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East Austin's industrial corridor — anchored by the SH 130 toll road, Tesla's Gigafactory, and proximity to Austin-Bergstrom International Airport — is the most active development submarket in the Austin metro and one of the most watched in the Sun Belt. The numbers tell a story of rapid supply-side expansion meeting a slower demand environment: 9.5 million SF delivered in 2025 alone against 4.1 million SF of absorption, pushing vacancy to a two-decade high near 15%. The oversupply, however, is nuanced. The glut is concentrated in newer, larger-format speculative product along the SH 130 corridor — mid-size rear-load buildings in the 100K-300K SF range that were built for a market that has not yet fully materialized. Smaller, well-located legacy product in the $10-12/SF range remains functionally full. Meanwhile, institutional capital continues to flow in: $842 million in investment sales across 65 deals in 2025, the strongest volume since 2022, with Ares, Manulife, EQT, and MIG Capital all making acquisitions. The near-term outlook is tenant-favorable through late 2026. Concessions including free rent and TI allowances are available for the first time in years. But the long-term structural thesis for East Austin industrial remains intact. Tesla's Terafab announcement ($25B semiconductor venture), Samsung's $17B Taylor fab coming online, and Compal Electronics' 578K SF market entry all point to a submarket that is building the industrial ecosystem around advanced manufacturing and logistics that Austin has historically lacked. Developers like Lovett Industrial (Houston) and ALTO Real Estate entering the market for the first time signal continued institutional conviction in the SH 130 corridor's trajectory.
Average rent: $11.75/SF. Range: $10.86 - $14.71/SF. YoY growth: -6.9%.
Vacancy rate: 15.2%. Trend: rising. East Austin industrial vacancy has risen sharply to multi-decade highs, driven by a historic construction cycle that delivered 9.5M SF in 2025 alone — outpacing absorption by roughly 2:1. The SH 130 corridor, the epicenter of speculative development, carries the heaviest vacancy burden. Newer product (delivered since 2021) accounts for the majority of vacant space, while older, well-located smaller product remains relatively tight. Concessions including free rent and TI allowances are now available for the first time in years, firmly shifting leverage to tenants.Net absorption: 4,100,000 SF.
Average cap rate: 7.5%. Range: 5.5% - 8.3%.
Under construction: 14,100,000 SF. Planned: 7,000,000 SF. Deliveries next 12 months: 10,000,000 SF.
Population: 2,350,000. Growth rate: 2.3%. Median household income: $85,000. Job growth: 3%.
Austin, TX
Avg Rent
$11.75
/SF NNN-6.9% YoY
Vacancy
15.2%
Avg Cap Rate
7.5%
5.5–8.3%Net Absorption
4.1M SF
East Austin's industrial corridor — anchored by the SH 130 toll road, Tesla's Gigafactory, and proximity to Austin-Bergstrom International Airport — is the most active development submarket in the Austin metro and one of the most watched in the Sun Belt. The numbers tell a story of rapid supply-side expansion meeting a slower demand environment: 9.5 million SF delivered in 2025 alone against 4.1 million SF of absorption, pushing vacancy to a two-decade high near 15%.
The oversupply, however, is nuanced. The glut is concentrated in newer, larger-format speculative product along the SH 130 corridor — mid-size rear-load buildings in the 100K-300K SF range that were built for a market that has not yet fully materialized. Smaller, well-located legacy product in the $10-12/SF range remains functionally full. Meanwhile, institutional capital continues to flow in: $842 million in investment sales across 65 deals in 2025, the strongest volume since 2022, with Ares, Manulife, EQT, and MIG Capital all making acquisitions.
The near-term outlook is tenant-favorable through late 2026. Concessions including free rent and TI allowances are available for the first time in years. But the long-term structural thesis for East Austin industrial remains intact. Tesla's Terafab announcement ($25B semiconductor venture), Samsung's $17B Taylor fab coming online, and Compal Electronics' 578K SF market entry all point to a submarket that is building the industrial ecosystem around advanced manufacturing and logistics that Austin has historically lacked. Developers like Lovett Industrial (Houston) and ALTO Real Estate entering the market for the first time signal continued institutional conviction in the SH 130 corridor's trajectory.
