Q3 2011 Austin Industrial Landlord Outlook

The Austin Industrial market saw another quarter with positive absorption during Q3 2011.  Leasing velocity was down, relative to the first half of the year, but we still saw a quarter million square feet of space taken off the market.  The overall vacancy rate inched down a half a percentage point to 18% and rental rates remained stable.

Many tenants are optimistic about their prospects for growth over the next 12 months, but most are still wary of the gridlocked political situation in Washington D.C. and the overall uncertainty in the global marketplace.  The end of the 3^rd quarter was marked by an increase in prospect activity which points towards another quarter of positive absorption.