While sublease space is skewing year-end tallies across the board, the bottom line is absorption has come in at a record-breaking 2,486,932 sf, according to NAI/CIP's Austin office. Of that total, 59% had been inked for warehouse space and the balance for flex-research and development spots. The year 2000 tally is 17% higher than 1999 absorption figures. The biggest drive had come in the last half of the year, with demand double that recorded in the first six months.
Warehouse space is boasting a 4% vacancy while flex-R&D is riding at 8%, says the team's year-end report. Rent in the flex-R&D categories range from 65 cents per sf to $1.25 per sf per month while warehouse is fetching 37 cents per sf to 75 cents per sf.
Of the city's six submarkets, the northeast has the most bulk warehouse space under construction, 489,424 sf, and boasts a 1% vacancy. North Austin is second in construction, 434,220 sf, and carries a 2% vacancy rate while Round Rock, which also has a 1% vacancy, has 336,880 sf coming out of the ground.
The east Austin and southeast submarkets are faring the worst in the region, with no bulk warehouse projects under construction and high vacancies at existing product. East Austin has a 6% vacancy rate and the southeast, a whopping 13%. The southeast market is carrying an 8% vacancy and has 371,000 sf under construction.
But there's a no vacancy sign hanging on the east and south submarkets for flex-R&D space. Adding to the problem is that the east is without any new product pushing up dirt. The south, at least, will see 140,000 sf come on line to bring some relief. Over in the southeast, there is 467,200 sf under construction despite a 13% vacancy.
Austin's flex-R&D leader is the northeast submarket, where there is 594,556 sf under construction. With a 2% vacancy rate, the extra room will definitely be welcomed with open arms even though it currently bears 48% of the city's industrial space. In Round Rock, there is an 8% vacancy and 140,986 sf being built. And in north Austin, vacancy is riding at 7% vacancy while crews work on bringing another 202,488 sf to the market.
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