Industrial CRE experts in Texas have seen just about everything over the course of their careers. Even so, where the market stands today is a first for many.
“With some of our older vintage/infill product, we are seeing rental rate increases of 40 to 60 percent on average,” shares Canon Shoults, managing principal at Holt Lunsford Commercial. “Whether renewals or new deals, lease rates have been on the move every 30 to 60 days.”
That’s just one example of the red-hot industrial sector, what JLL-Austin executive vice president Ace Schlameus describes as “tight, dynamic and evolving.”
“Like every market, the e-commerce explosion is driving demand, but in Austin we have the added increase with the population growth due to the masses of people moving to Central Texas,” Schlameus adds.
Davis Bass, industrial project partner at HPI in Austin, sees the same driver: “With more rooftops in Austin, the city needs more places to store toothbrushes, restaurant supplies, building materials, and other goods.”
Zane Cole, who is also an EVP with JLL-Austin, attributes some of the demand to a spike in automobile manufacturing and vendors looking to be a part of production that is starting as soon as the end of the year. Click to read more at www.rednews.com.