Industrial: Supply Outpacing Demand

Industrial supply in the Austin metro continues outpacing demand. According to data from NAI Partners, new supply delivered as of September 2017 totals 2.5 million square feet, Meanwhile, net absorption was at -155,162 square feet. The year-to-date vacancy is 7.6%, a 40-basis-point increase from the 7.1% reported in September 2016.

NAI Partners points out that, on a quarterly basis, supply has outpaced demand for six out of the past seven quarters, in direct contrast to 2014 and 2015, when net absorption outpaced deliveries. Even more space is anticipated for delivery; 981,426 square feet is under construction, and 80% of that space is available for lease.

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