Austin Industrial Figures - Q2 2026

The Austin industrial market showed early signs of stabilization in Q2 2026 as improving demand began absorbing recent supply additions. Net absorption reached 1.4 million sq. ft., increasing 244.8% quarter over quarter and 89.3% year over year, signaling a rebound in leasing activity. Vacancy declined 70 basis points to 19.4% but remained elevated, up 140 basis points from a year earlier due to newly delivered vacant space. Average asking rents fell 2.8% year over year to $13.78, reflecting continued tenant leverage, although quarterly trends pointed toward stabilization. Construction activity slowed to 5.9 million sq. ft., well below the 13.3 million sq. ft. peak recorded in 2023, which was expected to help alleviate supply pressure following 27.9 million sq. ft. of deliveries over the previous three years.

While near-term dynamics continue to favor tenants, strengthening net absorption alongside a moderating development pipeline is setting the stage for a measured market inflection. As available space is gradually absorbed and new deliveries decelerate, vacancy is poised to stabilize and trend downward. This shift should underpin a more balanced leasing environment and support firmer, more durable rent performance in the quarters ahead.