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Logistics Property Breaks Ground on 1st Austin Project

4 months ago

The developer backed the project with a self-financed, $58 million construction loan. The post Logistics Property Breaks Ground on 1st Austin Project appeared first on Commercial Property Executive.

The groundbreaking event included speakers from Logistics Property Co. and FCL Builders, among others. Image courtesy of Logistics Property Co.

Logistics Property Co. has broken ground on 12821 Titanium St., a two-building, 408,160-square-foot industrial project in Austin, Texas., marking its first development in the area. Funding includes a self-financed construction note of $58 million, CommercialEdge information shows. Delivery is expected in 2025’s second quarter.

FCL Builders serves as the development’s general contractor. McFarland Architecture provided design services, while Garza EMC was tapped as the civil engineer. The former also filed plans on behalf of MIC Texas Corp., according to the Texas Department of Licensing and Regulation. MIC is associated with a California-based escrow company.

The project will consist of two buildings—a 174,944-square-foot rear-load property and a 233,216-square-foot cross-dock facility. Across both structures, the development will include 108 dock doors, six ramps measuring 12 by 14 feet, as well as 24 levelers and 557 parking spaces.

Building one and two will feature 60- by 52-foot and 50- by 52-foot column spacing, respectively. The clear heights are slated to reach 32 feet for the rear-load facility and 36 feet for the cross-docked property.

Furthermore, two truck courts will be available, with a shared one between the two facilities measuring 210 feet, as well as one serving only the cross-dock property at 185 feet. Also specific to the cross-dock facility will be 48 trailer parking spaces.

The development’s site is located less than 2 miles from Texas Route 130 and some 4 miles from the Austin Executive Airport. Samsung’s Austin Semiconductor Facility and Taylor Chip Plant operate some 3 and 16 miles away, respectively.

Austin’s industrial vacancy rate on the rise

As of June, Austin’s industrial pipeline had upward of 13.9 million square feet of under-construction space, a report by JLL shows. Year-to-date through June, more than 6.3 million square feet of industrial space came online.

Of these, 5.5 million square feet debuted as speculative space—more than half of the record 8 million square feet registered in 2023 during the same interval, the report goes on to show.

With an increase in supply, the total vacancy rate clocked in at 12.7 percent as of June, JLL reveals. Of the vacant available space, 65 percent is concentrated in facilities constructed since 2023.

Titan Development is slated to bolster Austin’s pipeline with a 1.3 million-square-foot industrial development in Leander, Texas. The company received city approval earlier this year and expects to break ground on the three-phase, $84 million project in the third quarter.

The post Logistics Property Breaks Ground on 1st Austin Project appeared first on Commercial Property Executive.