Austin industrial sector continues expansion with thriving construction pipeline - United States
Austin industrial sector continues expansion with thriving construction pipeline
Driven by the e-commerce boom, strong population growth and large occupiers entering the market, Austin’s industrial base inventory has expanded by 33.8% with 28.6 million square feet (msf) delivered over the past 3 years.
Construction pipelines remain robust with 6.2 msf of new product delivered year to date and under construction levels remain at near record highs with 19.9 msf slated to deliver through 2025.
Owner-user properties account for 6.4 msf of construction largely due to Samsung and Tesla’s manufacturing projects underway while 13.5 msf consists of spec and BTS leased product.
Areas of significant industrial development include the I-35 corridor in Hays County, southeast Austin and the Georgetown/Round Rock area. The appeal of these submarkets include the variety of employment opportunities, proximity to the major cities in the Austin metro, housing prices, vibrant community events, safe neighborhoods, outdoor amenities and a competitive cost of living index.