MARKET TRENDS
- Deliveries continue to push vacancy upward, reaching 14.5% in Q2 2025. The market saw 8.0 million square feet (msf) delivered in the first half of 2025, an increase compared to the prior year. With over 12.0 msf under construction, further increased vacancy is likely.
- Asking rents continued to soften in Q2 2025, decreasing 7.3% year over year to an average of $10.91 per square foot (psf). Looking ahead, rents are likely to decline further as new deliveries come online and vacancy rises.
- The Austin industrial market continues to see positive net absorption, with Q2 2025 net absorption trending near the five-year average. However, absorption decreased year over year, with 3.7 msf absorbed in the first half of 2025.
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