--- title: "Austin Industrial Market Update: Vacancy, Rents, Q2 2026" description: Austin industrial vacancy, asking rents, absorption, and construction from Q2 2026 brokerage research, and what the numbers mean for owners, tenants, and buyers. image: https://www.roesingercre.com/hs-fs/hubfs/AdobeStock_1294356688.jpeg --- [Skip to content](https://www.roesingercre.com/resources/austin-industrial-market#main) [RROESINGERCOMMERCIAL REAL ESTATE](https://www.roesingercre.com/?hsLang=en) [What we do](https://www.roesingercre.com/home?hsLang=en#what-we-do) [Services](https://www.roesingercre.com/home?hsLang=en#services) [Where we focus](https://www.roesingercre.com/home?hsLang=en#focus) [Our approach](https://www.roesingercre.com/home?hsLang=en#approach) [Resources](https://www.roesingercre.com/resources?hsLang=en) [512.949.1418](tel:+15129491418)[Free consultation](https://www.roesingercre.com/resources/austin-industrial-market#contact) [Home](https://www.roesingercre.com/?hsLang=en)/[Resources](https://www.roesingercre.com/resources?hsLang=en)/Austin industrial market update Market data · Q2 2026 # Austin industrial market update Austin industrial vacancy ticked down in Q2 2026 for the first time in more than a year as leasing picked up and new construction slowed. The market still favors tenants, but the supply wave that drove vacancy up since 2023 is fading. By **Zach Roesinger**, Designated Broker, Roesinger LLCUpdated October 12, 2026[Share on LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.roesingercre.com%2Fresources%2Faustin-industrial-market)[Post on X](https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.roesingercre.com%2Fresources%2Faustin-industrial-market&text=Austin+industrial+market+update&via=LandmanZachATX) **Short answer (Q2 2026):** Austin industrial vacancy is roughly 16% to 22%, depending on which firm's inventory you use, and it declined quarter over quarter. CBRE reported 19.4% vacancy, 1.4 million square feet of net absorption, average asking rent of $13.78 per square foot (down 2.8% year over year), and 5.9 million square feet under construction, well below the 2023 peak. Tenants still have leverage; owners of well-located small-bay space are seeing it first. ## The numbers, by source Each brokerage tracks a different building inventory and size threshold, so headline vacancy differs. The direction is what matters, and every major report showed vacancy flat or improving in Q2 2026. | Source | Q2 2026 vacancy | Trend noted | | --- | --- | --- | | [CBRE](https://www.cbre.com/insights/figures/austin-industrial-figures-q2-2026) | 19.4% | Down 70 bps from Q1; up 140 bps year over year | | [Lee & Associates Austin](https://leeaustin.com/news/austin-industrial-market-q2-2026-leasing-momentum-builds-as-vacancy-begins-to-ease/) | 19.59% | First quarterly decline in more than a year | | [Cushman & Wakefield](https://www.cushmanwakefield.com/en/united-states/insights/us-marketbeats/austin-marketbeats) | 22.3% | Down from 22.9% in Q1 | | [Savills](https://www.savills.us/research_articles/256536/393511-0) | 16.1% | Flat for a second quarter; first pause in vacancy growth since 2023 | ## What drove the quarter - **Leasing came back.** CBRE counted 1.4 million square feet of net absorption, up sharply from Q1, and its 48th straight quarter of positive absorption. - **Supply is slowing.** Construction fell to 5.9 million square feet per CBRE, against a 13.3 million square foot peak in 2023, after roughly 27.9 million square feet delivered over the prior three years. - **Rents are soft but flattening.** CBRE's average asking rent of $13.78 was down 2.8% from a year earlier, with quarter-to-quarter declines narrowing. - **The north corridor led.** Savills reported Georgetown and Round Rock produced about 1.0 million square feet of positive absorption and still hold the market's largest construction pipeline. ## What it means for you ### Tenants This is still a tenant's market for larger blocks of new construction. Expect free rent, tenant improvement dollars, and flexibility on term from landlords with vacant new product. Small-bay flex in infill South and East Austin is tighter, so do not assume big-box concessions apply to a 5,000 SF unit. Lock in renewals before vacancy tightens further. ### Owners If your building is older small-bay or flex with in-place rents below market, demand from local businesses has been more stable than the headline vacancy suggests. If you compete with new construction, sharpen pricing and concessions now. Owners considering a sale should know buyers are underwriting a recovery, not a boom, and are pricing rollover risk carefully. ### Buyers and investors Elevated vacancy and slowing deliveries are the classic setup for value-add: buy partially leased product below replacement cost and lease it into a tightening market. The risk is timing; budget enough downtime and leasing cost to survive if the recovery is slower than expected. ## How to read market reports - Check the inventory threshold. Some reports exclude buildings under 10,000 or 20,000 SF, which leaves out most flex. - Separate direct and sublease vacancy. - Compare asking rent against signed deals; in a soft market the gap widens. - Look at submarkets. Austin's averages blend very different areas along I-35, US 183, SH 130, and SH 71. ## Frequently asked questions ### What is the industrial vacancy rate in Austin? In Q2 2026, reported Austin industrial vacancy ranged from 16.1% (Savills) to 22.3% (Cushman & Wakefield), with CBRE at 19.4%. All showed vacancy flat or declining from Q1. ### What is the average industrial rent in Austin? CBRE reported an average asking rent of $13.78 per square foot in Q2 2026, down 2.8% year over year. Flex and small-bay units with more office generally ask more per foot than bulk warehouse. ### Is the Austin industrial market recovering? Early signs point that way: positive absorption, lower construction, and the first vacancy decline in over a year. Conditions still favor tenants in most submarkets. Figures are from the third-party reports linked above, summarized in our own words, and are subject to revision. This page is updated quarterly. Not investment advice. Roesinger LLC is a licensed Texas real estate broker. 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