CBRE

FIGURES|AUSTININDUSTRIAL|Q42025

Vacancyclimbsaswaveofconstructiondeliveries

overwhelmssteadymarketperformance

20.4%

VacancyRate

487,416

SFNetAbsorption

3.4M

SFConstructionDelivered

352,480

SFConstructionStarts

3.8M

SFUnderConstruction

$14.22

NNN/YRDirectLeaseRate

Note:Arrowsindicatechangefrompreviousquarter.

CoreInsights

-ThevacancyrateincreasedforthefourthconsecutivequarterinQ4,hittinganall-timehighandrepresentinga10.9%increasefromQ32025.

-Solidpositivenetabsorptionof490,000sq.ft.marksQ42025asthe46thconsecutivequarterforpositivenetabsorptionwith2.4millionsq.ft.YTD.

-9.5millionsq.ft.ofnewconstructionhasdeliveredyear-to-dateas,making2025oneofthebusiestyearsfordevelopmentinmarkethistory.

-3.4millionsq.ft.ofconstructionbrokegroundthisyear,thelowestyearforstartssince2020.

-NNN/YRaskingrentsacrossallclasstypesincreasedby$0.13persq.ft.quarter-over-quarter.

HistoricalAbsorption,Deliveries,andVacancy

Sq.Ft.millionsVacancy%

25

20

15

10

5

0

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Source:CBREResearch,Q42025NetAbsorptionDeliveriesVacancyRate

*AsofQ32024,theCBREResearchstatisticalmethodologyforAustinhasbeenadjustedtoexcludeOwner/Userindustrialproperties.AsofQ32024,theCBREResearchstatisticalmethodologyforAustinIndustrialhasbeenadjustedtoensurealignmentwiththemarketandpeermarketcomparisons.Assuch,consistenthistorical/pre-Q32024statisticsforneworsubstantiallyadjustedsubmarketsarenotavailableandhistoricalmetricsreportedfortheseareaswillnotsumtohistoricalAustinmarkettotals.

1CBRERESEARCH?2026CBRE,INC.

FIGURES|AUSTININDUSTRIAL|Q42025

2CBRERESEARCH?2026CBRE,INC.

Demand

In2025,theAustinindustrialmarketrecorded2.3millionsq.ft.ofpositivenetabsorption,

markingthelowestannualabsorptionofthedecade.Thiscomparestoanaverageof4.1millionsq.ft.ofnetabsorptionannuallyfrom2020to2024.Macroeconomicuncertainty,drivenbytariffannouncementsandimplementation,createdchallengesforbothdevelopersandoccupiers.

Despitetheseheadwinds,Austin—andthebroaderU.S.industrialmarket—remainsinthelongestexpansionaryperiodonrecord.Q42025representsthe46thconsecutivequarterofpositivenetabsorptioninAustin.

Drivenbyaclearflight-to-qualitytrend,ClassAindustrialspaceaccountedfornearly75%ofthe490,000sq.ft.ofpositivenetabsorptioninAustinthisquarter..Distribution/Logistics

propertiescapturedmorethan99%ofthepositivenetabsorptionthisquarter,whileR&D/Flexspaceexperiencednegativeabsorptionfromafewmoveouts.

LeasingactivitysurgedinQ42025,climbingmorethan20%quarter-over-quarteras1.9millionsq.ft.ofindustrialspacewassigned.Thequarter’slargesttransactionsweredrivenbyasingleoccupier—aTaiwaneseoriginaldesignmanufacturer(ODM)—whichsecuredspaceinboththeFarNorthandFarNortheastsubmarkets.

Pricing

Averageaskingratesreached$14.22persq.ft.atthecloseofQ42025,up$0.13quarter-over-quarter.Muchofthisquarterlyincreaseisduetothe3.3millionsq.ft.ofClassAspace

deliveringintothemarket.Manufacturingaskingrateshavefluctuatedthemostofanyproducttypeasratesdropped26.5%quarter-overquarterand40.8%year-over-year.Flex/R&Daskingratealsodecreased5.3%quarter-over-quarterand6.9%year-over-year.Distribution/Logisticsaskingratesincreased2.8%quarter-over-quarterand3.94%year-over-year.

ClassAindustrialspacecontinuestopostloweraskingratesthanClassBandCproperties,asBandCassetsareconcentratedindenseinfilllocationswithhigherbarrierstoentryandcloserproximitytodemanddrivers.Withvacancyatrecordhighs,pricingin2026willbecome

increasinglygranular,withrentalratesvaryingmoresignificantlybylocationandbuildingfunctionality.

