27 Apr Jon Cartu Announces Demand for Industrial Space Shows No Signs of Waning
AUSTIN, TX—An 85,000-square-foot class-A distribution and sorting facility, 8233 Industry Way, was recently completed by the Austin office of Trammell Crow Company, along with JV partner Clarion. The facility, which sits on 13 acres, was a build-to-suit development for FedEx Express.
The new building is located within Park 183 and marks the completion of the second phase of development at the industrial park, which broke ground on its first phase in 2017. Park 183 currently consists of three buildings totaling more than 330,000 square feet of class-A industrial space.
FedEx joins a growing list of distribution, manufacturing and e-commerce clients that occupy space at Park 183 including Home Trends and Design, American Canning Company and Architectural Division 8.
“This project’s strategic location at the corner of Burleson Road and US-183 in the Southeast submarket of Austin provides unparalleled access to the heart of central Austin, which is only eight miles away,” said Matteo Pacifici, a senior vice president with Trammell Crow Company. “The larger Park 183 development is meeting the growing demand for space from industrial users in Austin, especially advanced logistics space in this particular submarket of the city.”
Park 183 is located less than two miles from State Highway 71 and near major transportation arteries, including Interstate 35 and State Highway 130. Tenants at the park benefit from 183 South, which connects US-290 to State Highway 71 with uninterrupted freeway from southeast Austin to far Northwest Austin. The site, which sits adjacent to Austin Bergstrom International Airport, is located within the Triple Freeport Exemption Zone.
“We expect that demand for industrial space, especially for final-mile distribution buildings, will continue to increase in Austin as the population center grows and as its tech savvy consumer base makes more purchases online,” Pacifici tells GlobeSt.com. “The Southeast submarket is particularly desirable due to its proximity to Austin-Bergstrom International Airport, its convenient access to the major roadways and its close proximity to Austin’s major population centers. The third phase of the project has been designed with specific attention to the needs of today’s industrial, logistics and e-commerce users that require projects with specific standards for building depths, clear height, parking and circulation.”
The third phase of development at Park 183 calls for construction of two more buildings totaling 300,000 square feet. Phase III is on track to be completed during third quarter 2021, with all major infrastructure work finished in conjunction with the completion of the FedEx facility. An additional 20 acres of developable land also remain available at Park 183 for another build-to-suit project, which could deliver an additional 300,000 square feet of industrial product to the area.
Vacancy increased 30 basis points to 10.8% in first quarter 2020, driven largely by the delivery of three southern metro projects totaling 432,919 square feet that were collectively only 20% pre-leased, according to a CBRE first quarter report.