AUSTIN—Industrial activity in Austin is said to be “brisk” and in “better shape than it was five years ago,” concludes a recent report from REOC Austin.

“Following the solid performance in the final quarter of 2014, Austin-area industrial lease properties recorded another positive quarter to start the year,” says Kim Gatley, senior vice president and director of research at REOC Austin.

According to the survey of more than 38 million square feet of industrial lease space conducted by the research department of REOC Austin and confirmed by the Xceligent Industrial Advisory Board, investment activity was moving at a steady clip.

Topping market news in the first quarter, Global Logistic Properties purchased the IndCor Properties' portfolio totaling 117 million square feet across the United States. The Austin portion of the portfolio featured 28 properties spanning approximately 2.4 million square feet. Other sales included Schurr Investment's purchase of Davis Springs Bldgs 1-4 at 9825 Spectrum Drive and the sale of 9460 Cameron Road to an unnamed investor. In addition, CyrusOne acquired Met Center Building 4 and Epic Piping bought the Butler Manufacturing Building in San Marcos.

“Strong investment activity speaks to investor confidence in Austin's economic strength and long-term positive outlook,” says Mark Milstead, vice president, industrial services, REOC Austin, as well as a member of the Xceligent board.

New leases and expansions inked in the first three months of the year translated into 270,783 square feet of positive net absorption. Topping the list of new leases that contributed to the healthy first quarter gain was Mattress Firm, which took occupancy of 99,200 square feet at Corridor Park 9 in the Round Rock sector. The Round Rock sector also recorded a lease by Global Environmental Services (GES) for 28,219 square feet at 224 Investment Loop.

The North sector experienced several sizable warehouse leases including Packsys International (48,757 square feet) at Northpointe Trade Center B, Computer Recycling (27,000-square-foot expansion) at McKalla 1, Amazon's Prime Now (27,000 square feet) at Metric 2 and Goodwill (23,132 square feet) Waterford I. The North and Round Rock sectors garnered most of the absorption this quarter with 167,767 square feet and 136,029 square feet, respectively.

The Austin industrial market closed the first quarter with a citywide vacancy rate of 9.8 percent, which is down compared to 10.9 percent last quarter and 10.6 percent recorded in the same quarter a year ago.

“The market is in much better shape than it was just five years ago. Citywide vacancy in 2010 stood at a very soft 23.6 percent,” says Jerry Heare, senior vice president, REOC Austin.