Yeehaw! Big-Time Real Estate Cowboys Storm Central Texas

Hold onto your hats, folks! A Texas-sized real estate firm just made a mammoth debut in Central Texas. Triten Real Estate Partners just snatched up the colossal Central Texas Logistics Center in San Marcos, right smack in the middle of Hays County—you know, one of the fastest-growing counties in the nation with a whopping 55% population boost from 2011 to 2021.

This ain't no small-time deal. We're talking about 46 acres, seven buildings, and a staggering 485,885 square feet of industrial space. Triten, hailing from Houston, isn't messing around. They're specialists in supply chain logistics, and this San Marcos portfolio marks their first and largest industrial acquisition in the Austin area. Now that's some serious Texas-sized ambition!

Will Hedges, a Triten partner, had some choice words about the deal: “Triten continues to prove its tenacity in pursuing attractive industrial assets in coveted markets across the country. In the past year alone, we have broadened our traditional industrial and industrial outdoor storage portfolio to include properties in Atlanta, Dallas, Philadelphia, and Washington, D.C. We are pleased to add Austin to that growing list, as we now find ourselves positioned in one of the fastest-growing counties in the nation.”

The Central Texas Logistics Center is prime real estate, sitting near good ol’ Interstate 35 along the Texas Innovation Corridor. This stretch from Austin to San Antonio boasts a population of 4.7 million and a labor force of 2.4 million. And guess who's moving in next door? None other than Amazon and H-E-B. Talk about being in good company!

Industrial Space: The Hunger Games Continue

If you thought the demand for industrial space was big before, you ain’t seen nothing yet. Experts say the Austin region's appetite is still going strong.

Israel Linares, senior market analyst in Central Texas for CoStar, told the Statesman that industrial tenants are as active as ever. In just the first half of this year, tenants leased over 4.5 million square feet. Sure, the market's cooled a tad from 2021 to 2023 levels, but it’s still above pre-pandemic averages.

"Looking back at 2023, a little over 13 million square feet were leased, which was a landmark year for Austin. It matched some of the historic leasing volumes we saw in 2021 and 2022," Linares said.

Manufacturing giants like Samsung and Tesla are setting up shop, making the industrial scene even hotter. Avison Young’s latest report notes strong leasing activity, with big players like Four Hands (571,000 square feet), Tesla (430,000 square feet), FMT (233,000 square feet), and Pro Lift Rigging (229,000 square feet) contributing to the growth.

So there you have it, folks. Austin’s strategic location and growing demand are positioning it for a bright future. Y'all better get ready, because this ride is only getting wilder!