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Pflugerville and the SH 130 corridor represent the most dynamic — and most debated — industrial submarket in the Austin metro. The bull case is extraordinary: $80M+ in city utility infrastructure bonds, a $156M EPA water loan, SH 130 truck traffic up 84% since 2019, Tesla's expanding Gigafactory 10 miles south, Samsung's $17B Taylor fab 25 miles north, and the strongest quarterly absorption of any Austin submarket in Q4 2025 (+553K SF). All space built between 2020-2023 is now leased. The bear case is equally real. The NE submarket has the 'biggest glut of supply' in the metro per Cushman & Wakefield, with mid-size rear-load buildings in the 100K-300K SF range sitting vacant. Metro-wide vacancy is at a 20-year high. Rents are declining for the first time since 2010. And the development pipeline keeps growing — Lovett Industrial's 1.5M SF Fusion 130, ALTO's 252K SF project, Live Oak's 358K SF Heatherwilde 45 are all breaking ground. The nuance matters more than the headline. Small-bay flex product (like Benchmark's 84K SF) faces virtually no oversupply. Build-to-suit demand from semiconductor suppliers (Pegatron, Compal, Applied Materials) is consuming large-format space. The oversupply is concentrated in speculative mid-size warehouse product that was built for a market that hasn't fully materialized yet. As Stream Realty's Sam Owen said: 'We need more space; we just don't need it all at this one point in time.' For investors and developers with a 24-36 month horizon, Pflugerville's infrastructure investments and proximity to Tesla/Samsung make it the highest-upside industrial play in the Austin metro.
Average rent: $12.2/SF. Range: $8.34 - $19.39/SF. YoY growth: -2.1%.
Vacancy rate: 16%. Trend: rising. Pflugerville and the NE Austin SH 130 corridor are the epicenter of Austin's industrial oversupply — but also posted the strongest absorption of any submarket in Q4 2025 (+553K SF). The paradox captures the market perfectly: demand is real but supply has overwhelmed it. Mid-size rear-load buildings in the 100K-300K SF range sit vacant while smaller flex product and build-to-suit facilities are leasing. As one industry panelist put it: 'We need more space; we just don't need it all at this one point in time.' The NE submarket rents at $12.20/SF NNN — roughly 40% below Central/South Austin's $19-20/SF — reflecting its value positioning as a logistics and distribution hub rather than a flex/R&D corridor. Landlords are offering rate flexibility and concessions for the first time in years.Net absorption: 552,991 SF.
Average cap rate: 7.2%. Range: 5.5% - 8.3%.
Under construction: 12,500,000 SF. Planned: 7,000,000 SF. Deliveries next 12 months: 8,000,000 SF.
Population: 67,483. Growth rate: 0.5%. Median household income: $112,656. Job growth: 1.4%.
Austin, TX
Avg Rent
$12.20
/SF NNN-2.1% YoY
Vacancy
16.0%
Avg Cap Rate
7.2%
5.5–8.3%Net Absorption
553K SF
Pflugerville and the SH 130 corridor represent the most dynamic — and most debated — industrial submarket in the Austin metro. The bull case is extraordinary: $80M+ in city utility infrastructure bonds, a $156M EPA water loan, SH 130 truck traffic up 84% since 2019, Tesla's expanding Gigafactory 10 miles south, Samsung's $17B Taylor fab 25 miles north, and the strongest quarterly absorption of any Austin submarket in Q4 2025 (+553K SF). All space built between 2020-2023 is now leased.
The bear case is equally real. The NE submarket has the 'biggest glut of supply' in the metro per Cushman & Wakefield, with mid-size rear-load buildings in the 100K-300K SF range sitting vacant. Metro-wide vacancy is at a 20-year high. Rents are declining for the first time since 2010. And the development pipeline keeps growing — Lovett Industrial's 1.5M SF Fusion 130, ALTO's 252K SF project, Live Oak's 358K SF Heatherwilde 45 are all breaking ground.
