AUSTIN – Demand for local industrial space remains high, according to JLL’s latest market report.
For example, Samsung has broken ground on phase one of its semiconductor facility in the north submarket of Taylor. The facility will total 3.2 million sf when completed. Costing an estimated $17 billion, this will be the company’s largest U.S. investment.
Together, Samsung and Tesla are behind more than one third of the area’s total industrial development.
As the need for industrial space increases, so does the price tag on square footage. Direct average asking rates reached a high of $13.77 per sf, a 75.4 percent increase from 2020.
Vacancy has also increased, moving from 4.7 percent to 5.3 percent quarter over quarter.
Although this industry is good for the region, JLL’s report says it puts pressure on small business owners, who must compete with larger companies for space.
For more on Texas’ industrial markets, read “A Bumpy Ride: Mostly ‘Ups’ for Texas Industrial Markets.”