The Co-Warehousing Advantage for Austin’s Booming Economy

Austin’s Booming Economic Growth

It’s no secret that Austin, TX has been one of the fastest-growing metro areas in the United States over the past few years. The city traditionally known as the “Live Music Capital of the World” now boasts the new moniker “Silicon Hills” due to its growing reputation as a tech and entrepreneurial hub. The reputation is well earned as over the past few years companies such as Tesla, Apple, Oracle, and Samsung have either expanded in or partially relocated to Austin. The expansion of these tech giants alone would suggest sturdy economic growth, yet the city holds numerous indicators of a robust upward trend moving forward. Growth remains positive among all major sectors and SMEs are also on the rise due to the business-friendly environment. Austin also supports a young and highly educated workforce, 25% of whom are between the ages 20 and 34 years old. Considering such factors, Austin’s burgeoning economy seems poised to continue into the foreseeable future. So, what does this mean for SME’s trying to navigate this rapid expansion, especially those who might be operating in the same industrial markets as many of the tech giants?

The Industrial Real Estate Landscape and Warehouse Space Worries     

Such rapid economic growth also comes with the concern of tightening markets with increased competition and rents, especially when it comes to industrial space. A quick overview of Austin’s industrial real estate market reveals a strong response to this rapid economic expansion. New industrial construction has increased significantly to keep up with the demand of today, and well into the future. Austin currently has around 18.7 million square feet of new industrial space under construction. This should be good news for those hoping for a cooldown of rents, but the picture is a bit more complicated especially for SMEs. Most of the new deliveries are geared towards exceptionally large corporations. For example, nearly 3 million square feet of the new construction is attributed to Samsung’s new plant and most of the large leases in the area have gone to companies like Tesla and other massive operations. Furthermore, there is an increase in demand for smaller spaces under 100,000 square feet. This indicates an increasingly tight market for SMEs in need of industrial space. Despite record deliveries, smaller operators will still need to carefully navigate the industrial market.

Co-Warehousing and the Shared Warehouse Space Solution

The good news is that there is a solution to counter these tightening markets. Co-warehousing offers a way for SMEs to acquire industrial warehouse space with flexible terms and size requirements, even in business environments catering towards larger companies. One of the main advantages of co-warehousing is the ability to have full access to an entire facility including docks, drive-ins, and forklifts all while avoiding the trouble of long-term leases and heavy upfront costs. Our newest shared warehouse space in Austin, TX is located at 8119 Exchange Drive and features 208,000 square feet of divisible warehouse space aimed at providing businesses with an unmatched advantage. Whether you need 300 square feet for overflow storage or 100,000 square feet to run your operation, our flexible spaces can provide the exact footprint you need. Our team specializes in providing turnkey solutions, enabling businesses to become operational in as little as a week, so you can focus on what you do best. Need space for your products, a place to park your fleet, or even your own office and warehouse combo? We've got you covered.