• Strong tenant demand for distribution space drove the Austin industrial market to its 25th consecutive quarter of positive net demand.

  • The development pipeline remained robust in Q3 2020 with 15 projects totaling approximately 1.34 million sq. ft. under active construction.  There were no deliveries during the quarter.

  • Quarter-over-quarter, average asking rates rose $0.24 from Q2 2020 per sq. ft. to $9.88 per sq. ft. in Q3 2020. Flex/R&D rates decreased $0.14 quarter-over-quarter to $11.81 per sq. ft., while warehouse rates climbed from $7.66 last quarter to $8.38 per sq. ft. in Q3 2020.

  • Vacancy decreased 40 basis points to 9.7% in Q3 2020.  As demand remains robust for distribution space, particularly for last-mile operations, Austin's industrial market will continue to see increased interest from investors who have not previously looked at the Central Texas region.