MARKET TRENDS
- The construction pipeline is slowing, falling below 10.0 million square feet (msf) for the first time since mid- 2022. This suggests that development activity could continue to decelerate amid higher vacancy.
- The Austin industrial market remains tenant-favorable, with vacancy up 220 basis points (bps) year over year. However, the pace at which vacancy is climbing is beginning to slow, up just 40 bps from Q4 2025.
- Net absorption totaled 3.7 msf over the last four quarters, with 0.8 msf recorded in Q1 2026. This illustrates that Austin shows signs of sustained demand.