MARKET TRENDS
- Vacancy increased by 70 basis points (bps) in the second quarter, which can be attributed to the 2.7 million square feet (msf) of new deliveries coming online. Supply has outpaced demand, which is expected to continue given the 16.0 msf currently in the construction pipeline.
- While vacancy increased, net absorption continues to remain positive, with the Austin market seeing 1.6 msf of net absorption for the quarter. Much of this positive movement stemmed from the Georgetown/Round Rock submarket.
- Asking rental rates for industrial space decreased recording $11.72 NNN in Q2, a 1.3% decrease from last year. If vacancy continues to climb, asking rents will likely decline as supply outpaces demand.