Austin industrial market report
Q3 2025
Austin’s industrial market remains solid, surpassing 3.3 million square feet (msf) of positive net absorption year-to-date. Leasing activity totaled 1.6 msf in the third quarter, driven by occupiers seeking flexibility and efficiency in mid-sized spaces. Construction activity has moderated, allowing the market to effectively absorb new supply and maintain balance. The One Big Beautiful Bill continues to fuel advanced manufacturing investment, led by major commitments from Texas Instruments and SpaceX, reinforcing Texas’ position as a national leader.
1.6 msf
Leasing activity solidifies demand
Leasing activity held firm in Q3, with 1.6 msf transacted across the market. Mid-sized spaces between 10,000 and 50,000 sf saw the highest demand.
$60B
One Big Beautiful Big Bill stirs investment in Texas – $60B
Since early 2025, over 70 large manufacturing infrastructure projects (each exceeding $100 million) have been announced nationwide. In Texas, major commitments from Texas Instruments and SpaceX reinforce the state’s dominance in advanced manufacturing investment.
352k sf
Strong absorption continues
The industrial market remains strong, with 352,000 sf of absorption in Q3 and 3.3 msf year-to-date. Logistics, manufacturing, and warehouse users have driven demand, accounting for many of the year’s largest transactions.
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