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Austin Industrial/Warehouse Space In-depth
With approximately 800,000 square feet of new Austin industrial space available, the development cycle in Austin’s industrial space market is in low gear after many years of rapid development. Several large industrial space developments are now finished in Austin, creating an impact on the market. Many developers have halted development even... Read More
Austin Industrial/Warehouse Space In-depth
With approximately 800,000 square feet of new Austin industrial space available, the development cycle in Austin’s industrial space market is in low gear after many years of rapid development. Several large industrial space developments are now finished in Austin, creating an impact on the market. Many developers have halted development even after breaking ground to wait out the economic downturn that the national and local economies are experiencing.
Austin has established itself as a technology-driven economy, considered only second to San Jose’s Silicon Valley. Rightly nicknamed Silicon Hills, Austin industrial space has attracted and nurtured the expansion of such companies as Dell and AMD. In one of Austin’s most notable projects, Samsung Electronics is moving full-speed ahead on the construction of its second local semiconductor factory, which will be known as Austin Fab 2.
Although Austin continues to primarily be considered a high-tech market, most of the new Austin industrial space developments have the bulk-warehouse tenant in mind since there currently isn’t much bulk warehouse/distribution space available in the market.
Before the national economic downturn, Austin’s industrial space market was seeing expansions of existing companies, new firms were entering the market, and start-ups were looking to get in early on the market’s momentum with industrial space in Austin. Specifically, there were more traditional office space users that were looking at industrial flex space as a cheaper alternative since office rents had dramatically increased during the economic boom cycle. Now that the economic boom cycle is over, an abundance of Austin industrial space for lease and Austin industrial space for sale are readily available.
For companies that have flexibility with their space options, new Austin industrial space may serve as a better alternative to the higher priced office space market. While this option may not be suitable for all companies, the opportunity is there for some to take advantage of the increased supply and lower rents in the Austin industrial space market.
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