Austin, TX Industrial Market Report Q1 2026

The Austin industrial market in Q1 2026 reached a 14.5% vacancy rate—a more than 20-year high—driven by over 15 million square feet of new supply outpacing demand, with asking rents declining 1.1% year-over-year to $14.17 per square foot and leasing activity slowing amid economic uncertainty. Absorption totaled roughly 678,000 square feet, while development concentrated in suburban submarkets like Round Rock and Southeast Austin, with institutional capital showing renewed interest despite downward pricing pressure on both stabilized and lease-up risk properties.