Austin industrial real estate market reports
Occupier demand remains strong but declines from record pace in 2022
Austin’s industrial market fundamentals remain strong with 736k square feet (sf) of net absorption in Q1 2023, but occupier demand is beginning to show signs of moderating to pre-pandemic levels after achieving a record high of 10.8 million sf absorbed in 2022.
Construction activity underway at all-time high
Development activity has reached an all-time high of 16.4 msf under construction as owners and developers have kept up with the robust demand experienced since the pandemic emerged in 2020.
Solid rent growth has pushed lease rates to a record high
Strong demand from e-commerce and tech manufacturing, along with new supply additions, have continued to place upward pressure on rental rates.
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