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The Emergence of Shallow Bay Developments in Austin’s Industrial Market

The Emergence of Shallow Bay Developments in Austin’s Industrial Market

Shallow bay developments have been a game-changer in the world of industrial real estate in recent years. These types of facilities are ideal for companies seeking flexibility and customization in their workspace. Shallow bay buildings are characterized by their large, shallow bays that allow for easy configuration and can accommodate various industrial operations. These developments have gained popularity in recent years due to their efficiency and space utilization.

Across Austin, we’re seeing shallow bay development projects underway designed to meet the diverse needs of industrial tenants. In Leander, Freehill Development Co. is pursuing a 224,000 SF shallow bay development project to accommodate users as small as 8,000 SF. Freehill Development Co. is also working on a 176,000 SF project in Georgetown, called 1300 Westinghouse. Additionally, Stream is developing multiple shallow bay buildings within their Eastside Commerce Center development in East Austin. These are just a few ways in which developers are incorporating shallow bay development in Austin.

Design trends are also playing a major role in the development of shallow bay industrial facilities. ECR’s Matt Fain recently stated that sustainability, last-mile location, and flexibility are top priorities in building design. Buildings are being designed with energy-efficient systems, strategic locations, and modular layouts that can be easily reconfigured as needs change.

Despite the growing demand for shallow bay developments in Austin’s industrial market, there are still pain points to consider. According to a report by Commercial Search, limited supply and rising costs are significant challenges for industrial developers. Though we’re still seeing a healthy amount of development within the pipeline – Q2 2023 reported 17.3M industrial projects under construction.

Shallow bay developments are making a significant impact on Austin’s industrial market, providing companies with the space and flexibility they need to thrive. As the market continues to evolve, we can expect to see more innovative shallow bay projects that push the boundaries of what’s possible in industrial real estate.

Download the Q1 2023 Austin Industrial Market Report

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