Austin Industrial vacancy shrinks to lowest rate in five years.
VACANCY RATE DROPS FURTHER TO 5.4%
Overall vacancy in the Austin industrial market is at 5.4%, down 190 basis points from this time last year at 7.3%, while available sublease space also decreased 27% from roughly 2.5 million sq. ft. as of July 2020 to 1.8 million sq. ft. as of July 2021. Of the record-breaking 13.0 million sq. ft. under construction, 88% has been spoken for—which includes the 4.5 million-sq.-ft. Tesla Gigafactory, and the 3.8 million-sq.-ft. Amazon Distribution Center. Twenty-four properties have delivered so for in 2021 totaling 1.5 million sq. ft., with an occupancy rate of 45.1%. The vacancy rate for Class A properties has plunged to 11.9%, down from the prior period at 20.5%. The asking price for industrial properties is currently at an average monthly rate of $0.94 per sq. ft., up 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.
FLEX PROJECT COMING TO GEORGETOWN
Groundbreaking is scheduled for September 2021 on Woodgate Corporate Park. The 12-acre flex project will have two buildings totaling 116,624 sq. ft., located across from the Georgetown Municipal Airport at 4045 Airport Road. Completion is planned for Q1 2022. Georgetown is a midsized submarket containing around 5.6 million square feet of industrial/flex Austin industrial space.
TESLA GETTING CLOSER TO PRODUCTION
The electric car maker recently published photos of the massive Austin industrial automotive factory it’s building just east of Austin that show the interior and exterior of the so-called Gigafactory Texas. The photos included an aerial view of construction that began last July and now appears to be nearing completion. Production will start at the new $1.1 billion plant with the Model Y electric SUVs later this year, with future plans to launch the beta phase of manufacturing for Tesla’s Cybertruck.
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