Austin Industrial Investment Forecast
Nation-Leading Growth Driving Demand Surge;
Wider Array of Investors Look to Grow Austin Footprints
Record-breaking fundamentals highlight newfound industrial prominence. Austin reports the fastest level of population growth of major American metros and it is also home to the highest household incomes in the state. The economic expansion has led to a rapid need for additional industrial space as the metro has just a tenth of the inventory of Dallas-Fort Worth. Both large-scale distribution and smaller last-mile facilities are readily leased. Austin enters this year following a staggering 350-basis-point drop in vacancy in 2021 to the lowest rate since at least 2000. Tight market conditions throughout Austin warrant the record supply wave that will occur this year. However demand will keep pace with development promoting further vacancy compression and the 10th consecutive year of annual rent growth in 2022. The majority of new space entering the market this year are 700000-plus-square-foot built-to-suit properties headlined by upcoming projects from Amazon Tesla and Applied Logistics.