California firm adds another large industrial park in Northwest Austin

Nov 5, 2014
Austin Business Journal

PS Business Parks Inc., which already owns or operates more than a dozen industrial and business properties in Austin, has acquired another — this time McNeil 1, a 246,390-square-foot industrial complex at 12317 Technology Blvd. in northwest Austin


The seller was Investors Warranty of America, a Cedar Rapids, Iowa-based company that has owned the property since 2010, according to records at the Williamson Central Appraisal District


The purchase price was not disclosed but the Williamson Central Appraisal District values the property currently at $9,039,778


PS Business Parks is a publicly traded company based in Glendale, California, which owns and operates nearly 29 million square feet of commercial space in eight states


About 140,000 square feet at McNeil 1 is available for lease


Vacancy rates continue to drop in the industrial sector to 11.3 percent, according to CBRE's third quarter report. The northwest submarket is close to that average with 11.2 percent vacancy


The tightest submarkets for industrial properties are in Central Austin, South Austin, far northwest Austin and Georgetown where vacancy rates range from 0 percent to 7.4 percent. Industrial space is most prevalent in Hays County where the vacancy rate approaches 33 percent


Net absorption was positive for the third quarter at 234,182 square feet despite the fact that several companies vacated large spaces, including Cevo Freight (195,200 square feet), Tiger Turf (111,300 square feet) and Hamilton Scientific (56,721)


About 469,000 square feet of industrial space is under construction after several quarters of almost nothing being delivered



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