Austin Industrial A slip in industrial leasing with more than 1 million square feet of construction suggests a vacancy uptick.

AUSTIN, TX—At the beginning of the year, the Austin industrial market continue to slip as new development activity pressed on market-wide asking rates and vacancy, according to a recent CBRE report. Quarter-over-quarter, average asking rates fell $0.24 from fourth quarter 2019 per square foot to $9.56 per square foot in first quarter 2020. Vacancy increased 30 basis points to 10.8% in first quarter 2020, driven largely by the delivery of three southern metro projects totaling 432,919 square feet that were collectively only 20% pre-leased.

Despite slackening fundamentals, developers have remained bullish on the Austin market as five more projects kicked off during the quarter, bringing total active construction to approximately 1.2 million square feet. And, there was zero pre-leasing activity registered as of quarter’s end.

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Lisa Brown

Lisa Brown is an editor for the south and west regions of She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

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