As e-commerce and manufacturing companies continue to thrive, we are seeing increased industrial activity across Central Texas, particularly in Austin. Here we explore some of the largest leases responsible for the strong absorption in 2021.
Read Next: Austin-Area Industrial Developments (Under Construction and Proposed)
In this article, we highlight the five largest industrial leases signed in the Austin area in 2021 organized from largest in size to smallest.
5 Largest Industrial Leases Signed in Austin in 2021
1. Simwon
Size: 491,651 SF
Buildings: Plum Creek Industrial Center
Submarket: Kyle, TX
Industry: Automotive Manufacturing
Lease Type: New
Simwon, a large automotive manufacturing company, recently signed a lease in 2Q 2021 for 491,651 square feet of newly-constructed industrial space in Kyle.
Tied to Tesla Inc.’s California operations, the company will be located 30 minutes from Tesla’s new factory. Being a tier-one supplier to Tesla’s plant in Fremont, California, it is no coincidence the company is expanding in Texas, though no confirmation has been reported of the two companies working together.
Plum Creek Industrial Center is 83% leased as of this publication. The industrial space made its debut in 4Q 2021 and plans to accommodate over 1,000 new jobs, opening doors of opportunity in Kyle, TX.
2. Amazon
Size: 319,540 SF
Buildings: Central Austin Business Park
Submarket: Northeast
Industry: E-commerce
Lease Type: New
Amazon was a large player in Austin’s industrial leasing market for the second year in a row.
In 3Q 2021, Amazon signed a lease for 319,540 square feet at Central Austin Business Park in the Northeast submarket. Amazon also opened its 3.8 million-square-foot distribution center in Pflugerville this year.
3. Target
Size: 202,165 SF
Buildings: Tuscany Logistics Center Bldg 2
Submarket: Northeast
Industry: Retail
Lease Type: New
Target, America’s eighth-largest retailer, leased 202,165 square feet at Tuscany Logistics Center Building 2 in Hays County. Primed for colossal e-commerce distributors, the building is expected to deliver in 4Q 2022.
This industrial space is in a prime location with nearby proximity to Austin-Bergstrom International Airport. With easy access to the metro’s largest highways such as US-183, US-130, I-35, and US-290, Tuscany Logistics center is ideal for the large retailer.
4. American Canning
Size: 162,786 SF
Buildings: Park 183
Submarket: Northeast
Industry: Canning
Lease Type: New
American Canning, which specializes in the manufacturing of tin cans, signed a lease for 162,786 square feet of industrial space. The company occupies 100% of Park 183 Bldg 4 as of 4Q 2021.
Park 183 is an industrial park consisting of seven buildings located in the Northeast submarket. Buildings 6 and 7 are expected to deliver in 3Q 2022.
Located near the pinnacle of Austin infrastructure, the space can service both Austin and San Antonio. This industrial space is within a newly established Triple Freeport Zone, and equipped with sizable column spacing and large truck courts.
5. Amazon
Size: 160,000 SF
Buildings: MetCenter II Building 3
Submarket: Southeast
Industry: E-commerce
Lease Type: Renewal
Amazon’s lease at Central Austin Business Park was the company’s largest lease in 2021 but it was not their only lease.
The company also renewed 160,000 square feet at MetCenter II Bldg.3 in the Southeast submarket in 2Q 2021. Amazon also signed a handful of other leases in the Austin area that did not make our list.
Conclusion
Overall, Austin’s Industrial market experienced significant absorption and a drop in vacancy levels. Demand drivers, such as major company relocations and increased employment opportunities have contributed to immense industrial growth in Austin.