366,115

FarNortheast

212,793

FarNorth

197,980

Northeast

164,191

Southeast

99,400

North

70,301

RoundRock

Q4LeasingActivitybySubmarket-50,000Sq.Ft.andup

Source:CBREResearch,Q42025

Avg.DirectAskingRate(NNN/YR)

$/SF

16.0015.0014.0013.0012.0011.00

10.00

Source:CBREResearch,Q42025

FIGURES|AUSTININDUSTRIAL|Q42025

3CBRERESEARCH?2026CBRE,INC.

ConstructionActivity

TheAustinindustrialmarketrecordedoneofitsmostactivequartersforconstruction,with3.4millionsq.ft.ofnewproductdelivered.Asaresult,thedevelopmentpipelinehasfallentoits

lowestlevelsinceQ12021,followingthecompletionofnearly50%oftheprojectsunder

constructionattheendofSeptember.Constructionstartsalsohitanewlowforthesecondconsecutivequarter,withGradientTechnologyParkbeingtheonlyprojecttobreakgroundduringQ42025.

Twenty-eightindustrialbuildingsdeliveredacrosssixsubmarkets,withHaysCountyandFarNortheastleadingat1.4millionsq.ft.and1.1millionsq.ft.,respectively.Lookingahead,the

Southeastsubmarketremainstheprimarynodeforcontinuedgrowth,with2.2millionsq.ft.ofindustrialspacecurrentlyunderconstruction.

OnlyoneindustrialprojectbrokegroundinQ42025,signalingapotentialshiftinmarket

dynamics.Thislimitednewconstructioncouldhelpreducetherecord-highvacancyrate

through2026andbeyond.Asdemandforcustomizationgrowsandindustrialsupplyremainsathistorichighs,build-to-suitdevelopmentsarelikelytorepresentalargershareofthepipelinemovingforward.

103,510

FarNorth

279,571

303,112

CedarPark

South

352,480

FarNortheast

594,050

HaysCounty

2,190,457

Southeast

ConstructionbySubmarket

*AsofQ32024,owner-occupiedpropertiesarenolongerincludedinourtrackedinventoryforthisdatasegment.

NotableDevelopingProjectsbyBuildingNRA

BuildingName

Submarket

Size(Sq.Ft.)

Owner/Developer

Pre-Leased%

MustangRidgeBusinessPark–

Building2

Southeast

538,720

ClayDevelopment

0%

SanMarcosBusinessParkC

HaysCounty

377,500

LedoCapital/St.Clair

0%

BurlesonTech–BuildingB

Southeast

263,662

HoltLunsfordCommercial

0%

GradientTechnologyPark1.3

FarNortheast

176,240

iMarketAmerica

0%

GradientTechnologyPark1.4

FarNortheast

176,240

iMarketAmerica

0%

Source:CBREResearch,Q42025

ConstructionActivity

Sq.Ft.millions

16.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

14.0

UnderConstructionDeliveries

Source:CBREResearch,Q42025

FIGURES|AUSTININDUSTRIAL|Q42025

4CBRERESEARCH?2026CBRE,INC.

MarketStatisticsbySize

Avg.DirectAskingCurrentQuarterNet

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Rate(NNN/YR)

Absorption

YTDNetAbsorption

Deliveries

UnderConstruction

Under100,000sq.ft.

48,163,533

15.5

17.0

15.2

1.8

15.35

15,687

236,888

731,373

757,979

100,000-199,999sq.ft.

30,916,320

25.7

26.7

23.7

3.0

10.91

384,944

1,210,120

1,137,181

1,885,572

200,000-299,999sq.ft.

12,351,203

28.9

29.1

26.3

2.8

10.20

125,785

443,250

746,759

263,609

300,000-499,999sq.ft.

9,443,431

30.1

29.8

29.4

0.4

12.00

(39,000)

484,244

748,349

377,300

500,000-749,999sq.ft.

570,489

0.0

0.0

0.0

0.0

-

0

0

0

538,720

750,000sq.ft.

5,464,019

0.0

0.0

0.0

0.0

-

0

0

0

0

Total

106,908,995

20.4

21.4

19.4

2.0

14.22

487,416

2,374,502

3,363,662

3,823,180

MarketStatisticsbyProductType

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Avg.DirectAsking

Rate(NNN/YR)

CurrentQuarterNet

AbsorptionYTDNetAbsorption

Deliveries

UnderConstruction

Distribution/Logistics

78,837,887

22.2

23.3

21.3

2.0

13.18

546,7372,392,286

3,363,662

3,650,820

Manufacturing

4,742,224

20.2

9.0

6.7

2.4

6.98

9,000233,849

0

172,360

R&D/Flex

23,328,884

14.3

17.4

15.3

2.0

17.49

(68,321)(251,633)

0

0

Total

106,908,995

20.4

21.4

19.4

2.0

14.22

487,4162,374,502

3,363,662

3,823,180

MarketStatisticsbyClass

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Avg.DirectAsking

Rate(NNN/YR)

CurrentQuarterNet

AbsorptionYTDNetAbsorption

Deliveries

UnderConstruction

ClassA

48,475,782

29.4

30.6

28.4

3.5

11.99

360,1652,067,564

3,287,273

1,404,502

AllOtherBuildings

58,433,213

12.9

17.9

16.1

1.7

14.78

127,251306,938

76,389

2,418,678

Total

106,908,995

20.4

21.4

19.4

2.0

14.22

487,4162,374,502

3,363,662

3,823,180

FIGURES|AUSTININDUSTRIAL|Q42025

5CBRERESEARCH?2026CBRE,INC.

