The Opportunity | Longhorn Flex Park

Market Divergence

A Two-Tier Industrial Market

The Austin industrial market has split into two distinct segments with opposite trajectories.

Metric	Big-Box Logistics	Small-Bay Flex
Vacancy Rate (Hays County)	14.9%	4.9%
Austin Metro Vacancy	13.9% – 21.9%	<5%
Rent Trend	Declining 6-7% YoY	Stable to increasing
New Supply (2025)	9.5M SF delivered	Minimal new construction
Demand Drivers	E-commerce, 3PL	SMBs, contractors, trades
Typical Tenant Size	100,000+ SF	1,500 – 5,000 SF

Sources: Cushman & Wakefield Q4 2025, CBRE Q4 2025, Matthews Q4 2025, Newmark Q4 2025, Blue Collar Commercial Group July 2025

While institutional developers flood the market with massive logistics facilities, almost nobody is building the small-bay flex space that local businesses desperately need. This project fills that gap.

Demographics

The I-35 Growth Corridor

Buda

16,292

from 15,108 (1.2%/yr)

$123,766

Median HHI

Kyle

FASTEST GROWING

~70,177

from 45,697 (6.6%/yr)

$90,323

Median HHI

San Marcos

~76,000

from 67,553 (2.0%/yr)

$52,566

Median HHI

New Braunfels

122,675

from 90,403 (5.1%/yr)

$88,257

Median HHI

Sources: U.S. Census Bureau, World Population Review, Data USA

The County

Hays County: Fastest-Growing in the Nation

3.42%

Annual Growth

3.3%

Unemployment (vs 4.1% TX)

$89K

Median HH Income

123,100

Daily I-35 Traffic (2025)

Sources: U.S. Census Bureau, Texas Workforce Commission Dec 2025, TxDOT I-35 Link Study May 2025

Rent Analysis

Lease Rate Comparables

Market / Property	Rate ($/SF NNN)	Source
Austin Flex Average (Q2 2025)	$18.29	AQUILA / Cushman & Wakefield
Kyle, TX (Existing Flex)	$12.00 – $20.00+	Dacy Business Park Listings
SW Austin (New Construction Flex)	$16.50 – $18.00	Broker Listings 2025
Buda Flex Average	~$16.00	CommercialCafe / Broker Data
New Braunfels Industrial Average	$15.04	Broker Data 2025
Our Pro Forma Assumption	$16.00 – $17.50	Conservative Estimate