Net absorption rebounding back to black quarter-to-date. New supply completed during 2017 stands close to 2.6 million sq. ft., with year-to-date net absorption at -35,203 sq. ft., although quarter-to-date net absorption is rebounding from four straight quarters of negative net absorption to positive 482,415 sq. ft. The current amount of space under construction is 1.1 million sq. ft., with 80% of that space available for lease.
Investment sales volume down year-over-year. RCA data reports year-to-date industrial sales volume in the Austin area at $289.4 million, resulting in a year-over-year change of -26%. The buyer composition is spread equally with 30% institutional, 24% private, 24% public listed/REITs, and 21% cross-border. The most recent significant year-to-date transaction in the local market took place in August: the acquisition by TA Realty of a three-building, 322,600-sq.-ft. industrial/flex property, Freeport Tech Center South, at 6320 E. Stassney Lane, in southeast Austin, from HPI Real Estate.
Innovation Business Park breaking ground. The City of Hutto in the Georgetown/Round Rock submarket is ready to break ground on Titan Development’s Innovation Business Park. Initial construction on the project will include a 100,000-sq.-ft. spec building projected to be delivered in nine to 12 months, and will be made available for occupancy Spring 2019. The complete plan for phase one of the $100 million speculative development calls for the construction of 800,000 sq. ft. of total of building space.
Economy grows at a strong pace in September. The Austin economy expanded at a robust pace in September. Austin jobs grew at a 3.0% annualized rate over the third quarter with a notable exclusion of professional and business services, which fell primarily due to declines in administrative services. The local unemployment rate fell to 2.7%, well below the 4.0% Texas and 4.2% U.S. averages.
Director of Research
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