The spike in demand for logistical and distribution space throughout Central Texas during the pandemic months has spurred a run-on industrial space in Austin. For the 28th consecutive quarter, absorption in Austin remained positive, surpassing 830,000 sq. ft. of positive net demand.
Development activity remained robust during Q2 2021, with the total number of active projects under construction increasing to 22, totaling 2.5 million sq. ft.
Vacancy continued to tighten throughout the market, decreasing 80 basis points quarter-over-quarter to 6.3%. Similarly, availability decreased 50 basis points to 8.8%.
Asking rates throughout the market hit $10.63 per sq. ft. this quarter, a high that has not been seen since Q1 2019.