As more and more companies move into the Austin metro area finding available Austin warehouse space for rent has gotten a lot harder. Over the last year 39,800 new jobs have been created in the Austin-Round Rock metro area and the unemployment rate dropped to 3.1% as of February 2016. Austin has a smaller industrial market than other cities such as Houston or Dallas however because it's at the center of Texas it's ideal for a lot of companies who want to easily distribute products and services to Houston, Dallas, and San Antonio.
Most of Austin's warehouse space is located in South, Southeast, Northeast, and North Central Austin. There are few other industrial buildings in other areas however the majority will be clustered in those areas. As you consider renting warehouse & industrial space in Austin, Tx below are a few key points to consider:
- Citywide average asking Austin warehouse & Industrial space lease rates range from $0.75 to $1.00 per sf per month gross (include base rate and operating expenses).
- Smaller warehouse space (1,000 to 10,000 sf) have average gross lease rates of $1.00 to $1.30 sf per month.
- Larger warehouse space (10,000 and bigger) have average gross lease rates of $0.75 to $1.00 sf per month.
- There are only a handful of industrial spaces in the 20,000 to 40,000 sf range so make sure you start the search process at least 6 months before your desired move in date or before your existing lease expiration date.
- Smaller warehouse spaces are in limited supply also however which means you have to start your search early
Bottom line is that inventory is at its lowest level in 10 years so make sure you start your search early. Do not wait until the last minute!