Round Rock emerges as strong industrial market, CBRE report says

Mar 26, 2014
Austin Business Journal

Market demand for industrial properties is strong in the Austin area with the Round Rock submarket catching on fire in the fourth quarter of 2013, according to CBRE Group Inc.’s most recent report

During the last three months of 2013, nearly 183,000 square feet of positive absorption was recorded in Round Rock, far outpacing other areas

One of the biggest leases signed in that submarket was at the former Intercraft manufacturing facility in Taylor just east of Round Rock. The 330,000-square-foot property is owned by Big Industrial LLC of Prairie Village, Kan., which signed a lease for 150,000 square feet with the Travis Association for the Blind

Other big leases in the fourth quarter included Genesis Today, a nutritional products company that took 108,327 square feet at Bergstrom Tech Center, 6800 Burleson Road; Flextronics, which expanded into an additional 25,000 square feet at McNeil I in North Austin at 12317 Technology Blvd.; Opal Stones, which expanded into 20,475 square feet at 2200 Denton Drive; and HostGator, which leased almost 47,000 square feet at Promontory Point C, 2500 Ridgepoint Drive

In addition, J.B. Hunt Transport Services Inc. vacated 32,594 square feet at 8701 Wall St., and relocated to 32,000 square feet at 2251 Picadilly Drive in Pflugerville

Other highlights of the fourth quarter industrial report:

• Vacancy fell to 9.8 percent, the lowest level since 2001;

• Nearly 461,000 square feet of industrial space was absorbed by new leases or expansion;

• The average asking rate for industrial space was 63 cents per square foot, up from 61 cdents the previous quarter and 57 cents a year earlier;

• No new construction was delivered;

• About 623,000 square feet is under construction

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