95 acres near Austin airport to be transformed into industrial space
Trammell Crow Co. and Clarion Partners announced Monday that they will jointly build Park 183 — a nearly 1 million-square-foot industrial park at the southwest corner of U.S. Highway 183 and Burleson Road in Southeast Austin.
The 95-acre site is diagonal from Austin-Bergstrom International Airport.
Phase I will break ground shortly after Jan. 1 and deliver 247,000 square feet of spec space around November 2017. At build-out, 964,000 square feet will be delivered, providing substantial truck access and loading capabilities.
The project is located in a Triple Freeport Exemption Zone in which taxes are waived on short-term inventories.
Brad Maples, senior vice president with Trammell Crow, said the industrial space will reflect a high-end image — with expansive glass and contemporary design — at value lease rates.
“Park 183 was specifically conceived to offer tenants Class A space at a price point that is far below all other new product in the market and more in line with historical averages,” he said in a statement.
STG Design is the architect. The civil engineer is Jones/Carter, mechanical engineering is being done by Wylie Consulting Engineers, and the structural engineer is Bihner Chin Engineering Ltd. A general contractor has not yet been selected.
Scott Flack, president of Live-Oak Gottesman brokerage and an industrial real estate expert, said the project makes great sense given the millions of dollars of road improvements underway along U.S. Highway 183.
“The site really keys on the increased mobility created by improvements to Highway 183, and the southeast industrial submarket is fairly dynamic with [existing] infrastructure, which allows for a myriad of different industrial users,” Flack said.
Warehouse and manufacturing space in the southeast submarket is practically nonexistent, according to the second quarter industrial report published by REOC Austin — about 2.5 percent vacancy of about 5.1 million square feet of inventory.
Lease rates have inched up slightly between second quarter 2015 and second quarter 2016 from 56 cents per square foot to 58 cents per square foot, according to CBRE market research reports.
The amount of industrial space under construction is substantial — about 760,000 square feet, based on REOC Austin data.
The largest project is Commerce Center South, four buildings that will deliver about 330,000 square feet early next year. The developer on that is VanTrust Real Estate LLC headquartered in Kansas City, Missouri.
Burleson Commerce Park is scheduled to deliver 189,000 square feet in the next few months. The developer on that is Industrial Group Southwest, which is headquartered in Schertz, Texas.
In South Austin, Trammel Crow and Clarion Partners are also finishing up Expo Business Park 13, another collaboration at 6231 E. Stassney Lane for about 136,000 square feet.
Near the airport, Austin-based Zydeco Development is delivering Met Center II Building 13 — about 57,600 square feet. Earlier this year Zydeco completed Building 12 — about 72,000 square feet.