Eighth Largest Industrial Sale Corresponds with Hot Market
Private capital has been the most active buyer type for 2018, comprising 74% of Austin’s total sales volume, followed by cross-border buyers at 14% and institutional investors of the remaining 12%.
AUSTIN, TX—Job growth remains healthy as Austin payrolls grew at a 2.5% annualized rate for the three months through June. Most industries have recorded growth, with year-to-date construction and mining employment surging at 8.3%, and only the health and education services sector reporting a decline. Austin’s seasonally adjusted unemployment rate ticked up to 3% in June, though well below the 4% rate for both Texas and the country, according to NAI Partners research.
As for industrial, investment sales are up year-to-date through July. According to Real Capital Analytics, investment sales of industrial properties in the Austin area totaled $447 million, a 103% increase from one year ago. Private capital has been the most active buyer type for 2018, comprising 74% of Austin’s total sales volume, followed by cross-border buyers at 14% and institutional investors of the remaining 12%.
In the private buyer category, the eighth-largest industrial sale in Austin for this year just hit the record books. The 57,500-square-foot industrial property is located at 10611 N. I35.
The buyer is an owner of multiple luxury sports car dealerships that will likely use the property as an off-site auto repair location, GlobeSt.com learns. The price was undisclosed.
NAI Partners’ David Stojanik represented the seller, Apollo Paint and Body Shop Inc., in the transaction. Apollo Paint and Body Shop primarily operates in the body shop/automotive business industry within the automotive repair services and parking sector.
“Overall, the Austin industrial market has continued its strong 2018. Midway through the third quarter, the vacancy rate dropped 30 basis points to 6.5%, compared to 6.8% the month prior. Occupancy of the almost 1.1 million square feet delivered to the market year-to-date stands at 60.9%, and of the 38 properties with 2.5 million square feet currently under construction, 86.4% of that space is available for lease,” Leta Wauson, NAI Partners’ director of research, tells GlobeSt.com.
Year-to-date net absorption totals about 1.3 million square feet, while there have been 292 deals accounting for 2.4 million square feet of leasing activity. The average asking rate of renting industrial space is $10.26 per square feet on a triple net basis, Wauson says.