63 per SF and the average citywide flex/R&D rental rates followed suit and increased to $13.43 per SF NNN from $13.12 average rate in Q4 2017.
In the first quarter, Austin’s industrial market had four buildings deliver and six new buildings began construction. Two of those new buildings are being built at Springbrook Corporate Center. The two new warehouse buildings total 258,280 SF.
1,066,107 square feet of industrial supply was under construction, including six new project totaling 837,441 square feet. Settlers Crossing, located at 900 E OId Settlers Boulevard in the Round Rock submarket, accounts for two of the new buildings under construction. These buildings are set to deliver in Q3 2018.