AUSTIN--Austin's industrial market continues to progress with rental rates rising yet again in the second quarter, according to a new report from Colliers International.

The citywide average quoted rental rate increased by 1.6 percent between quarters from $8.21 to $8.34 per square foot, and increased 18.5 percent on a year-to-year basis from $7.04 per square foot.

"It's been great to see all of the recent leasing at Expo Center in the southeast submarket,” Travis Hicks, vice president/industrial in Colliers' Austin office, told GlobeSt.com, referring to Kendra Scott taking 64,800 square feet at the new Expo 11, and Novitex taking 122,400 square feet at Expo 8. “With all of the activity and pending deals we see in the market right now, I think we'll see the other big blocks of space lease up very soon as well, leaving little to zero 60,000 square feet to 120,000 square feet spaces remaining in the southeast submarket."

In addition, vacancy dropped 140 basis points over the quarter from 10.2 percent to 8.8 percent, continuing to gradually decrease after a small increase last quarter.

Three buildings totaling 207,008 square feet delivered in the second quarter, two of which are in Hays County, south of Austin. According to the Texas Workforce Commission, the Texas economy and employment across all major industry sectors continue to grow. Austin's unemployment rate fell to 3.4 percent from 4.6 percent over the year, lower than both the state and national average.

Austin was the third-fastest growing metro area in the nation during the past year with the population expanding by 3 percent between July 2013 and July 2014, according to the U.S. Census Bureau's recent data. Hays County alone was the fifth-fastest growing county in the nation over the past year.