The nuance matters more than the headline. Small-bay flex product (like Benchmark's 84K SF) faces virtually no oversupply. Build-to-suit demand from semiconductor suppliers (Pegatron, Compal, Applied Materials) is consuming large-format space. The oversupply is concentrated in speculative mid-size warehouse product that was built for a market that hasn't fully materialized yet. As Stream Realty's Sam Owen said: 'We need more space; we just don't need it all at this one point in time.' For investors and developers with a 24-36 month horizon, Pflugerville's infrastructure investments and proximity to Tesla/Samsung make it the highest-upside industrial play in the Austin metro.
Average
$12.20
/SF NNN
Low
$8.34
/SF NNN
High
$19.39
/SF NNN
Vacancy Rate
16.0%
Net Absorption
553K SF
Q4 2025 (strongest submarket)
Pflugerville and the NE Austin SH 130 corridor are the epicenter of Austin's industrial oversupply — but also posted the strongest absorption of any submarket in Q4 2025 (+553K SF). The paradox captures the market perfectly: demand is real but supply has overwhelmed it. Mid-size rear-load buildings in the 100K-300K SF range sit vacant while smaller flex product and build-to-suit facilities are leasing. As one industry panelist put it: 'We need more space; we just don't need it all at this one point in time.' The NE submarket rents at $12.20/SF NNN — roughly 40% below Central/South Austin's $19-20/SF — reflecting its value positioning as a logistics and distribution hub rather than a flex/R&D corridor. Landlords are offering rate flexibility and concessions for the first time in years.
Avg Cap Rate
7.2%
Cap Rate Range
5.5% – 8.3%
| Address | Price | $/SF | Cap Rate | Date | SF | Class |
|---|---|---|---|---|---|---|
| ATX 130 Bldg 2, 6807 Elroy Rd area, SE Austin | $15,300,000 | $190 | — | 2025-12 | 80,365 | A |
| Blue Springs Business Park Bldg 3, Georgetown | $26,000,000 | $154 | — | 2025-10 | 168,784 | A |
| Westinghouse35, 1310 Blue Ridge, Georgetown | $39,000,000 | $169 | — | 2025-03 | 230,954 | A |
| TaylorPort Rail Park Bldg 2, Taylor TX | $31,000,000 | $169 | — | 2025-02 | 183,000 | A |
Under Construction
12.5M SF
Planned
7.0M SF
Deliveries (12mo)
8.0M SF
ALTO SH 130 Industrial
ALTO Real Estate Funds
24 acres at Cameron Rd / SH 130. 2 buildings, 126K SF each. 32-ft clear heights. ALTO's 6th ground-up project.
Waypoint at 130
United Properties
4-5 Class A buildings at Howard Lane / Gregg Manor Rd & SH 130. Rear-load and cross-dock.
Benchmark Business Parks
The Town Lake Company
2 tilt-wall buildings, 24 units at 1433 Chris Lane. Small-bay flex targeting trades and service companies.
130 Crossing Phase III
Ironwood Realty Partners
3 buildings (of 8 total, 1M+ SF campus). Applied Materials leases ~330K SF. At SH 130 & Pecan Street.
Heatherwilde 45
Live Oak
27 acres at SH 45 / Heatherwilde Blvd. 32-ft clear heights, 60-ft speed bays.
Fusion 130
Lovett Industrial + Clarion Partners
180 acres, 9 buildings on SH 130 near Tesla. Lovett's first Central Texas project.
252K SF ground-up at Cameron Rd / SH 130. 6th project for the fund. New entrant to Austin market, signaling institutional confidence in the SH 130 corridor.
Q3 2025
Semiconductor equipment maker occupies ~330K SF at 130 Crossing Industrial Park in Pflugerville. Major anchor tenant for the SH 130 corridor.
2025
City approved $80M+ in utility bonds: $53M for secondary Colorado River raw water line (completion July 2026), $27M for water treatment. $250M Greenfield Wastewater Treatment Plant targeting Nov 2026. $156M EPA loan for drinking water.
December 2025
PCDC acquired 53-acre mixed-use site overlooking Lake Pflugerville (Feb 2025). JLL selected as owner's representative. Developer RFQ underway.
February 2025
Taiwanese electronics maker purchased 168K SF at Blue Springs Business Park, Georgetown — first U.S. manufacturing facility. Part of Austin's growing semiconductor supply chain.
Q4 2025
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