Austin Industrial/Warehouse Space - Lease Market Report

The Austin Industrial/Warehouse Space Market ended the fourth quarter of 2009 with positive absorption. Considering the first few quarters of 2009 were negative it looks like we are heading the right direction. While some companies are still waiting to see how the Austin economy plays out others who are in the position to lock in longer lease terms are taking advantage of the tenant market and upgrading their space while shedding Industrial/Warehouse leasing costs.

Vacancy - The total Austin Industrial vacancy is 13.9%. Other vacancy rates: Flex properties - 19.1%, Warehouse - 12.2%

Rental Rates - The average quoted rental rate for Austin Industrial space is $6.81 sf. Average quotes rates for Flex properties are $9.57 sf and quoted Warehouse rates are $5.78 sf.

Subleases - The number of Industrial subleases has slightly increased however most of the smaller subleases are starting to move. There is currently 169,435 Sf of Industrial/Warehouse sublease space available in the Austin market. Of that number 34,312 sf is Flex space and 135,123 sf is Warehouse.