Absorption activity was strong this past quarter with positive net absorption of exceeding 82,000 sq. ft. mainly in warehouse/distribution, registering past 107,000 sq. ft.
At the close of the quarter, industrial developers continued their expansion of the industrial market in Austin by delivering an additional 124,476 sq. ft. of new product.
Market fundamentals improved during Q2 2018 as vacancy again dipped below 10%, the "sweet spot" for Austin developers. The citywide average annual asking rent increased over Q1 2018 to $9.89 per sq. ft., an increase of $0.02 per sq. ft., largely driven by flex/R&D product.
CBRE Research is currently tracking more than 1.8 million sq. ft. of user demand in the Austin market for both Flex/R&D and Warehouse/Distribution product