Austin Industrial Market Report

Supply concentration tests submarket momentum. Amid broad new supply pressures, certain submarkets stand out. Georgetown recorded the most absorption relative to its inventory, despite posting the highest local vacancy rate due to a large supply wave in 2023. Although not as extreme, Hays County could face similar pressures, as its 2026 completions are expected to nearly quadruple those of the previous year. This suggests local vacancy will increase after Hays County entered 2026 with the rate roughly 600 basis points higher than the previous quarter, and the submarket recording net relinquishment. Other submarkets, such as northeast and southeast Austin, improved heading into 2026, with both posting vacancy declines in the first quarter. However, performance may diverge over the remainder of the year, as northeast Austin is slated to receive only about 2 percent of the active pipeline, compared with roughly 14 percent in southeast Austin.