Austin industrial market report
Q4 2024
Austin’s industrial real estate market showcased remarkable activity in 2024, fueled by 10.2 million square feet (msf) of leasing transactions. A highly active fourth quarter played a pivotal role in driving this momentum, accounting for a significant share of the signed deals. Developers delivered 8.4 msf of new product to market, temporarily pushing vacancy rates to 12.0%. However, the market demonstrated its resilience with strong leasing activity and consistent absorption gains quarter-over-quarter. Furthermore, industrial sales volume reached a new peak, with 9.1 msf transacted—a 15% year-over-year increase—solidifying Austin's position as a key industrial hub.
10.2 msf
Leasing activity remains active
Strong demand was evident throughout 2024, with a total of 10.2 msf leased. Prominent tenants such as Tesla, Four Hands, and FMT collectively accounted for 1.2 msf of the transacted volume.
12.0%
Vacancy increases as new product delivers
Vacancy rates rose to 12.0%, driven by the delivery of new industrial product. However, strong leasing activity and consistent quarter-over-quarter absorption gains mitigated this increase.
8.4 msf
An active construction pipeline
In 2024, the market welcomed 8.4 msf of new industrial product, highlighted by key developments such as Buda Commerce Center, ATX 130, and Whisper 35, which together contributed 1.4 msf. This influx was effectively balanced by steady leasing activity and consistent positive absorption, mitigating the risk of oversupply.
Your source for the latest Austin industrial real estate reports
Stay on top of current trends affecting the industrial real estate sector in Austin. Gain an overall better understanding of Austin's industrial real estate market conditions, so you can better formulate strategies to overcome any obstacle and know how to best invest in industrial real estate in Austin.
Here, you’ll always find the latest industrial real estate market news so you can stay ahead. Come back often to see expert insights on the current and future of Austin industrial real estate market.