Austin Commercial Office Space for Rent

Q3 2026

Q3 2026 Austin Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Austin office posted 253,000 SF of positive absorption in Q3 2026 even as the 703,000 SF Waterline tower delivered in the CBD, and office tenant demand reached 5.1 million SF, up 45% year over year. Industrial leasing hit 9.77 million SF year to date, more than in all of 2024 or 2025. On TenantBase, office demand tripled to 46.8% of Austin tenant searches, up from 15.4% in Q2, while retail remained the largest category at 51.4%.

Sector Snapshot

  • Office: Demand building. Vacancy was 23.6%, with the construction pipeline at its lowest level in more than 10 years.
  • Industrial: Leasing surge. Q3 leasing reached 3.53 million SF, up 123.8% year over year, while vacancy held at 19.3%.
  • Retail: Leading demand. Retail was 51.4% of TenantBase searches, with Georgetown drawing investor activity.
  • Multifamily: Rents adjusting. Average asking rent was $1,508, down 3.7% year over year.

Austin Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across the Austin region are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Retail/Storefront: 51.4%
  • Office: 46.8%
  • Warehouse/Industrial: 1.8%

Three-Quarter Trend

  • Retail/Storefront: 50.3% in Q1, 48.8% in Q2, 51.4% in Q3
  • Office: 17.0% in Q1, 15.4% in Q2, 46.8% in Q3
  • Warehouse/Industrial: 33.3% in Q1, 36.2% in Q2, 1.8% in Q3

Key Takeaways

  • Office demand tripled, from 15.4% of searches in Q2 to 46.8% in Q3.
  • Office tenants want flexibility. 43.1% of office searches sought terms under one year, up from 39.0% in Q2.
  • Retail splits short and long. 40.7% of retail searches sought terms under one year, and another 40.7% sought 3 years or longer.
  • South Austin, Downtown, and North Austin were the most searched single locations.

Office Market

Key Metrics (Q3 2026, CBRE)

  • Vacancy: 23.6%, up 40 basis points quarter over quarter, with Class A down 170 basis points year over year to 25.4%
  • Net absorption: 253,000 SF in Q3 and 577,000 SF year to date
  • Direct asking rent: $50.65/SF, up 3.6% year over year, with the CBD at $68.40/SF
  • Construction: 177,000 SF underway, all in the CBD, after the 703,000 SF Waterline tower delivered
  • Submarkets: Southwest at 12.3% vacancy, Round Rock at 14.6%, Northwest at 17.0%, CBD at 30.1%, and East at 40.1%

TenantBase Office Activity

Demand share: 46.8% of Austin tenant searches, up from 15.4% in Q2 and 17.0% in Q1.

Lease terms:

  • Less than 1 year: 43.1%
  • 3 to 5 years: 27.5%
  • 2 to 3 years: 21.6%
  • 5+ years: 7.8%

Space requirements by term:

  • Less than 1 year: 833 to 1,833 SF
  • 2 to 3 years: 750 to 1,750 SF
  • 3 to 5 years: 2,577 to 5,346 SF
  • 5+ years: 2,000 to 4,167 SF

TenantBase data vs. the market: Austin office tenants on TenantBase are splitting between small, short-term spaces under 2,000 SF and 3 to 5 year commitments averaging 2,577 to 5,346 SF. With CBD vacancy at 30.1% and new Class A space still leasing up, tenants have leverage on concessions downtown, while Southwest and Round Rock are tighter.

Industrial & Warehouse Market

Key Metrics (Q3 2026, CBRE)

  • Vacancy: 19.3%, flat quarter over quarter
  • Net absorption: 1.22 million SF in Q3, up 73.3% year over year, and 2.92 million SF year to date
  • Asking rent: $11.57/SF NNN, down 2.1% year over year
  • Construction: 6.67 million SF underway, with 918,000 SF delivered in Q3
  • Submarkets: Cedar Park at 10.9% vacancy and Northeast at 13.1%, while Far North absorbed 380,000 SF

TenantBase Warehouse Activity

Demand share: 1.8% of Austin tenant searches, down from 36.2% in Q2 and 33.3% in Q1.

TenantBase data vs. the market: Warehouse searches on TenantBase dropped sharply in Q3, while large users drove 3.53 million SF of leasing across the market. With vacancy at 19.3% and rents down 2.1%, industrial tenants of all sizes have negotiating room.

Retail Market

Market Conditions

  • Investment: retail property trading is concentrating in Georgetown, encouraging new development (Marcus & Millichap)
  • Downtown: CBD retail vacancy is under 3% (Marcus & Millichap)
  • Growth areas: Hays County and Pflugerville are emerging retail areas (Marcus & Millichap)

TenantBase Retail Activity

Demand share: 51.4% of Austin tenant searches, compared with 48.8% in Q2 and 50.3% in Q1.

Lease terms:

  • Less than 1 year: 40.7%
  • 3 to 5 years: 25.9%
  • 2 to 3 years: 16.7%
  • 5+ years: 14.8%
  • 1 to 2 years: 1.9%

Space requirements by term:

  • Less than 1 year: 917 to 1,917 SF
  • 3 to 5 years: 1,000 to 2,500 SF
  • 5+ years: 2,500 to 5,000 SF

TenantBase data vs. the market: Short-term retail searches rose to 40.7% of retail demand on TenantBase, up from 7.3% in Q2, pointing to pop-up and test-concept interest. With downtown retail vacancy under 3%, tenants seeking central storefronts should plan for limited options.

Multifamily Market

Austin average asking rent was $1,508 in Yardi Matrix's July 2026 report, down 3.7% year over year, with stabilized occupancy at 91.8%. About 21,224 units were under construction, and employment grew 1.3% year over year.

Q4 2026 Outlook

  • Office: Expect vacancy to stabilize as the construction pipeline shrinks and tenant demand converts to leases.
  • Industrial: Expect strong leasing to continue, with rents under pressure from new deliveries.
  • Retail: Expect demand for short-term and small-format space to stay elevated.
  • Multifamily: Expect concessions to persist as new supply leases up.

Frequently Asked Questions

What type of commercial space are Austin tenants searching for in 2026?

In Q3 2026, 51.4% of Austin tenant searches on TenantBase were for retail space, 46.8% for office space, and 1.8% for warehouse space.

What is the office vacancy rate in Austin?

Austin office vacancy was 23.6% in Q3 2026, with the CBD at 30.1% and Southwest at 12.3%, according to CBRE.

What is the industrial vacancy rate in Austin?

Austin industrial vacancy was 19.3% in Q3 2026, with asking rents of $11.57/SF NNN, according to CBRE.

How can I find commercial space in Austin at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across the Austin region at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Austin, July 1 to September 30, 2026
  2. TenantBase, Austin Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Austin Commercial Real Estate Market Report, Q1 2026
  4. CBRE, Austin Office Figures, Q3 2026
  5. CBRE, Austin Industrial Figures, Q3 2026
  6. Marcus & Millichap, Austin Retail Market Report, 3Q 2026
  7. Marcus & Millichap, Austin Retail Investment Forecast, 2026
  8. Yardi Matrix, Austin Multifamily Market Report, July 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.