Subscribe to Our Research Content

  • This field is for validation purposes and should be left unchanged.

Share

Samsung Austin

Download the PDF

 


Overall vacancy is at 6.6%, down 180 basis points from this time last year at 8.4%, while available sublease space also decreased 10% from roughly 872,000 sq. ft. in January 2020 to 788,000 sq. ft. in January 2021. Samsung Austin is proposing to build the plant on 640 acres where it has existing operations and 3,000 employees.


Market Highlights

Vacancy rate drops to 6.6%. Overall vacancy is at 6.6%, down 180 basis points from this time last year at 8.4%, while available sublease space also decreased 10% from roughly 872,000 sq. ft. in January 2020 to 788,000 sq. ft. in January 2021. However, current sublease space is still only 8.5% of total available space. Of the 12.4 million sq. ft. under construction, 80% has been spoken for—which includes the 4.5 million-sq.-ft. Tesla Gigafactory, and the 3.8 million-sq.-ft. Amazon Distribution Center. One property has delivered so for in 2021, a 14,400 sq. ft. warehouse and home to tenant Third Coast Coffee. The vacancy rate for Class A properties has plunged to 13.1%, down from the prior period at 23.8%. The asking price for industrial properties is currently at an average monthly rate of $0.95 per sq. ft., up from this time last year at $0.86 per sq. ft. due primarily to the new product added to the market.

Samsung Electronics’ proposed $17 billion plant. If Samsung chooses Austin, construction could start in June 2021, for the gigantic manufacturing operation. Samsung Austin is proposing to build the plant on 640 acres where it has existing operations and 3,000 employees. The expansion would support 1,800 additional jobs at full build out, according to recent filings with the state. The proposed 7 million-sq.-ft. plant would be the largest industrial facility in Austin and one of the largest in Texas.

Austin Economic Indicators. The Federal Reserve Bank of Dallas reported that Austin’s unemployment rate fell to 5.7% in December compared to the state’s jobless rate of 7.2%, and the nation’s rate at 6.7%. Fourth-quarter job growth was positive in most sectors with financial activities leading the job expansion (30.8%, or 4,740 jobs), followed by manufacturing (18.7%, or 2,700 jobs) and construction and mining (15.9%, or 2,640 jobs). While job gains have been broad based since May, they have not been large enough to offset the losses in March and April as net payrolls decreased by 34,415 in 2020. However, all industries except government saw net positive growth in 2020.

Leta Wauson
Director of Research
leta.wauson@naipartners.com
tel 713 275 9618

We Want to Hear From You

  • This field is for validation purposes and should be left unchanged.