Austin industrial market report
Q3 2024
The Austin industrial market continues its positive trajectory with strong leasing activity and absorption quarter-over-quarter, signaling sustained demand as the market recovers. Development is thriving, particularly in submarkets like Hays and East Austin, where construction projects continue to advance. Austin’s strategic location, coupled with its solid economic fundamentals, positions it as a key regional hub, maintaining resilience despite shifting market conditions.
1.7 msf
Leasing activity remains active
Strong demand is evident in the third quarter, with a total of 1.7 million square feet (msf) leased. Major tenants like FMT and Cangshan secured leases for 218,400 sf and 158,351 sf, respectively. High-profile companies such as Tesla Delivery also locked in pre-lease agreements for upcoming development projects.
4.1 msf
Absorption continues its positive trajectory
Net absorption remains strong, with 511,367 sf of space occupied in the third quarter, pushing the year-to-date total to 4.1 msf. This steady growth underscores the ongoing demand for industrial space, reinforcing the market's positive momentum throughout the year.
3.5 msf
Distribution sector leads in demand
The distribution sector leads year-to-date absorption with 3.5 msf, followed by 725,000 sf of warehouse space. Notable third quarter deals include Texas Plumbing Supply and Tokyo Electron, further fueling this growth.
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