Austin Warehouse Space
Austin's warehouse space market has been moving upward going into 2012 and seems to be continuing to do so, however smaller spaces seem to be in higher demand than larger warehouse space requirements for tenants. Warehouse space comes in several options for tenants with the cheapest being Bulk warehouse storage space.
Bulk warehouse space can go as low as the 25 cents per square foot per month , however the average leasing rates for bulk warehouse space is in the mid 40 cent to mid 50 cent range gross. 
Some of the office warehouse space depending on where a tenant is looking in Austin can command a very aggressive rate. It also depends on the vacancy that is currently running within an industrial business park. Recently, we came across approximately 4500 square feet of warehouse space for a client at a rate of 43 cents a foot per month plus NNN expenses of 20 cents. This represented a first year rate only with a bump thereafter. Being that the warehouse space was a Class B type space, it was well priced at a leasing rate that is very aggressive.
Flex warehouse space is currently running around 65 cents per square foot per month on average with a trend that is moving upward in leasing rates. A challenge that comes up quite often is when the tenant wants to lease a warehouse space with a short term, short terms are less than 3 years. When you are looking to lease a warehouse space with a shorter term, the leverage in the negotiation gets watered down quite a bit.
Short term leases for warehouse space usually end up in a take it as is scenario , meaning you have to be pretty lucky to find a warehouse property that fits your needs exactly when it comes to layout considerations.
Leasing rates for warehouse space are running as low as $5.40/ square foot per year and move up to $12.00 per square foot per year. Layout considerations for warehouse space that include access for 18 wheelers for the tenant on a space that is below 5000 square feet are very hard to find and if you are able to find these warehouse properties , you should pull the trigger. Building requirements today make it hard for a builder to build a small footprint warehouse with a dock high door access.
Shire Commercial specializes in helping buyers and tenants find the warehouse space that meets their requirements , there are also creative ways we have found to help you negotiate a lease or purchase that works for you. To find out more about warehouse space in the Austin area visit our website at www.Industrial-Austin.com.
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