A Q2 2025 industrial market report for Austin compiled by Savills indicates Austin is going through a period of higher vacancy rates and lower rents.
One significant cause is rising inventory. The town’s total inventory is 121.9 million square feet, up from 103.3 million square feet in Q2 2024. That’s created a vacancy rate of 14.5%, up from 10.7% year-over-year. Deliveries are also up YOY. The two factors have driven down rent. Asking rent is at $10.91 a square foot, down 7.3% YoY from $11.71.
Savills’ outlook moving forward is with vacancy at a 5-year high, rents softening, and new supply still on the way. Austin’s industrial market continues to favor tenants. However, continued positive absorption and major commitments by firms like Tesla signal resilient demand, particularly for well-located, functional space.
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