Q1 2017 Austin Industrial Research & Forecast Report
Austin’s industrial market starts 2017 with a hit to absorption
Austin’s industrial market took a big hit during Q1 2017, posting
622,956 SF of negative net absorption. This is the largest loss
since Q1 of 2014, when the negative net absorption hit 771,075 SF.
The rapid increase in rental rates seen in the past three years has
slowed and vacancy rates are rising.
Most of this negative absorption, reported by CoStar (our data
provider), can be attributed to two large tenants being reported as
moving out of their spaces, but it is rumored that they may renew
their leases in the coming months.
Austin’s citywide average rental rates decreased over the quarter
from $10.57 per SF NNN to $10.37 per SF NNN. Warehouse/
Distribution rental rates increased to $7.66 per SF NNN from $7.55
per SF, and citywide Flex/R&D rental rates increased to…click here to visit our website and view the complete report.
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