Oligarchs Invade Hays: Big Real Estate Gobbles Up San Marcos

Oh joy, another day, another national real estate firm swooping in to grab a chunk of Central Texas. This time, it's Triten Real Estate Partners making their grand entrance with their biggest industrial purchase yet.

They've snatched up the 46-acre Central Texas Logistics Center at 1551-1600 Clovis R Barker Road in San Marcos, Hays County. Because who doesn't love a good 485,885 square feet of industrial space, right?

Hays, of course, is one of the nation's fastest-growing counties, with a population boom of 55% from 2011 to 2021. Can't wait to see what that does to the rent prices.

Triten, based out of Houston, is all about those supply chain logistics. And their San Marcos portfolio is not only their first Austin-area purchase but also their largest industrial acquisition to date. It's fully leased to 15 national and regional tenants, because heaven forbid we leave any space for local businesses.

Will Hedges, a Triten partner, gleefully stated, "Triten continues to prove its tenacity in pursuing attractive industrial assets in coveted markets across the country... 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." Well, isn't that just peachy.

And where is this gem located? Right near Interstate 35, along the Texas Innovation Corridor, stretching from Austin to San Antonio. Nearby developments include an Amazon Fulfillment Center and an H-E-B Distribution Center. Because nothing says "innovation" like more big-box corporates.

Industrial Space: Because the 1% Needs More Room

Industrial tenants are still having a field day throughout the Austin metro area, according to Israel Linares, senior market analyst in Central Texas for CoStar. Demand for industrial space remains white-hot, barely cooling from its 2021-2023 levels, but still way 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.

According to Avison Young's latest report, the Austin region's industrial market "continues to show resiliency," with strong leasing activity totaling 1.7 million square feet in the third quarter of this year, bringing the year-to-date total to 3.7 million square feet.

Highlights from the report include:

• Occupancy levels slide: Despite solid gains, Austin's industrial occupancy rate has declined 1.6% to 89.4% year-over-year. Thanks, capitalism!
• Construction pipeline: Development remains active with 11.1 million square feet under construction and 5.9 million square feet already completed in 2024.
• Large tenants contributing to growth: Notable tenant move-ins include Four Hands (571,000 square feet), Tesla (430,000 square feet), plastic parts manufacturer FMT (233,000 square feet), and Pro Lift Rigging (229,000 square feet).

Because nothing says "equity" like giant corporations taking up all the space. But hey, at least they'll create some jobs, right? 🙄