Where is the majority of Austin’s Industrial & Warehouse Space located?

May 10, 2013

In one of our last blog posts we provided a checklist of questions and answers that you should consider when searching for and leasing industrial space. In this post we want to talk a little more about finding the right location in Austin, Tx.

In Austin there are a few small pockets of industrial and warehouse space here and there however the majority of it is located in North Central, Northeast, and Southeast Austin. See map below.

industrial space Austin TX

With office space a lot of companies choose the location based on the proximity to their homes however when dealing with industrial space you must consider a number of other things such as distribution (pickups and deliveries), proximity to the airport, customer base, proximity to major highways, etc.

Areas in Austin to Consider When Leasing Industrial Space

North Central Austin is now considered the center of the Austin Metro area. Located along Hwy 183 between Mopac and I-35 this area is ideal for those companies that need easy access to major highways and who receive and deliver goods to North and South Austin. It’s also more convenient for those business owners live on the West side of town.

Northeast Austin is located around the intersection of I-35, Hwy 290, and Hwy 183. A lot of companies receive and deliver goods to other cities (e.g. Dallas, Houston, San Antonio) so this location makes it easy for 18 wheelers to make a quick stop and go. The proximity to the Airport is nice also.

Southeast Austin is considered to be around I-35 and Hwy 71. There are a lot of big industrial parks in this area and it’s ideal for those who need close proximity to the airport as well as easy ingress and egress for delivery trucks to pick up and deliver your products.

How Much Does it Cost to Lease Industrial and Warehouse Space in Austin?

Overall Industrial lease rates in Austin average $6 to $13 sf (this includes base and nnn) however that depends on the location and condition and security of the property. If you just need a basic old metal building you can typically find deals on the lower side, however If you want to be in a nicer more secure industrial or flex building than expect to pay $11 to $13 sf. Some landlords quote monthly rental rates while others quote rates yearly. For example one landlord might quote a rate of $0.65 + $0.25 sf per month or $0.90 sf per month. With 10,000 sf that would equate to $9,000 per month (10,000 sf x $0.90 sf). Another landlord might quote a yearly rate such as $10.80 sf per year or $9,000 per month (10,000 sf x $10.80 / 12).

Finding the right industrial location in Austin can take some time if you are not familiar with the area and don’t know what amenities are available in each location. To make the search process easier consider hiring a commercial realtor who can guide you through the process and save you time.

Topics: Business Operations

Nathan Smith

Austin Tenant Advisors

Nathan Smith is a commercial real estate advisor and owner of Austin Tenant Advisors, a local commercial real estate company that specializes ONLY in representing the best interests of business owners and companies in the search, selection, negotiation, and occupancy of office, retail, and warehouse space. Early on Nathan saw a need for business owners and companies to have the same expert advice as Landlords when it comes to leasing and purchasing commercial properties. In fact, he doesn't want to just level the playing field, he strives to educate and advise them in a way that puts them in a position of strength so that they find the best spaces and negotiate the best deals possible. Nathan graduated from Texas State University and had the opportunity to serve his Country in the Air Force Reserves. Nathan is married to Jennifer and has two children. He is also a die-hard cyclist and runner and has competed in numerous short and long distance triathlons and Ironman competitions.
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