Overall vacancy is at 6.8%, down 110 basis points from this time last year at 7.9%, while available sublease space increased 40% from roughly 780,000 sq. ft. in November 2019 to 1.1 million sq. ft. in November 2020.
Vacancy rate drops to 6.8%. Overall vacancy is at 6.8%, down 110 basis points from this time last year at 7.9%, while available sublease space increased 40% from roughly 780,000 sq. ft. in November 2019 to 1.1 million sq. ft. in November 2020. However, current sublease space is still only 10% of total available space. Of the 12.4 million sq. ft. under construction, 84.4% has been spoken for—which includes the 4.5 million-sq.-ft. Tesla Gigafactory, and the 3.8 million-sq.-ft. Amazon Distribution Center. In addition, of the 2.4 million sq. ft. completed in 2020, 59% of that space is occupied. The vacancy rate for Class A properties is at 17.3%, down from the prior period at 23.0%. The asking price for industrial properties is currently at an average monthly rate of $0.92 per sq. ft., up from this time last year at $0.86 per sq. ft. due primarily to the new product added to the market.
Japanese company CKD acquires industrial space in Southeast Austin. CKD USA Corp., purchased a 50,000-sq.-ft. industrial building in Q3 2020 at 4401 Supply Court, just west of the Austin-Bergstrom International Airport. Gov. Greg Abbott had recently announced CKD had picked Central Texas for its first U.S. production site. Industrial space is in high demand right now, especially as ecommerce grows amid the COVID-19 pandemic. CKD plant operations are expected to begin in fall 2021 in the Burleson Industrial Park. Troy Martin of NAI Partners represented CKD USA in the deal, and CBRE represented the seller, Eagle Burleson Park LLC.
Austin economy continued to recover in October. The Federal Reserve Bank of Dallas reported that recent job growth in Austin was positive in most industries, and the unemployment rate declined to a stillelevated 5.3% in October. The jobless rate ticked down to 6.9% in the state and nation.
Director of Research
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