Industrial leasing in Austin continued its upward trend with another massive year in 2022. In this article, we will take a look at the five largest industrial leases of the year.
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1. GAF Energy
GAF Energy, a solar roofing company based out of San Jose, California, signed a lease for 449,527 square feet at Longhorn Junction in 3Q 2022. GAF will produce nailable solar shingles aimed at challenging Tesla’s Solar Roof. With this move, GAF would join CelLink as one of the largest employers in Georgetown.
This lease will be GAF Energy’s first in Austin as they stake their claim in the 400,000-square-foot facility in Georgetown. GAF will move in after the facility is expected to deliver in June 2023.
2. Four Hands
Four Hands, a global furniture designer and wholesaler, signed a lease for 244,285 square feet in Buda Midway Phase 1 Building 3 in 2Q 2022. This lease was for the entire building and is the larger of a pair of leases (totaling 359,640 square feet) signed by the Austin-based company in the Buda Midway complex in 2022.
The company estimates that the new space will create approximately 50 jobs for employees looking to come aboard. Four Hands’ move into Buda Midway will be an addition to their existing 530,000 square feet of warehouse space in the area.
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3. RK Logistics Group
RK Logistics Group, a third-party supply chain support services provider, signed a lease for 208,010 square feet at Hays Logistics Center 2 in 4Q 2022. This distribution center delivered in June 2022 and sat vacant until securing the RK Logistics lease.
RK Logistics Group joins Favorite Brands, FedEx, and Redbud Flight Simulators in the new development.
4. Ferguson Enterprises
Ferguson Enterprises, a North American plumbing and appliances distributor, preleased 207,180 square feet in ATX 130 Building 3 in 4Q 2022. ATX 130 is set to deliver in January 2024.
In order to secure Ferguson as their first tenant, the developer shrank the building to accommodate the outdoor storage needs of the Virginia-based company.
5. Onx Homes
Onx Homes, an integrated DesignTech company centered around building homes and neighborhoods, leased 200,000 square feet at Cross Point Business District in 1Q 2022. Looking to reshape the home building industry, the company has over 10 communities and 3,000 homes under advanced development.
Onx is the first tenant secured in Phase 1 of the development. The 488,000-square-foot development is expected to deliver in 2Q 2023. The announcement of Cross Point Business District, a 224-acre development in Georgetown, added to a substantial year for the Georgetown region in the industrial sector. Phase 2 will include industrial, commercial, and multifamily development and can be expected to bring many new jobs to the market.
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As you can see, the Austin industrial market had a fantastic year due in large to the movement to new developments North and South of the CBD. We cannot say for sure what 2023 will bring to the industrial market but we are hopeful that the trend of substantial growth in recent years will continue.