With Space Scarce, Land Purchases Are Plan B

A partnership has acquired a 95-acre land parcel with plans to develop Park 183.

AUSTIN, TX—The booming local economy continues to fuel demand for industrial space. According to the Texas Workforce Commission, the Austin-Round Rock metro area added 38,400 new jobs during the 12 months ending in June, equating to an annual growth rate of 4%, GlobeSt.com learns.  Essentially, Austin is operating at full employment with a reported unemployment rate of 3.3% which compares favorably to the Texas rate of 4.8% and the US rate of 5.1%.

This full employment translates to space needs, and for all practical purposes, the Austin industrial market is full. In fact, the market is the tightest it has been in the 30-year history of tracking local industrial lease space, according to REOC Austin’s second quarter report. According to the survey of more than 38.1 million square feet of industrial properties, less than 1.83 million square feet was vacant at mid-year, which translates into an incredibly tight citywide vacancy rate of 4.8%, GlobeSt.com learns.  The second quarter vacancy rate was down from 6.4% first quarter and 9.1% recorded in the same quarter a year ago.