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Vacancy continues to fall. Nearing the end of the third quarter, the vacancy rate dropped 10 basis points to 6.4%, compared to this time last month at 6.5%. Occupancy of the 1.1 million sq. ft. delivered to the market year-to-date stands at 60.7%, and of the 40 properties with 2.6 million sq. ft. currently under construction, 88.5% of that space is available for lease. Year-to-date net absorption totals 1.5 million sq. ft., while there have been 327 deals accounting for 2.8 million sq. ft. of leasing activity. The average asking rate of renting industrial space increased $0.26 to $10.00 per sq. ft. on a triple net basis from $10.26 this time in August.
Year-to-date through August investment sales up. According to Real Capital Analytics, investment sales of industrial properties in the Austin area totaled $479.0 million, a 72.3% increase from one year ago. Private capital continues to be the most active buyer type for 2018, comprising 78.0% of Austin’s total sales volume, followed by cross-border buyers at 16.0% and institutional investors of the remaining 6.0%.
Top 10 sale completed by NAI Partners. NAI Partners Austin recently arranged the sale of a 57,500-sq.-ft. industrial property located at 10611 N. I-35 in the Northeast submarket – the 8th-largest industrial sale of the year in Austin. The seller, Apollo Paint and Body Shop, Inc., primarily operates in the body shop, automotive business industry.
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