Local Tenant Inks 570 KSF Industrial Lease in Austin
A furniture wholesaler has leased an entire building at this 800,000-square-foot campus.
Four Hands, an Austin-based high-end furniture wholesaler, has leased the entire Building 2 of Airport Logistics Center in Del Valle, Texas. At 570,000 square feet, the deal marks the largest industrial lease in greater Austin so far this year, according to the participants.
JLL represented the landlord, Dallas-based Dalfen Industrial, which developed the 800,000-square-foot campus. Endeavor Real Estate Group assisted the tenant.
The property is in the Airport submarket of the Texas capital. The company will use the space to consolidate operations, which are currently in other locations in the metro.
Though industrial development has been robust in Austin recently, the building at 6106 Ross Road was the only available space larger than 300,000 square feet close to Four Hands’ operations, according to JLL.
The lease makes Four Hands one of the largest industrial tenants in the greater Austin market, with a total footprint of 1.2 million square feet. That footprint includes the Airport Logistics Center commitment and represents an increase in Four Hands’ space even after some of the leases at its current locations expire next year.
JLL Senior Managing Director Ace Schlameus and Senior Vice President Kyle McCulloch handled the transaction on behalf of Dalfen. Chad Marsh, managing principal at Endeavor, represented Four Hands.
Austin industrial development still robust
Industrial markets nationwide have seen building booms in response to pandemic-era demand for space. Austin, with an expansive overall economy, has enjoyed a particularly robust industrial market in recent years.
Some 5.5 million square feet of industrial spec space came online during the first half of 2024 in greater Austin, a pace that thus far exceeds development last year. During all of 2023, developers delivered a record 8 million square feet of industrial in the market, JLL notes.
The influx of space has driven the overall Austin vacancy rate to 12.7 percent, with about 10.8 million square feet unoccupied, though roughly 20 percent of that has been leased and will be occupied in the near future. Of the remainder of the vacant space, about 5.6 million square feet is concentrated in structures that were completed last year or this year, JLL reports.
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