MarketStatisticsbySubmarket

Avg.DirectAskingCurrentQuarterNet

NetRentableArea

TotalVacancy

TotalAvailability

DirectAvailability

SubleaseAvailability

Rate(NNN/YR)

Absorption

YTDNetAbsorption

Deliveries

UnderConstruction

BastropCounty

615,133

3.0

3.0

3.0

0.0

6.0

0

10,000

0

0

CaldwellCounty

812,836

22.0

0.0

0.0

0.0

48,730

48,730

62,360

0

CedarPark

5,369,954

13.7

16.3

12.6

3.6

17.54

(31,569)

259,591

0

279,571

Central

1,352,746

7.0

7.4

7.0

0.3

12.0

22,412

(5,690)

0

0

East

5,860,942

42.0

40.4

40.1

0.4

17.72

(42,220)

348,217

0

0

FarNorth

8,111,628

23.7

26.5

25.9

0.7

17.46

(27,925)

346,448

412,470

103,510

FarNortheast

4,351,874

48.7

38.9

38.8

0.1

10.54

16,944

182,830

1,075,570

352,480

HaysCounty

13,828,078

23.9

25.0

23.4

1.6

11.55

10,184

510,871

1,401,633

594,050

North

14,769,173

11.0

14.4

12.2

2.2

15.02

54,943

(195,007)

0

0

Northeast

22,895,890

15.6

16.6

14.1

2.4

14.51

217,643

489,650

314,870

0

Northwest

315,182

3.5

11.6

11.6

0.0

17.26

6,590

5,090

0

0

RoundRock

6,146,122

24.1

22.5

19.9

2.6

13.13

34,427

(108,544)

0

0

South

2,400,865

16.8

15.2

14.3

1.0

16.81

11,479

32,048

0

303,112

Southeast

18,929,045

18.8

21.7

18.5

3.3

15.6

156,257

431,405

96,759

2,190,457

Southwest

1,149,527

29.9

33.7

32.9

0.9

22.63

9,521

18,863

0

0

Total

106,908,995

20.4

21.4

19.4

2.0

14.22

487,416

2,374,502

3,363,662

3,823,180

FIGURES|AUSTININDUSTRIAL|Q42025

MarketAreaOverview

ver

of

areoffilor

Definitions

AvailableSq.Ft.:Spaceinabuilding,readyforoccupancywithinsixmonths;canbeoccupiedorvacant.AvailabilityRate:Total

AvailableSq.Ft.dividedbythetotalbuildingArea.AverageAskingLeaseRate:Acalculatedaveragethatincludesnetandgross

leaserate,weightedbytheircorrespondingavailablesquarefootage.BuildingArea:Thetotalfloorareasq.ft.ofthebuilding,

typicallytakenatthe“dripline”ofthebuilding.GrossActivity:Allsaleandleasetransactionscompletedwithinaspecifiedtimeperiod.Excludesinvestmentsaletransactions.GrossLeaseRate:Renttypicallyincludesrealpropertytaxes,buildinginsurance,

andmajormaintenance.NetAbsorption:ThechangeinOccupiedSq.Ft.fromoneperiodtothenext.NetLeaseRate:Rent

excludesoneormoreofthe”net”costs(realpropertytaxes,buildinginsurance,andmajormaintenance)typicallyincludedinaGrossLeaseRate.OccupiedSq.Ft.:BuildingAreanotconsideredvacant.VacancyRate:TotalVacantSq.Ft.dividedbythetotal

BuildingArea.VacantSq.Ft.:Spacethatcanbeoccupiedwithin30days.ClassAindustrialarebuildingsbuiltafter2000,with32’orgreaterclearheightandESFRsprinklers.

SurveyCriteria

Includesallnon-owneroccupied,non-medicalindustrialbuildings10,000sq.ft.andgreaterinsizeinthegreatermetropolitanareaofAustin,TX.Buildingswhichhavebegunconstructionasevidencedbysiteexcavationorfoundationwork.

Contacts

JackRancier

FieldResearchAnalyst/p>

jack.rancier@

JeremyBock

FieldResearchManager

j