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Austin Industrial Hero

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Highest level of demand ever recorded in Austin Industrial Market.


AUSTIN COULD SEE ADDITIONAL DEMAND GROWTH
Demand for Austin industrial market space (9.4 million sq. ft. of net absorption) outpaced supply (6.8 million sq. ft. of deliveries) by 40% through November of 2021. This is by far the highest level of demand ever recorded in the Austin metro. With 6.8 million sq. ft. delivered since the beginning of the year, 11.7 million sq. ft. under construction, and another 6 million sq. ft. proposed through 2022, Austin’s industrial market has had one of its best statistical years ever.

DEVELOPERS ARE ENCOURAGED
With 55 properties comprising 11.7 million sq. ft. in the construction pipeline, developers are confident by the Samsung expansion, Tesla’s growth, and Amazon’s recent leasing spree. The Tesla Gigafactory project makes up 4.3 million sq. ft. of development, and of the remaining 7.2 million sq. ft. underway, about 36% of the space is available. Since 2017, developers responded to a tight industrial market by bringing 14 million sq. ft. to the market, a 16.4% increase of total inventory. Austin’s industrial leasing velocity has been robust through the pandemic, currently up 26% from this time last year.

SAMSUNG’S SELECTION – TAYLOR, TEXAS – FOR $17 BILLION CHIPMAKING FACTORY
After almost a year of speculation about where the South Korean multinational electronics corporation would build, Samsung puts the Texas semiconductor industry, and its property development plans, on a global platform. Local experts estimate the economic benefit from the construction project alone could total about $27.2 billion, when considering the cost of real estate, construction, engineering, and services. Depending on the timing of the phases of the plant’s production, the factory’s operations could support billions in economic activity over the next decade. The project is expected to create 6,500 construction jobs once work begins in early 2022, with the plant expected to start production in the second half of 2024.

 

Austin Industrial Graphs

 

Leta Wauson
Director of Research
[email protected]
tel 713 275 9618

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