The first quarter in the Austin industrial market continued what were well-established trends at the end of 2021.

1. 21Q1 21Q4 22Q1
Total Inventory (SF) 53,347,050 54,807,523 56,976,667
New Supply (SF) 0 170,673 1,084,572
Quarterly Net
Absorption (SF)
207,270 769,055 1,197,087
Overall Vacancy 7.9% 4.5% 3.3%
Under Construction
(SF)
1,625,600 3,598,806 4,770,540
Overall Average Asking
Rate (W/D)
$9.25 $10.65 $13.06
Overall Average Asking
Rate (Flex)
$15.96 $17.34 $18.34
Lease
15825 Impact Way
Far Northeast| 118,132 SF
REE Automotive
Sale
1200 BMC Drive
Cedar Park | 232,868 SF
Seller: IGX Brushy Creek LLC
Buyer: Dogwood
Lease
8601 Tuscany Way
Round Rock | 101,191 SF
Diligent Delivery Systems
YOY
FORECAST
YOY
YOY
FORECAST
YOY
FORECAST
FORECAST
Industrial
Austin,
TX
22Q1
Lease
Parmer Lane & US 290
Far Northeast| 120,960 SF
US Auto Force
Boots On the Ground
The first quarter in the Austin industrial market continued what were well-established trends at the end of 2021. Industrial space
remained extremely constrained across size ranges, in direct contrast to ever-increasing tenant demand. Despite the significant
size of the industrial pipeline, land prices continued to soar for industrial land, hitting new highs for infill and tertiary sites alike.
Unemployment Rate
Market Indicators
Historic Comparison
3.3%
Austin
Unemployment
Rate
2.398%
US 10 Year
Treasury Note
3.9%
US
Unemployment
Rate
Vacancy Rate
3.3%
Net Absorption
1.1M SF
Average Asking Lease
Rates (FSG)
$14.40/SF
Under
Construction
4.7M SF
Key Takeaways
• Industrial space remains at historically low vacancy levels,
despite robust development activity
• Tenant demand for space in Austin continues to grow, driv-
ing unprecedented levels of pre-lease activity
• Development activity sets new records on a quarterly basis,
with significant supply expected to deliver by end of year and
into next
Recent Transactions
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18Q2
18Q3
18Q4
18Q4
19Q1
19Q2
19Q2
19Q3
19Q4
19Q4
20Q1
20Q2
20Q2
20Q3
20Q4
20Q4
21Q1
21Q2
21Q3
22Q1
Austin Texas US

2. Colliers | Austin | 22Q1 | Industrial Report
Industrial
Austin,
TX
22Q1
Absorption, Supply & Demand
0.0%
4.0%
8.0%
12.0%
(200,000)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Net Absorption Completions Vacancy Rate
Future Forecast
Austin has long been an under served industrial market, and it appears that the continued growth of tenant demand coupled
with exuberant developer appetite is ready to make a significant push towards right-sizing the market. We anticipate the existing
imbalance of supply and demand will continue pushing rents higher until the slated deliveries towards the end of 2022 and
into 2023 can significantly outpace pre-lease activity. Even then, with construction costs, inflation and interest rates all rising in
lockstep with demand, we may see a tempering in the pace of rent growth, but the runway in Austin appears to get longer with
every passing day.
The Market, at a Glance
It wasn’t long ago that areas like Georgetown and San Marcos were considered too pioneering for spec industrial development,
which is surprising given the rapid pace of land acquisitions in these areas. As Austin land pricing pushes ever-higher (and its
population ever-outward), the Williamson County and Hays County submarkets are poised to be the beneficiaries.
Whereas at this time last year there were less than a handful of spec industrial projects underway in Georgetown and San
Marcos, these cities now represent two of the fastest-growing areas in the Austin market. Georgetown in particular represents
more than 10 million square feet of the industrial pipeline, which itself has grown to more than 35 million square feet.
This incredible amount of development under construction and planned is in direct response to rapid population growth and
significantly higher tenant demand than the market has ever seen, and neither trend appears to be slowing. Importantly, the
market of tenants seeking more than 100,000 SF continues to offer healthy pre-lease activity for many of the projects under
construction.
Largely missing from this equation, however, are the tenants at or below 50,000 SF, who have long been the backbone of the
Austin industrial market. These incumbent tenants find themselves outgrowing their existing spaces en masse, while still being
too small to meaningfully compete for space in buildings under construction. Furthermore, with most of the construction
happening outside of Austin proper – more than 50% of the development pipeline falls outside of Travis County – many
companies are weighing the opportunity to grow against making significant geographic changes to their operations.
Tenant demand remains very strong in the Austin market,
across size ranges. Coupled with an ever-growing number
of tenant requirements from out of market, the incumbent
tenant base in Austin remains active and many groups continue
to outgrow their existing spaces. As the second-generation
market continues to hover at historically low vacancy levels,
both incumbent tenants in Austin and the new requirements to
the market continue to support healthy pre-leasing activities,
unlike we’ve seen in years past. Despite the significant size
of the development pipeline, we anticipate the healthy pre-
lease activity and extensive list of tenants searching for
space will continue to drive absorption to new quarterly
records throughout 2022, and likely into 2023, absent of any
macroeconomic factors (rising interest rates, continued supply
chain constraints) that may adversely temper tenant demand.

