For the first time since 2014, annual net absorption in the Austin industrial market did not crest 1 million sq. ft.
With the delivery of approximately 1.8 million sq. ft. of new construction this year, the market struggled to absorb the new space.
Vacancy increased once again this quarter, rising from 9.3% to 9.9%, while the average annuals asking rent declined $0.24 to $10.15 per sq. ft.
This quarter was the most significant for 2017 demand, registering close to 360,000 sq. ft. of new growth, bringing the year to 698,000 sq. ft.
The Southeast submarket saw the first two buildings of Trammell Crow Co.'s new development Park 183 deliver, adding an additional 246,000 sq. ft. to the desired submarket. A 58,500 sq. ft. warehouse/distribution building delivered in the Round Rock submarket as well this quarter.