MARKET TRENDS
- Vacancy increased by 40 basis points (bps) in the third quarter, which can be attributed to the 2.1 million square feet (msf) of new deliveries coming online. Supply has outpaced demand, which is expected to continue given the 15.6 msf currently in the construction pipeline.
- Asking rental rates for industrial space decreased by 5.0% over the past year and average $11.37 per square foot (psf) as of Q3 2024. If vacancy continues to climb, asking rents will likely decline as supply outpaces demand.
- Net absorption has remained positive, with the Austin market seeing 1.1 msf of net absorption for the quarter. Going forward, net absorption will likely remain positive given the amount of leasing observed throughout the year.