Trammell Crow JV Signs Full-Building Tenant at Southeast Austin Park

Park 183. Image courtesy of Trammell Crow Co.

A partnership between Trammell Crow Co. and Clarion Partners has signed a full-building, long-term lease with American Canning for a 154,786 square-foot Class A building at Park 183 in Southeast Austin. The canning supplier is set to relocate within the industrial park, establishing a new headquarters in Building 5.

This spring, American Canning plans to move out of the 45,309 square-foot space within Building 2 of the industrial park, and fully occupy the facility at 8001 Industry Way, as part of its operations expansion. The recently delivered building includes office and storage spaces, two shrink-sleeve production lines as well as a manufacturing facility. The single-story Building 5 features 28-foot clear heights, according to CommercialEdge data.

CBRE represented both parties in the lease negotiation. Senior Vice President John Barksdale and Associate Joe Novek worked on behalf of Trammell Crow Co., while Senior Vice President Darryl Dadon represented the tenant.

Park 183

Park 183 – Building 2

At full build-out, Park 183 is set to encompass 950,000 square feet. Trammell Crow Co. and Clarion Partners delivered the 250,000-square-foot, two-building initial phase of the industrial complex in 2018. Construction on Park 183’s single-building, build-to-suit second phase began a year later and was delivered in early 2020. This 85,000-square-foot addition is fully leased to Federal Express Corp.

The newly completed third phase of the development encompasses the 162,786 square-foot Building 3 and American Canning’s nearly 155,000-square-foot new home. Last September, Move Solutions relocated its headquarters to Building 3, leasing just over 100,000 square feet of industrial space.

In November, the joint venture secured a construction loan for the upcoming fourth phase. This two-building extension will encompass approximately 300,000 square feet and is scheduled for completion later this year.

Park 183 is easily accessible, just off U.S. Highway 183, within 3 miles of State Highway 71 and some 7 miles away from Interstate 35 and SH 130. Austin-Bergstrom International Airport is less than 5 miles northeast, while downtown Austin is 10 miles away.

Sky-high demand

High demand continues to fuel leasing activity across Austin’s industrial sector, particularly in the Southeast. Based on CBRE data, Austin’s second-largest submarket—with nearly 13 million square feet of net rentable area—closed 2021 at a 3.4 percent vacancy rate, 150-basis-point lower than the metro’s already record low average. During the previous year, the Southeast submarket also led the metro for total net absorption with 973,650 square feet.

Development activity also intensified across Greater Austin. In the last quarter of 2021, the market’s development pipeline grew with 1.8 million square feet of industrial projects, rounding out the year with 44 industrial developments underway, encompassing 6.4 million square feet, according to the same source.