Austin Industrial vacancy rate at 6.6%.
VACANCY AT 6.6% Overall vacancy is at 6.6%, down 170 basis points from this time last year at 8.3%, while available sublease space also decreased 27% from roughly 2.0 million sq. ft. in April 2020 to 1.5 million sq. ft. in April 2021. However, current sublease space is still only 7% of total available space. Of the 12 million sq. ft. under construction, 83% has been spoken for—which includes the 4.5 million-sq.-ft. Tesla Gigafactory, and the 3.8 million-sq.-ft. Amazon Distribution Center. Twelve properties have delivered so for in 2021 totaling 586,000 sq. ft. The vacancy rate for Class A properties has plunged to 12.9%, down from the prior period at 23.8%. The asking price for industrial properties is currently at an average monthly rate of $0.91 per sq. ft., down slightly from this time last year at $0.92 per sq. ft. These elevated rates are due primarily to the new product added to the market.
BSU RELOCATES HQ TO AUSTIN A new manufacturing facility is breaking ground in Austin. SpaceX, the aerospace manufacturing and transportation company owned by Tesla CEO Elon Musk, is emerging in Austin, according to job postings on the company’s website. SpaceX hasn’t announced where the new manufacturing facility will be located or if there is a connection to the Tesla Gigafactory under construction in southeast Travis County. That manufacturing facility is scheduled for completion before the end of 2021.
AUSTIN ECONOMIC INDICATORS The Federal Reserve Bank of Dallas reported the Austin economy accelerated in March. The Austin Business-Cycle Index grew at a robust rate, the unemployment rate declined, and first-quarter jobs were healthy in most sectors. COVID-19 hospitalizations increased briefly in late April but have declined since. Existing-home sales rebounded in March after weakening sharply in February, and regional consumer spending continued strong.
Director of Research
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