Austin Industrial Landlord Outlook

The Austin industrial market continues to sputter despite Tenant's optimistic feelings about future growth.  With the U.S. economy expanding at 3% and industrial production continuing to strengthen, most industrial users have a cautious but rosey outlook about domestic industrial growth.  Mitigating this optimism, however, is the growing concern about the European debt crisis.  With Greece and Hungary teetering on the brink of insolvency, not to mention the economic challenges facing Spain, Portugal and Ireland, many tenants that were poised to expand their workforces and increase production are reevaluating the current economic climate.

As transaction velocity continues at a slow pace, Landlord's are focusing their energies on their existing tenant bases.  While the market weathers the effects of the European contagion and related downward pressure on the Euro, Tenants and Landlords alike are gearing up for the an increase in market activity and absorption the second half of 2010 headed into 2011.