CSRA Warehouse Leasing Market Report Overview
Key Insights from the CSRA Warehouse Leasing Market Report
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The CSRA Warehouse Leasing Market Report has revealed some intriguing trends shaping Augusta’s industrial real estate landscape. If you're in the market—whether as a tenant, property owner, or investor—these insights will hopefully assist you in navigating what is a tight market.
Lease Rates Are Declining, But Demand Remains High
Average lease rates have dipped slightly, from $4.89 per square foot in 2023 to $4.62 in 2024. However, this isn’t due to reduced demand primarily. The decrease stems from aging inventory dominating the market. Among nine active listings, only one was built after 1982. High-quality, modern spaces are scarce (practically non-existent), driving tenants toward older facilities.
Aging Inventory Shapes the Market
The average building age of leased properties has jumped down him him him from 1992 to 1978, and on-market properties are even older, dating back to 1966. Alongside this trend, clear heights—a critical feature for many tenants—have decreased from 27 feet in 2023 to just 24 feet for available listings. This reliance on outdated facilities impacts operations and lease pricing.
Leasing Activity Doubles, Modern Supply Lags
Despite these challenges, leasing activity is thriving. Square footage leased has nearly doubled, rising from 445,896 square feet in 2023 to 864,281 square feet in 2024. Yet, with 1.7 million square feet of on-market inventory, only one building was constructed post-1990. This imbalance leaves tenants competing for limited modern spaces.
What Does This Mean for You?
The inventory that's on-market is ultimately the tip of the iceberg. Accessing other opportunities takes creativity and knowledge of the market. If you're in the market for space over the next couple of years, you should aim to be as proactive as possible, and consider making a plan at least a year before your lease expiration. Acting swiftly and decisively is critical for securing high-quality space.
Have questions about how these trends impact your real estate goals? Let’s connect and strategize on how to navigate Augusta’s dynamic industrial market.
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