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Overall vacancy is at 8.6%, unchanged from this time last year. Overall availability (all space available regardless of whether it is vacant) is at 10.8%. Available sublease space has seen a recent increase, reaching 1.1 million sq. ft. so far this year


Market Highlights

Vacancy and Availability. Overall vacancy is at 8.6%, unchanged from this time last year. Overall availability (all space available regardless of whether it is vacant) is at 10.8%. Available sublease space has seen a recent increase, reaching 1.1 million sq. ft. so far this year. Of the 1.4 million sq. ft. of industrial space completed in the Austin area in 2020 (1.4% of the total inventory), 75.6% of that space is available for lease. In addition, 1.8 million sq. ft. is currently under construction, with 48.2% of that space spoken for. The vacancy rate for Class A properties is at 26.5%, up from the prior period at 24.9%. The Austin industrial market has recorded 3.8 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—while net absorption (move-ins minus move-outs) year-to-date is at 328,000 sq. ft., up significantly from -216,000 sq. ft. year-over-year.

Amazon signs mega-deal in Round Rock.
Amazon has leased the entire three-building, 441,225-sq.-ft. Chisholm Trail Trade Center located off I-35 and Old Settlers Boulevard. The new industrial project is scheduled for completion by the end of June. It is reported that Building 1 at 90,420 sq. ft. and Building 2 at 179,555 sq. ft. will be used to park employee and delivery vehicles. Building 3 at 180,550 sq. ft. will be used for the distribution center. In addition, in nearby Pflugerville Amazon is building a 3.8 million-sq.-ft. distribution center, which will be the biggest facility of its kind constructed in the Central Texas region in two decades; and the company also plans to open another 305,000-sq.-ft. distribution facility
this year in neighboring Buda. Amazon’s latest expansion in Central Texas is said to be driven by the increase of online shopping due to the coronavirus pandemic.

 

 

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

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