Austin Emerges as a Key Texas Industrial Market
Although Austin’s industrial market has historically been regarded as a secondary market compared to the likes of Dallas and Houston, it is quickly beginning to emerge as one of the key industrial markets in Texas. More developers are acquiring large land tracts, larger buildings are being planned and the size of tenant requirements has increased drastically, according to Aquila Commercial research.
While the effects of the pandemic continue to be felt on a macro basis, Austin’s economic resilience and strong dynamics will continue to benefit its industrial market into 2021.
In fourth quarter 2020, approximately 638,339 square feet of positive net absorption was tallied region-wide for industrial space. This is lower than the impressive 1.4 million square feet of positive absorption in third quarter 2020. But, it is still a strong indication of the market’s health and is far above what the Austin office market has posted in recent quarters. Flex absorption, which had been negative for most of 2020, has now started to rebound, says the research.