--- title: I-35 South Corridor Flex Industrial Market Insight (2026) description: I-35 South Corridor flex market insight for owners, tenants and investors. Request the free I-35 South Corridor flex market report. --- [Skip to content](https://www.roesingercre.com/market-insights/i-35-south-corridor-flex-industrial-market-insight-2026#main-content) [![roesinger](https://www.roesingercre.com/hs-fs/hubfs/1787435320684.jpg?width=1400&height=350&name=1787435320684.jpg)Homepage](https://www.roesingercre.com/market-insights/roesingercre.com) - [Flex-Industrial](https://www.roesingercre.com/flex-industrial) - [Industrial Outdoor Storage](https://www.roesingercre.com/industrial-outdoor-storage) - [Land & Data Center Sites](https://www.roesingercre.com/land) - [Investment Sales](https://www.roesingercre.com/investment-sales) - [Equity Partners](https://www.roesingercre.com/equity-partners) - [Team](https://www.roesingercre.com/team) - [Insights](https://www.roesingercre.com/insights) [Contact](https://www.roesingercre.com/contact) - [Flex-Industrial](https://www.roesingercre.com/flex-industrial) - [Industrial Outdoor Storage](https://www.roesingercre.com/industrial-outdoor-storage) - [Land & Data Center Sites](https://www.roesingercre.com/land) - [Investment Sales](https://www.roesingercre.com/investment-sales) - [Equity Partners](https://www.roesingercre.com/equity-partners) - [Team](https://www.roesingercre.com/team) - [Insights](https://www.roesingercre.com/insights) [Contact](https://www.roesingercre.com/contact) # I-35 South Corridor Flex Industrial Market Insight (2026) ![Zach Roesinger](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg) Zach Roesinger October 16, 2026 *Austin to San Marcos · I-35 · Flex industrial market insight · October 2026* **I-35 South runs from the South Austin flex pockets through Buda, Kyle and San Marcos, and 2026 rewards owners who know which side of the vacancy line they're on.** Zach Roesinger, designated broker of Roesinger LLC, is a South Austin–based commercial real estate broker specializing in flex-industrial, small-bay warehouse, industrial outdoor storage (IOS), land, and sale-leaseback and 1031 exchange transactions in I-35 South Corridor and across the Austin metro and Texas Triangle. He represents tenants, owners, sellers, buyers and investors. | Austin metro industrial vacancy | **~15–16% (near record)** | | --- | --- | | South Austin flex asking rent | **~$19/SF NNN** | | Southeast submarket vacancy | **~25–28%** | | Metro industrial cap rate | **~7.5%** | Metro and submarket figures from third-party reports, Q1–Q3 2026. Sources below. ## What's happening in I-35 South Corridor For leased small-bay flex in South Austin, 2026 is a strong year to sell. You own the scarce product in a market where the common product is oversupplied, at the top rents in the metro. For vacant or half-vacant buildings, it's a stabilize-first year, because buyers are pricing vacancy risk hard. Caps near 7.5% likely don't tighten much until the pipeline clears, so waiting for a lower cap isn't the play; raising the income is. ## What it means for owners Landlords with a good tenant rolling in the next 24 months should consider a blend-and-extend: trade a longer term for a rent that blends up to today's ~$19 market. You add years to the rent roll and value to the sale. If buyers say the bank won't lend, seller financing (25–35% down, a note above bank rate, a 5–7 year balloon, a first lien) can get the deal done at a higher price. ## What it means for tenants Audit your NNN reconciliations. Capital items billed as repairs, management fees over the lease cap, and the wrong pro-rata share are common, and at about $19/SF NNN plus $4–$6 NNN, a 15% overcharge is real money. ## What it means for investors Austin owners with large equity and low yields can exchange into stabilized flex or net lease across the Texas Triangle at wider caps. The rules: 45 days to identify, 180 to close. ## I-35 South Corridor: common questions ### Is 2026 a good year to sell a South Austin industrial building? Leased small-bay flex: yes. Vacant or half-vacant: stabilize first. Land: it depends on the use. ### What's a broker opinion of value, and is it an appraisal? No. An appraisal is a licensed appraiser's report for a lender. A BOV is a broker's read on what your property would sell or lease for today, built from income at current caps, sales comps and your rents against market. Free · no obligation ## Request the I-35 South Corridor Flex Market Report Current availability, asking and effective rents, recent sales, and what buyers and tenants are paying in I-35 South Corridor. Tell us whether you own, lease, or are looking, and Zach Roesinger will send the report. Prefer to talk? Call or text [512.949.1418](tel:+15129491418) or [book 15 minutes](https://calendly.com/zroesinger/15min). **Nearby markets:** [Buda](https://www.roesingercre.com/market-insights/buda-flex-industrial-market-insight-2026) · [Kyle](https://www.roesingercre.com/market-insights/kyle-flex-industrial-market-insight-2026) · [St. Elmo](https://www.roesingercre.com/market-insights/st.-elmo-flex-industrial-market-insight-2026) · [How we help](https://www.roesingercre.com/how-we-help) **Sources:** [Newmark, Austin Industrial Market Report 2Q26](https://nmrk.imgix.net/uploads/fields/pdf-market-reports/2Q26-Austin-Texas-Industrial-Market-Report.pdf) · [ECR, Austin Industrial Market Report](https://www.ecrtx.com/austin/industrial-market-report/) · [Partners Real Estate, Austin Industrial Q1 2026](https://partnersrealestate.com/research/austin-industrial-q1-2026-quarterly-market-report/) · [Score Property Group, Austin Industrial Cap Rates 2026 (CoStar data)](https://scorepropertygroup.com/insights/austin-industrial-cap-rates-2026/) · [Cushman & Wakefield, Austin Industrial MarketBeat](https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/austin-marketbeats/industrial) General market commentary from Roesinger LLC (TREC Broker License No. 04193-BENT), not an appraisal or a valuation of any specific property. Figures are metro or submarket level and change quarterly; verify before relying on them. ## Share this post [mailto:https%3A%2F%2Fwww.roesingercre.com%2Fmarket-insights%2Fi-35-south-corridor-flex-industrial-market-insight-2026](mailto:https%3A%2F%2Fwww.roesingercre.com%2Fmarket-insights%2Fi-35-south-corridor-flex-industrial-market-insight-2026) ## Keep reading ### [SH 130 Corridor Flex Industrial Market Insight (2026)](https://www.roesingercre.com/market-insights/sh-130-corridor-flex-industrial-market-insight-2026) ### [Bastrop Flex Industrial Market Insight (2026)](https://www.roesingercre.com/market-insights/bastrop-flex-industrial-market-insight-2026) [![roesinger](https://www.roesingercre.com/hs-fs/hubfs/1787435320684.jpg?width=1400&height=350&name=1787435320684.jpg "roesinger")](https://roesingercre.com) - [Flex-Industrial](https://www.roesingercre.com/flex-industrial) - [Industrial Outdoor Storage](https://www.roesingercre.com/industrial-outdoor-storage) - [Land & Data Center Sites](https://www.roesingercre.com/land) - [Investment Sales](https://www.roesingercre.com/investment-sales) - [Equity Partners](https://www.roesingercre.com/equity-partners) - [Team](https://www.roesingercre.com/team) - [Insights](https://www.roesingercre.com/insights) --- [Texas Real Estate Commission Information About Brokerage Services](https://www.roesingercre.com/hubfs/IABS_Roesinger.pdf)  |  [Texas Real Estate Commission Consumer Protection Notice](https://www.trec.texas.gov/forms/consumer-protection-notice) Roesinger LLC · TREC Broker License No. 04193-BENT · Zachary Roesinger, Designated Broker, TREC No. 733765 · [512.949.1418](tel:15129491418) · [info@RoesingerCRE.com](mailto:info@RoesingerCRE.com) [Privacy Policy](https://www.roesingercre.com/privacy-policy) · [Legal](https://www.roesingercre.com/legal) · © 2026 Roesinger LLC. 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