What was Austin industrial vacancy in Q1 2026?

Major brokerage reports ranged from 15.7% to 22.9%. Partners Real Estate reported 15.7%, Newmark 15.9%, Colliers 22.3%, and Cushman & Wakefield 22.9%. The differences reflect each firm's geography, property universe, and methodology.

Was Austin industrial absorption positive in Q1 2026?

Yes. The reviewed sources all reported positive absorption, ranging from 122,998 square feet at Partners Real Estate to 385,000 square feet at CBRE.

How much Austin industrial space was under construction?

The reviewed Q1 2026 reports ranged from 4.5 million square feet at Cushman & Wakefield to 13.2 million square feet at Partners Real Estate. The figures should not be averaged because the sources use different coverage definitions.

What were comparable Austin industrial asking rents?

Reviewed third-party reports ranged from $11.51 per square foot for warehouse/distribution at Cushman & Wakefield to $15.04 per square foot for office-service/flex. These are comparable-market figures, not WareSpace asking or achieved rents.

Does higher vacancy mean small warehouse space is easy to find?

Not necessarily. Most brokerage inventory and new construction targets spaces far larger than 2,000 square feet. A small business still needs the right size, permitted use, loading, HVAC, power, security, and lease structure.

Are the WareSpace Austin buildings open?

No. The Domain and South Austin are both coming soon. Their opening dates, public hours, final unit mixes, availability, and building-specific offers are not yet verified.

Austin Industrial Market Report 2026

Austin entered 2026 with positive industrial demand and elevated new supply. Major brokerage reports agree on that direction, but their vacancy, construction, absorption, and asking-rent figures vary widely because each firm measures a different market.

The range is the finding. Combining the reports into one synthetic average would hide important differences in geography, building size, property type, owner-occupied inventory, flex inclusion, and timing.

15.7-22.9%

Reported Q1 vacancy range

123K-385K SF

Reported positive net absorption

4.5-13.2M SF

Reported construction range

Coming-soon WareSpace Austin buildings

Executive Summary

CBRE reported 385,000 square feet of positive net absorption, 360,000 square feet of deliveries, 6.1 million square feet under construction, and 3.2 million square feet of leasing activity. CBRE also said NNN asking rents declined $0.19 per square foot quarter over quarter.

Colliers reported 22.3% vacancy, 177,188 square feet of net absorption, 7.5 million square feet under construction, and a $12.97/SF comparable asking rent.

Cushman & Wakefield reported 22.9% vacancy, 158,590 square feet of net absorption, 4.5 million square feet under construction, and comparable asking rents of $11.51/SF for warehouse/distribution and $15.04/SF for office-service/flex.

Newmark reported 15.9% vacancy, 144,525 square feet of net absorption, a 12.1 million-square-foot pipeline, and a $14.48/SF comparable asking rent.

Partners Real Estate reported 15.7% vacancy, 122,998 square feet of net absorption, 13.2 million square feet under construction, and a $14.43/SF gross comparable asking rent.

Every per-square-foot figure in this report is third-party comparable-market data. None is a WareSpace asking or achieved rent.

Q1 2026 Austin Industrial Metrics

Source	Vacancy	Net absorption	Under construction	Comparable-market asking rent
CBRE	Not stated in the page summary	385,000 SF	6.1M SF	Down $0.19/SF QoQ
Colliers	22.3%	177,188 SF	7.5M SF	$12.97/SF
Cushman & Wakefield	22.9%	158,590 SF	4.5M SF	$11.51/SF warehouse; $15.04/SF flex
Newmark	15.9%	144,525 SF	12.1M SF	$14.48/SF
Partners Real Estate	15.7%	122,998 SF	13.2M SF	$14.43/SF gross

Why the Reports Disagree

Industrial market reports are not one standardized census. A firm may include or exclude:

Owner-occupied buildings
Flex and office-service properties
Small-bay buildings
Outlying submarkets
Buildings below a minimum size
New deliveries at different dates
Sublease space or only direct vacancy
Projects counted as under construction at different stages

The reports agree that Austin is working through a large supply cycle while demand remains positive. They disagree on the size of the measured market and therefore the exact rate.

Supply, Demand, and Tenant Leverage

Austin added substantial industrial inventory in recent years. In Q1 2026, positive absorption continued, but deliveries and construction kept availability high. Several sources described a more tenant-favorable or recalibrating market.

That does not mean every tenant has the same leverage. Building quality, size, submarket, use, loading, power, term, and the amount of ready-to-occupy space still matter. A business seeking 1,000 square feet is not shopping the same inventory as a logistics user seeking 100,000 square feet.

Austin’s Two WareSpace Buildings

South Austin and St. Elmo

WareSpace South Austin is coming soon at 210 East St. Elmo Road. City planning records describe St. Elmo as a longstanding commercial and industrial district, while the city’s later industrial-land analysis classifies it as a transition cluster experiencing land-use change.

That history creates a practical building-level question: whether the exact address, loading process, approved use, and southern-metro position fit the business. Do not substitute a neighborhood narrative or estimated travel time for those checks.

North Austin and The Domain

WareSpace The Domain, Austin is coming soon at 11209 Metric Blvd. The City identifies the site as Braker Center H, an office/warehouse complex within the broader North Burnet/Gateway regional-center context.

Use the North Austin warehouse neighborhoods guide and the Austin locations hub to compare the two sides of the metro without invented drive-time claims.

The Small-Bay Format Gap

Most brokerage statistics track conventional industrial buildings and large lease transactions. Most new construction also targets much larger users than a small business seeking 200 to 2,000+ sq ft.

A large metro vacancy number does not guarantee a right-sized unit with:

An approved business use
Loading access
Year-round HVAC
Commercial power and WiFi
Secure entry
Racking or shared equipment
A short-term lease
A complete cost the business can underwrite

The small warehouse rental guide for Austin explains how to compare those options.

What the Market Means by Business Type

Contractors and skilled trades

BLS reported 96,500 Austin-area mining, logging, and construction jobs in April 2026, up 5.0% year over year. A contractor needs secure tools and material staging, loading, approved use, access, and a base matched to the service territory. See the Austin contractor warehouse guide.

Ecommerce and product businesses

These operators need receiving, inventory control, packing, returns, and carrier staging. The Austin ecommerce warehouse guide focuses on the workflow rather than a generic square-foot target.

Inventory-sensitive businesses

Austin’s long, hot summers make HVAC important for people and many goods. Standard HVAC is not cold storage or product-specific environmental control. Read the Austin climate-controlled warehouse guide.

Cost-sensitive small businesses

Compare the complete occupancy bill rather than a listing rate. The Austin warehouse rental cost guide separates attributed market rents from NNN/CAM, utilities, equipment, deposits, and build-out.

Risks to Watch

Brokerage methodologies produce materially different vacancy and pipeline figures.
New deliveries may keep availability elevated while projects lease up.
Much of the supply is too large for a small business.
North Burnet/Gateway redevelopment can change the local mix over time.
Per-square-foot market figures exclude much of the total operating cost.
The Domain and South Austin opening dates, hours, inventory, and offers remain unverified.

2026 Outlook

Austin’s industrial market has more supply and tenant choice than the record-tight period, while positive absorption shows that demand has not disappeared. The near-term market is still working through a large construction cycle.

For a small business, the building-level decision matters more than a metro average. Choose the right size, approved use, operating features, total cost, and location for the actual workflow.

Compare both buildings on the Austin locations hub, or join the South Austin waitlist for verified updates.

Sources and Methodology

Figures are presented separately and are not averaged. All rents are labeled as third-party comparable-market data.