Annual market absorption crested 1.7 million sq. ft. of positive demand, while market vacancy fell to 9.4%, despite the delivery of more than 1.7 million sq. ft. of new product to the market throughout 2018.
Development activity in Q4 2018 was rather muted compared to past quarters, with only one building delivering in the market: a 222,800 sq. ft. warehouse center in Hays County.
However, total development activity in 2018 proved to be enormous, with more than 1.75 million sq. ft. of new product coming online throughout the year.
2018 proved to be a burly year for the Austin market. In addition to high absorption levels, vacancy remained below the 10.0% “sweet spot” developers prefer and average annual asking rates hit $10.53 per sq. ft.