Q3 2016 Austin Industrial Market Report
Austin’s industrial market is as strong as ever
Austin’s industrial market continues to tighten up. The asking rents continue to increase, the vacancy rates are still falling and construction is strong. The average rental rate increased, yet again, hitting $10.58. The vacancy rate dropped 1% from last quarter and sits at 6.2%. There is over one million square feet under construction and almost half of that is new construction. On top of all of these factors, positive net absorption jumped to 1,507,758 square feet.
Austin’s citywide average rental rates increased over the quarter from $9.83 per SF NNN to $10.58 per SF NNN, the highest it has ever been. Warehouse/Distribution rental rates slightly decreased to $7.89 per SF NNN, while Citywide Flex/R&D rental rates jumped from $11.29 to $13.39 per SF NNN over the quarter.
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