This document provides an overview of the industrial real estate market in Austin, TX for the first quarter of 2021. Key points include: - Net absorption was 207K SF with vacancy at 7.9%, continuing the positive trends seen in late 2020. - Population growth in Austin remains very strong at 184 people per day, fueling demand for industrial space from retailers, manufacturers, and logistics companies. - Over 1.6M SF of new industrial space is under construction, but continued strong demand is expected to absorb space as it delivers through 2022.

1. 20Q1 20Q4 21Q1
Total Inventory
(in Thousands of SF)
50,973.45 52,251.49 53,347.05
New Supply
(in Thousands of SF)
703.19 455.00 –
Overall Vacancy 8.6% 7.3% 7.9%
Under
Construction
(in Thousands of SF)
1,067.47 1,450.69 1,625.60
Average Asking
Rates (W/D)
$9.34 $8.90 $9.25
Average Asking
Rates (Flex)
$14.54 $14.65 $15.96
Lease
Plum Creek Industrial Center I
Hays County | 62K SF
Viking SupplyNet
Lease
1307 Smith Road
East | 88K SF
Goodwill Industries
Lease
Settlers Crossing 4
Round Rock | 23K SF
Westwinds Wholesale Doors
Lease
Settlers Crossing 3
Round Rock | 33K SF
Ametrine
Sublease
Raceway Crossing 3
North | 99K SF
Uplift Desk
YOY
FORECAST
YOY
YOY
FORECAST
YOY
FORECAST
FORECAST
Industrial
Austin,
TX
21Q1
Boots On the Ground
The first quarter kicked off what promises to be one of the most transformative years in recent memory for Austin’s industrial
real estate market. Continuing upon the trends that began in mid- to late 2020, Austin continued to benefit from rapid
population growth, e-commerce demand accelerated by the pandemic, and a burgeoning automotive manufacturing market that
is reshaping not only the built environment, but also the skilled labor force throughout the region.
Unemployment Rate
Market Indicators
Historic Comparison
5.3%
Austin
Unemployment
Rate
1.55%
US 10 Year
Treasury Note
6.0%
US
Unemployment
Rate
Vacancy Rate
7.9%
Net Absorption
207K SF
Average Asking Lease
Rates (FSG)
$11.48/SF
Under
Construction
1.6M SF
Key Takeaways
• Population growth continues at a formidable rate: +184 people/
day are making the move to the greater Austin metropolitan
area
• Abundant human capital hugely attractive for companies look-
ing to enter the Austin Market; Tesla expected to hire 10,000
employees in order to service upcoming Gigafactory
• Driven by increasing e-commerce demand, retailers and 3PLs
on the hunt for additional W/D space
Recent Transactions
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Jan
2018
Mar
2018
May
2018
Jul
2018
Sep
2018
Nov
2018
Jan
2019
Mar
2019
May
2019
Jul
2019
Sep
2019
Nov
2019
Jan
2020
Mar
2020
May
2020
Jul
2020
Sep
2020
Nov
2020
Jan
2021
Mar
2021
Austin Texas US

2. Colliers | Austin | 21Q1 | Industrial Report
Industrial
Austin,
TX
21Q1
Absorption, Supply & Demand
0.0%
4.0%
8.0%
12.0%
(400,000)
(200,000)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Net Absorption Completions Vacancy Rate
Future Forecast
With demand for space far exceeding supply, we continued to see a steady drip of new spec industrial projects announced in the
first quarter, pushing the geographic boundaries of the market and highlighting investors’ fervent appetite for exposure to all
that Austin has to offer. This investor interest continues to explore markets such as Georgetown to the north, Hutto and Manor
to the east, as well as Hays County through San Marcos to the south, often in places where land basis is more affordable despite
the additional travel times inherent in servicing the overall Austin market.
With a healthy amount of the spec industrial pipeline set to deliver in late 2021 and early 2022, we expect industrial pre-leasing
activity to remain extremely strong, as the market is still without an abundance of space across any size ranges, but in particular
for big blocks of space.
The Market, at a Glance
Austin continued to grow at an amazing clip, with more than 184 people moving to the greater Austin area every day. Census
numbers show that Austin’s five-county population grew nearly 3% year over year to nearly 2.3 million people, making Austin the
fastest-growing major metropolitan area in the country.
This is easily understood by anyone trying to buy a home in Central Texas, and is backed up by building materials suppliers,
HVAC distributors, electrical distributors, or any other company servicing the home building industry in Austin. Many of these
companies continue to strain within the confines of their existing warehouse solutions, and are competing for expansion space
and short-term overflow storage throughout our market.
In lockstep with the area’s population growth, the MSA continues to add jobs, many of which will be in the new but quickly
scaling automotive industry in Austin. In addition to the 10,000 jobs that Elon Musk has promised to hire at Tesla’s new facility
in East Austin, an entire cadre of Tier 1 and Tier 2 suppliers are eagerly anticipating their contract awards from the company
to begin their own commencement of build-outs and hiring. As of the first quarter, however, we’ve not yet seen any publicly-
announced contract awards from Tesla.
All of this growth continues to attract retailers and 3PLs wanting to get their products as close as possible to consumers in the
area. Rumors of additional Amazon warehouses abound, in addition to other Fortune 500 retailers looking for distribution
facilities in town, much of which is centered around big blocks of space (100,000+ SF).
Austin continues to emerge as an important industrial hub,
clearly evidenced by the mounting investment within the city
despite the lingering presence of pandemic-related challenges.
Quarterly absorption of ±207K SF (vs. Q4 2020 absorption
of ±1,127K SF) coupled with tightening vacancy rates (Q1
2021 vacancy down 70 basis points vs. Q1 2020) illustrate a
growing, positive trajectory that will likely continue as more
e-commerce companies enter the market and/or expand their
footprint. To relieve this pressure for space, projects totaling
+1.6M SF are now under construction while an additional
+13.5M SF of space has either been planned or proposed.

