Austin industrial market report
Q1 2026
Austin’s industrial market starts 2026 on a positive note with over 700,000 square feet (sf) of positive net absorption, signaling healthy occupier demand across the market. While construction deliveries have pushed vacancy rates higher, the market is actively absorbing new supply and has reached a balance as construction activity has moderated. Leasing momentum remains a key theme, with notable tenant activity reinforcing confidence in the market's trajectory. Austin's growing reputation as a hub for advanced manufacturing continues to attract high-caliber industrial users, as demonstrated by its role as home to Samsung, a newly signed lease with Baer Manufacturing, and a Flextronics operational presence in the market.
2.5 msf
Leasing activity solidifies demand
Leasing activity performed well in the first quarter of 2026, with 2.5 msf transacted across the market. Big-box space between 100,000 and 500,000 sf drove leasing demand in Q4, accounting for approximately 1,018,530 sf of activity.
705k sf
Absorption lands positive for total year end absorption
Austin’s industrial sector reported 705,000 sf of positive absorption in the first quarter of 2026. Notable transactions for the quarter include Baer Manufacturing and ZT Systems.
15.8 %
Construction deliveries elevate vacancies
The first quarter totaled 1.6 msf increasing the vacancy rate to 15.8%, even as net absorption remains positive at 705,000. Notable deliveries include multiple buildings within Park79 and McCarty Park.
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