3. Colliers | Austin | 22Q1 | Industrial Report
Industrial
Austin,
TX
22Q1
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
Under Construction Planned Proposed
Upcoming Projects
300 Vista Ridge Drive
206,000 SF | Kyle
Hays Logistics Center 2 | Hillwood |Q2 2022
2700 Louis Henna Boulevard
176,534 SF | Round Rock
45 Crossing | Eastgroup Properties | Q2 2022
NE Corner of I30 & Pecan Street
340,200 SF | Pflugerville
130 Crossing | Iron Development | Q2 2022
900 FM 972
409,822 SF | Georgetown
GTX Logistics Park
Green Point Property Group | Q3 2022
Speculative Development Pipeline

4. Copyright © 2022 Colliers
The information contained herein has been obtained from sources
deemed reliable. While every reasonable effort has been made to
ensure its accuracy, we cannot guarantee it. No responsibility is
assumed for any inaccuracies. Readers are encouraged to consult
their professional advisors prior to acting on any of the material
contained in this report.
Kaitlin Holm
Marketing & Research Coordinator
Austin
+1 512 539 3021
kaitlin.holm@colliers.com
David Bremer, SIOR
Managing Director
Austin
+1 512 539 3014
david.bremer@colliers.com
FOR MORE INFORMATION
Travis Hicks, SIOR
Senior Vice President
Austin
+1 512 539 3005
travis.hicks@colliers.com
Chase Clancy
Vice President
Austin
+1 512 539 3023
chase.clancy@colliers.com
Submarket Existing Inventory (SF) Direct Vacancy (SF) Sublease Vacancy (SF) Overall Vacancy Rate
Quarterly Net
Absorption (SF)
Weighted Average
Asking Rate
Market Total
Warehouse/Distribution 41,329,539 1,013,023 112,704 2.7% 1,150,011 $13.06
Office Service/Flex 15,647,128 698,915 66,907 4.9% 47,076 $18.34
TOTAL 56,976,667 1,711,938 179,611 3.3% 1,197,087 $14.40
Flex/Office Service
Central 426,663 9,851 0 2.3% 3,250 $19.68
Cedar Park 675,428 86,704 0 12.8% (20,000) $16.77
East 1,172,298 57,169 0 4.9% 0 $28.00
Far Northeast 338,788 0 0 0.0% 3,750 $16.00
Far Northwest 134,875 4,600 0 3.4% 1,516 $16.50
Georgetown 216,236 0 0 0.0% 0 –
Hays County 400,392 3,565 0 0.9% 12,525 –
North 3,437,696 202,370 12,245 6.2% 22,553 $18.24
Northeast 3,327,463 220,721 0 6.6% (87,906) $15.81
Northwest 1,646,625 0 20,511 1.2% 10,995 $18.72
Round Rock 341,056 0 18,492 5.4% (18,492) $11.13
South 347,802 22,973 0 6.6% 15,872 $24.89
Southeast 3,011,352 90,962 15,659 3.5% 79,784 $15.16
Southwest 170,454 0 0 0.0% 23,229 –
TOTAL 15,647,128 698,915 66,907 4.9% 47,076 $18.34
Austin | Q1 2022 | Industrial | Market Statistics
Warehouse/Distribution
Central 668,931 122,620 0 18.3% 8,630 $16.54
Cedar Park 106,632 6,800 0 6.4% 0 $12.00
East 2,040,937 27,511 0 1.3% 34,368 $11.58
Far Northeast 6,944,911 54,460 0 0.8% 21,794 $11.12
Far Northwest 397,685 0 0 0.0% 0 $12.00
Georgetown 1,843,710 197,600 100,504 16.2% (1,600) $7.23
Hays County 5,018,357 1,500 0 0.0% 879,928 $6.79
North 8,239,505 196,293 7,200 2.5% (130,067) $10.23
Northeast 3,656,686 84,508 0 2.3% 33,391 $11.50
Northwest 1,079,275 16,788 0 1.6% 0 –
Round Rock 2,019,665 18,060 0 0.9% 20,681 $14.38
South 849,471 57,592 0 6.8% (11,192) $20.54
Southeast 8,376,769 229,291 5,000 2.8% 294,078 $12.64
Southwest 87,005 0 0 0.0% 0 –
TOTAL 41,329,539 1,013,023 112,704 2.7% 1,150,011 $13.06