Big Industrial Development Coming to Northeast Austin!
Northeast Austin is set to witness a significant industrial development, further expanding its already thriving market. United Properties, a Minneapolis-based company, is spearheading the project planned for over 39 acres at the northwest intersection of Howard Lane and State Highway 130, as outlined in city-submitted site plans. Referred to as Howard Lane Industrial at present, the project is situated on a triangular tract, conveniently located approximately 15 minutes from Tesla Inc.'s electric vehicle manufacturing plant. A representative from United Properties confirmed that the development will encompass a substantial 435,000 square feet.
Anticipated to commence construction in the third quarter, the project aims to conclude by the second quarter of 2025. Howard Lane Industrial falls within the extraterritorial jurisdiction just outside Austin, and Garza EMC is affiliated with the project as the civil engineer.
This expansion contributes additional square footage to a sector already favored in Austin's real estate market. With the existing industrial real estate inventory surpassing 120 million square feet for the metro area, the third quarter saw nearly record-breaking industrial construction, reaching 17.4 million square feet, up from 11.6 million the previous year, according to the latest market report from commercial real estate firm Partners.
As 2024 unfolds, expectations include a rise in inventory, potentially leading to an increase in vacancy rates. The total vacancy rates in the third quarter of 2023 soared to 8.2%, marking a substantial year-over-year surge from 3.9%. Partners forecasts a continued ascent, projecting vacancy rates to reach 9% to 10% in the third quarter of 2024.
Despite only establishing its Austin office in 2020, United Properties has swiftly become a significant player in the local real estate scene. The company secured the 9th position on ABJ's 2023 list of commercial property development firms in the Austin area, boasting 862,267 square feet of space either under development or delivered in 2022. Engaged in multifamily, industrial, and mixed-use development, United Properties relocated its burgeoning Austin office to the 15th floor of downtown's 303 Colorado tower last summer.
Source from: Austin Business Journal. https://www.bizjournals.com/austin/news/2024/01/10/large-industrial-development-northeast-austin.html