Industrial Vacancies Dip to Near Zero in Some Areas

Getagadget has renewed its 30,600 square foot lease at Montopolis.

AUSTIN, TX—During the second quarter, citywide industrial vacancy hit 6.7%, the lowest in almost two decades, with a citywide warehouse vacancy of 5.1%. And, three submarkets have vacancy under 3%, says CBRE in its Austin industrial market report. Since the first quarter of 2014, warehouse NNN rates have increased by 24.5%, while flex rates have increased by 31.6%, says CBRE.

Four new industrial construction projects broke ground in the Southeast submarket, bringing the marketwide under construction total to 1.04 million square feet. Warehouse product led industrial absorption in the second quarter with 167,260 square feet. Among the newest lease activity to contribute to the industrial score card are two lease renewals and one new lease.