Continued strong tenant demand for distribution space drove the Austin industrial market to its 26th consecutive quarter of positive net demand.
The development pipeline remained robust in Q4 2020 with 15 projects totaling approximately 1.56 million sq. ft. under active construction. There were three deliveries during the quarter.
Quarter-over-quarter, average asking rates rose $0.29 per sq. ft. to $10.17 per sq. ft. in Q4 2020.
Vacancy decreased 150 basis points to 8.2% in Q4 2020. Large block distribution space continues to attract the most attention from users throughout the metro, and as available space continues to decrease, users will potentially need to adjust their space requirements to fit their needs.