Download the PDF
Midway through the second quarter, overall vacancy is at 7.7%, up 70 basis points from this time last year at 7.0%. Year-to-date, almost 1 million sq. ft. of industrial product has been delivered to the Austin metro, with 80% of that space available for occupancy.
Industrial vacancy increases. Midway through the second quarter, overall vacancy is at 7.7%, up 70 basis points from this time last year at 7.0%. Year-to-date, almost 1 million sq. ft. of industrial product has been delivered to the Austin metro, with 80% of that space available for occupancy. The Austin industrial market has recorded 1.6 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—while net absorption (move-ins minus move-outs) totaled 79,000 sq. ft. as of May 2019. The asking price for industrial properties has steadily grown over the past ten years, and registered at $0.87 per sq. ft. in May 2019.
Park 183 prepares for phase two with FedEx. The industrial development at 8219 Burleson Road has broken ground on the next phase of Park 183 that includes the entire 85,000-sq.-ft. Building 4 prelease to FedEx Corp. Phase two is scheduled for completion in the fourth quarter of 2019, while permits for Phase three have been submitted. The third phase will comprise two Class A industrial buildings totaling 300,000 sq. ft. with construction beginning in the second quarter of 2019, and delivery slated for 2020. In the end, Park 183 will include over 900,000 sq. ft. of Class A space throughout seven buildings.
Lowest unemployment since December 2000. Austin’s March unemployment rate dropped to 2.9%—below the Texas and U.S. rates of 3.8%—marking the lowest rate since December 2000. After expanding 2.4% in 2018, Austin job growth slowed to an annualized rate of 1.5% for the first quarter of 2019. Growth in the financial activities sector saw strong growth at an annualized rate of 11% or a net 1,700 jobs. The manufacturing sector decreased in size at an annualized rate of 6.2%, mostly due to a decline in jobs related to computer and electronic products manufacturing.
Director of Research
tel 713 275 9618