3. Colliers | Austin | 21Q1 | Industrial Report
Industrial
Austin,
TX
21Q1
0
300,000
600,000
900,000
1,200,000
1,500,000
1,800,000
2,100,000
2,400,000
2,700,000
3,000,000
Far Northeast Georgetown Hays County Northeast Round Rock Southeast
Under Construction Planned Proposed
Upcoming Projects
Apr ‘21
Apr ‘21 Dec ‘21
Dec ‘21
Plum Creek, Bldg. I & II
444,058 SF | Hays County
Northpoint Development | Q2 2021
NorthPark 35, Bldg. I & II
331,030 SF | Georgetown
Titan Development | Q3 2021
Whisper San Marcos, Bldg. I
90,000 SF | Hays County
Stream Realty | Q2 2021
Hays Commerce Center, Bldg. III & IV
174,913 SF | Hays County
HPI | Q4 2021
Speculative Development Pipeline

4. Copyright © 2021 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.
John O’Sullivan
Research Associate
Austin
+1 512 539 3012
john.o’sullivan@colliers.com
David Bremer
Managing Director
Austin
+1 512 539 3014
david.bremer@colliers.com
FOR MORE INFORMATION
Travis Hicks
Vice President
Austin
+1 512 539 3005
travis.hicks@colliers.com
Chase Clancy
Associate 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 38,846,462 2,867,094 565,923 8.8% 180,760 $9.25
Office Service/Flex 14,500,583 651,843 113,085 5.3% 26,510 $15.96
TOTAL 53,347,045 3,518,937 679,008 7.9% 207,270 $11.48
Flex/Office Service
Central 391,323 34,954 5,375 10.3% (4,601) $14.37
East 1,116,545 10,453 – 0.9% – –
Far Northeast 338,788 8,100 – 2.4% 4,350 $17.07
Far Northwest 133,390 4,533 – 3.4% 2,244 $14.67
Hays County 420,392 26,143 – 6.2% 5,115 –
North 3,436,533 148,711 3,744 4.4% 40,878 $17.23
Northeast 3,143,877 213,154 – 6.8% (7,899) $12.61
Northwest 1,646,625 27,195 4,311 1.9% (16,200) $16.62
Round Rock 341,056 24,789 – 7.3% 10,105 $10.62
South 323,824 – – 0.0% – $33.00
Southeast 3,061,005 153,811 99,655 8.3% (7,482) $15.03
Southwest 147,225 – – 0.0% – –
TOTAL 14,500,583 651,843 113,085 5.3% 26,510 $15.96
Austin | Q1 2021 | Industrial | Market Statistics
Warehouse/Distribution
Central 749,181 63,712 – 8.5% (1,784) $13.17
East 2,687,306 256,503 27,412 10.6% 17,280 $9.14
Far Northeast 3,179,333 224,475 33,600 8.1% 54,800 $10.38
Far Northwest 544,884 15,500 – 2.8% (15,500) $12.00
Hays County 4,113,075 459,699 46,253 12.3% 23,205 $6.50
North 9,651,206 533,568 217,236 7.8% (159,785) $9.42
Northeast 4,029,233 283,490 55,474 8.4% (47,444) $9.74
Northwest 1,099,878 18,088 – 1.6% 45,360 –
Round Rock 2,675,819 300,119 – 11.2% 296,243 $12.38
South 1,182,808 37,595 – 3.2% 121,517 $14.07
Southeast 8,846,734 674,345 185,948 9.7% (153,132) $8.98
Southwest 87,005 – – 0.0% – –
TOTAL 38,846,462 2,867,094 565,923 8.8% 180,760 $9.25