Average
$11.75
/SF NNN
Low
$10.86
/SF NNN
High
$14.71
/SF NNN
Vacancy Rate
15.2%
Net Absorption
4.1M SF
12 months (full year 2025)
East Austin industrial vacancy has risen sharply to multi-decade highs, driven by a historic construction cycle that delivered 9.5M SF in 2025 alone — outpacing absorption by roughly 2:1. The SH 130 corridor, the epicenter of speculative development, carries the heaviest vacancy burden. Newer product (delivered since 2021) accounts for the majority of vacant space, while older, well-located smaller product remains relatively tight. Concessions including free rent and TI allowances are now available for the first time in years, firmly shifting leverage to tenants.
Avg Cap Rate
7.5%
Cap Rate Range
5.5% – 8.3%
| Address | Price | $/SF | Cap Rate | Date | SF | Class |
|---|---|---|---|---|---|---|
| Blue Springs Business Park Bldg 3, Georgetown | $26,000,000 | $154 | — | 2025-10 | 168,784 | A |
| Manor Business Park, Manor TX | $19,000,000 | $140 | — | 2025-07 | 135,900 | B |
| ATX 130 Building 1, SE Austin | $18,548,000 | $154 | — | 2025-06 | 120,440 | A |
| Innovation Business Park Bldg 8, Austin | $28,000,000 | $142 | — | 2025-06 | 196,523 | A |
| Austin Infill Logistics Portfolio (7 buildings) | $70,000,000 | $193 | — | 2025-03 | 361,964 | B |
| Westinghouse35, 1310 Blue Ridge, Georgetown | $39,000,000 | $169 | — | 2025-03 | 230,954 | A |
| Settlers Grove IV, Austin | $22,000,000 | $164 | — | 2025-03 | 134,400 | A |
| Taylorport Rail Park Bldg 2, 201 FM3349, Taylor TX | $31,000,000 | $169 | — | 2025-02 | 183,000 | A |
Under Construction
14.1M SF
Planned
7.0M SF
Deliveries (12mo)
10.0M SF
Austin Hills Commerce Center
Sansone Group + Principal Asset Management
6 buildings on 134 acres off SH 130 near Tesla Gigafactory. Tesla leased 296,960 SF in Building 1.
Fusion 130
Lovett Industrial + Clarion Partners
9 buildings on SH 130, 2 miles north of Tesla Gigafactory. Lovett's first Central Texas project.
ATX 130
Jackson-Shaw
4 buildings on 67 acres at SH 130 / Elroy Road. Ferguson Enterprises preleased 207K SF.
Howard 130
Stream Realty Partners
3 buildings, 32-36 ft clear heights. MEI Industrial Solutions leased 197,980 SF.
ALTO SH 130 Industrial
ALTO Real Estate Funds
2 buildings on 24 acres at Cameron Rd / SH 130, Pflugerville.
CrossPoint Business District Phase 2
Jackson-Shaw
606K SF BTS for Baer Manufacturing (data center products) + 606K SF spec in Georgetown.
Leased 296,960 SF at Austin Hills Commerce Center Building 1. Operates over 11M SF across Austin MSA. Announced $25B Terafab semiconductor venture on Giga Texas North Campus.
2025-2026
Taiwanese ODM entered Austin market with 578,908 SF across two leases — 366K SF at TaylorPort Rail Park and 213K SF at Georgetown Logistics Park.
Q4 2025
Broke ground on Fusion 130, a 1.5M SF industrial park on SH 130 near Tesla. Lovett's first Central Texas project signals institutional confidence.
Late 2025
Owns 8M+ SF across Austin. Pivoting to data center development with 160-acre Power Campus and 600MW Skybox partnership in Hutto. $300M data center expansion.
2025
Purchased 168,784 SF at Blue Springs Business Park in Georgetown — first U.S. manufacturing facility for the Taiwanese electronics maker.
Q4 2025
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