The industrial real estate market in Austin is experiencing a surge in demand, with Samsung and Tesla playing a significant role in the area’s development. JLL’s recent market report reveals that local industrial space demand remains high.
Samsung has started construction on phase one of its semiconductor facility in Taylor’s north submarket. Upon completion, the facility will span 3.2 million square feet and cost an estimated $17 billion, making it Samsung’s largest investment in the U.S. Both Samsung and Tesla together account for over one-third of the region’s total industrial development.
The growing need for industrial space has driven up the cost of square footage, with direct average asking rates reaching a record high of $13.77 per square foot – a 75.4 percent increase from 2020. Vacancy rates have also risen from 4.7 percent to 5.3 percent quarter over quarter.
While this booming industry is beneficial for the region, JLL’s report mentions that it creates challenges for small business owners, who must now compete with larger companies for space. For more insights on Austin and its industrial market, visit the original article here [insert link to original article].
As a Central Texas real estate expert, I can help you navigate the rapidly evolving industrial market and identify opportunities in this booming area. Contact Yee-Haw Development Marketing Group to discuss your real estate needs or to explore relocation options with our comprehensive Austin relocation guide.