Austin, TX Industrial Market Report Q3 2026

Q3 Leasing Runs 3.3x Last Year, Yet Vacancy Rises to 14.0%

Demand

Austin absorbed 2.64M SF in Q3 2026, against 791K SF in the same quarter last year. Vacancy is 14.0%, 122 bps looser than Q3 2025. Southwest/West Austin is the tightest submarket at 5.0% vacancy; South Austin/Hays County leads rent growth at +1.2%. Trailing-12-month absorption of 6.17M SF is up from 4.68M SF a year earlier. Asking rent of $14.22/SF is down 0.8% year over year and 1.1% below the Q2 2025 peak of $14.37/SF.

Supply

Austin delivered 2.99M SF in Q3 and 9.81M SF over the trailing twelve months (-13% versus the prior TTM period). Space under construction equals 8.0% of inventory, concentrated in Caldwell County at 98.2% of its stock. Annual deliveries peaked at 18.56M SF in 2022. Q3 deliveries were 75% above last year’s 1.70M SF. The 14.94M SF pipeline equals about nine and a half quarters of absorption at the trailing pace.

Investment Market

Austin recorded $1.6B in sales over the trailing twelve months, +27% against the prior TTM period; Q3 accounted for $361M. The high-water mark in this series is $1.6B in 2021.

Austin cap rates average 7.57%, up for 19 straight quarters. Pricing sits at $203/SF, higher for 16 consecutive years. The cap rate is 133 bps above the Q4 2021 low of 6.24%.