While much of Austin’s commercial real estate market faces headwinds, one property type continues to demonstrate resilience: small-bay industrial and warehouse space, according to a longtime local property manager.
“Office warehouse is still pretty popular,” says Mike Martine, VP of Martine Properties, noting that these properties are attracting both tenants and investors even as other sectors struggle. “One of my clients loves them. And he has me buying just little single tenant deals,”he adds.
The Appeal of Steady Returns
According to Martine, investors are drawn to these properties primarily because of their reliable performance. “A typically steady cash flow… just good long term,” he explains, highlighting how these assets contrast with more volatile property types in the current market.
Unlike the oversupplied office and multifamily sectors, small industrial properties appear to maintain healthy occupancy levels. “I can keep those things full,” Martine notes, suggesting demand remains strong for appropriately sized industrial space.
Supply-Demand Balance
While Austin has seen significant development in recent years, the industrial sector appears to have avoided the overbuilding that’s affecting other property types. Martine indicates there isn’t an oversupply problem in this segment, helping maintain stable occupancy rates and consistent returns for owners.
Market Position
The continued strength of small-bay industrial properties stands out particularly given broader market conditions. “Prices on certain stuff have come way down,” Martine says of the overall market, but suggests industrial properties have been more insulated from these pressures.
