Austin Industrial Figures - Q3 2026

In Q3 2026, the Austin industrial market continued to show signs of stabilizing after a prolonged period of rising vacancy and availability. Net absorption reached 1.22 million sq. ft. in Q3 2026, but the impact on vacancy was muted by the delivery of 918,000 sq. ft. of new space, nearly 95% of which entered the market vacant.From Q3 2023 to Q3 2026, the vacancy rate increased by 10.0 percentage pointsdriven by waves of speculative developments, the majority of which delivered vacant. Despite broader market challenges, demand for large-format space fueled a strong leasing recovery, with year-to-date volume reaching 9.77 million sq. ft., surpassing the full-year leasing totals recorded in both 2024 and 2025. Although the construction pipeline has declined by 6.46 million sq. ft. since Q3 2023, developers remained active in Q3 2026, breaking ground on eight buildings totaling 1.21 million sq. ft. The new starts suggest a more selective development environment rather than a pullback in confidence, particularly amid strengthening demand for large-format space. Average asking rents fell by 2.1% year-over-year, reflecting modest downward pricing pressure despite ongoing leasing.

As the market enters the final quarter of 2026, much of the 9.77 million sq. ft. leased year-to-date is expected to translate into future absorption, supporting further occupancy gains. With the construction pipeline remaining well below its 2023 peak, future supply pressures should continue to ease, supporting a gradual rebalancing of market conditions.