Market Beat: Austin Industrial Q2 2019

Economy: As the first half of 2019 came to a close, the Austin economy continued to perform as one of the strongest in the country. At 3.0%, the local unemployment rate remains near record lows as compared to the United States’ rate of 3.6%. Additionally, the U.S. Bureau of Labor Statistics reports the city added approximately 19,000 jobs over the last 12 months. While the high-tech industry continues to be the significant driver of this explosive growth, a diversified and well-educated employment base has sustained the city’s economic stability.
Market Overview: The Austin industrial market remained healthy to close out the first quarter of 2019. Leasing activity kept up a strong pace throughout the city while vacancy rates remained relatively steady at 8.0% for all product types. Approximately 850,000 square feet (sf) of new industrial product was delivered during the quarter, including Heatherwilde45, which saw more 250,000 sf delivered in that project alone in the Northeast submarket. Absorption levels were tempered as some large move-outs contributed to the overall negative absorption figures. Click to read more at