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Overall vacancy is at 7.7%, up from this time last year at 6.5%, due in part to the vacant space delivered to the market in 2019—about 60% of the total 2.8 million sq. ft. completed.
Supply outpacing demand. Overall vacancy is at 7.7%, up from this time last year at 6.5%, due in part to the vacant space delivered to the market in 2019—about 60% of the total 2.8 million sq. ft. completed. Of the 1.7 million sq. ft. currently under construction, about 88% of that space is available for lease. The vacancy rate for Class A properties is at 21.8%, up from 17.7% this time last year. The Austin industrial market has recorded 5.2 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—while net absorption (move-ins minus move-outs) yearto- date is at 1.6 million sq. ft., down from 2.1 million sq. ft. year-over-year.
Costco is coming to town. It is reported that Georgetown will be getting a Costco membership warehouse within the next five years. The store will include gasoline pumps, tire sales, a pharmacy, and liquor sales. Georgetown City Council recently approved an incentives package for the store at the northwest corner of I-35 and Lakeway Drive. It will be the only Costco between Georgetown and the Dallas-Fort Worth area, hoping to draw in consumers from Temple, Killeen, Fort Hood and even Waco. Plans include a $20 million investment constructing a 150,000-sq.- ft. store by 2025.
Tight labor market continues. Austin’s unemployment rate remained at 2.7% in October, unchanged since July. The unemployment rate for the state stayed at 3.4% for the fourth consecutive month, while the jobless rate for the nation increased to 3.6%. In the three months ending in October, Austin added jobs at a 2.5% annualized rate, or a net 6,900 jobs. The construction sector led expansion with 1,279 net jobs (8.0%), followed by leisure and hospitality with 1,555 jobs (4.6%). Professional and business services gained 1,770 jobs.
Director of Research
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