The Austin Commercial Real Estate Market

Shanti Ryle

July 14, 2025

Downtown Austin as seen over the Colorado River

There’s no slowing down in Austin - as one of the fastest-growing economies in the U.S., the Texas capital continues to attract businesses, talent, and investors in droves, especially from the tech world. What started as a vibrant college town has evolved into a thriving innovation hub, earning its stripes - and the nickname “Silicon Hills” - as a magnet for startups and global giants alike.

With economic momentum showing no signs of fatigue, commercial real estate in Austin has become one of the most dynamic markets in the country. Tenants, buyers, and developers are all competing for space and opportunity across the metro, leveraging Crexi’s CRE marketplace to connect to hundreds of listings throughout the region. Supported by power tools and data, interested parties can simplify analysis, streamline deal flow, and speed up closings.

From Round Rock to Buda, Georgetown to Lakeway, brokers rely on Crexi to market properties, manage leads, and close with confidence. As of today, we’ve helped facilitate more than $1 trillion in commercial transactions, covering over $7 trillion in property value and growing.

Folks paddleboarding in the river next to Austin, Texas

The State of Commercial Real Estate in Austin

Nestled in the heart of Central Texas, Austin blends big-city ambition with creative energy, and the results speak for themselves. The metro area, spanning six counties, continues to see rapid population and job growth, fueled by an economic engine that runs on tech, healthcare, education, and manufacturing.

What sets Austin apart is its ability to balance innovation with livability. Global tech firms share the skyline with live music venues and award-winning food trucks, while mixed-use developments and adaptive reuse projects are transforming neighborhoods while preserving the city’s quirky charm.

For commercial real estate investors, that blend of business and culture makes Austin a compelling place to put down capital. With a steady influx of people, ideas, and opportunities, developers and tenants alike are betting big on what’s next.

Austin Regional Breakdown

What started as a magnet for talent and tech has evolved into a regional success story, with new residents, businesses, and developments transforming the Austin metro area from every angle.

Spanning six counties, the metro’s young energy, strong earning power, and broad regional reach make it a standout market for commercial real estate. With a mix of urban vibrancy and suburban momentum, the greater Austin area continues to attract those looking for opportunity and long-term value.

Austin is home to nearly 980,000 in the city and close to 2.5 million in the metropolitan area.
The median age is 34.9, which is slightly younger than the figures in Texas and the US.
The population of Austin has grown by more than 23% since 2010, a rate faster than that of the state of Texas, according to the United States Census Bureau.
The six-county metro area comprises Burnett, Williamson, Travis, Hays, Bastrop, and Caldwell counties.
Per capita income is $64,182, about 1.5 times the overall amount for Texas, based on data on CensusReporter.org.
The median household income in the Austin metro area is $98,508, a figure about 25% higher than in the US.

The city of Austin as seen from picnic attendees in Zilker Park

Austin Job Market

Austin’s job market continues to set the pace, fueled by a vibrant mix of industries and a business-friendly environment that keeps companies growing - and hiring. From clean tech to semiconductors, finance to space tech, the city’s economic engine is diverse, resilient, and always evolving.

A highly educated talent pool and steady influx of skilled professionals make Austin a magnet for both major employers and fast-scaling startups. Add in strong infrastructure and access to top-tier universities, and it’s easy to see why Austin remains one of the most competitive labor markets in the country.

Austin-Round Rock MSA gross domestic product is over $248 billion, growing by more than 44% since 2020, according to the St. Louis Federal Reserve (FRED).
The unemployment rate in Austin is 3.1%.
Austin's key industries include advanced manufacturing, automotive, clean technology, financial services, data management, life sciences, and space technology.
Some of Austin's major employers are Amazon Fulfillment Centers, Apple, Austin Independent School District, Dell Technologies, H-E-B, Samsung Austin Semiconductor, and the State of Texas.
Austin is ranked as the 11th best place in the U.S. to find a job by WalletHub, based on factors such as job opportunities, employment growth, and monthly average starting salary.
Several major employers in the Austin metro, including T1 Energy, NinjaOne, and TransPak, have completed or announced significant expansions in 2025 - adding hundreds of new jobs each quarter.
Nearly 62% of Austin residents hold a bachelor's degree or higher, a rate almost double that of Texas overall.
The Austin area is home to major institutions of higher education, including The University of Texas at Austin, Texas State University in nearby San Marcos, and Austin Community College.
The metro area transportation network includes major interstates I-35 and US Highway 183, Austin-Bergstrom International Airport (AUS), and Capital Metro for public transit.

The state capitol building in Austin Texas

Austin Industrial Market

Austin’s industrial sector is moving through a rapid growth cycle, with new developments continuing to hit the market at a strong pace. While vacancy rates have ticked up due to the volume of new deliveries, demand remains active, particularly in key submarkets tied to manufacturing and logistics. Leasing activity has slowed slightly from peak levels, but overall absorption stays in positive territory.

Market overview (Cushman & Wakefield Q1 2025)

Inventory: 95,757966 SF
Vacancy rate: 18.2%
Absorption: 1,342,895 SF (YTD)
Key leases by tenant: Siete Family Foods (219,019 SF), Vulcan Packaging (154,786 SF), Three Way Logistics (130,000 SF)
Deliveries: 2,101,167 SF (YTD)
Under construction: 7,258,534 SF
Largest submarkets: Southeast, Hays County, North, Far Northeast

Crexi Insights

These are the most recent Austin industrial lease and sales trends from Crexi Insights (as of June 2025):

For Lease (active)

Asking rate/SqFt (median): $17 per year
Median SqFt/listing: 7,693
Days on market: 188
Total listings on Crexi: 302

For Sale (active)

Median asking price: $1.8 million
Price/SqFt: $336
Asking cap rate: 0%
Days on market: 170
Total listings on Crexi: 43

Sales Comps (past 12 months)

Median sold price: $2.3 million
Sold price/SqFt: $313
Total sales volume: $1.2 billion
Median SqFt sold/transaction: 12,100
Total SqFt sold: 1.5 million

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Office buildings stretch into the sky in downtown Austin

Austin Office Market

After a few turbulent years, Austin’s office sector is beginning to find its footing. While vacancy rates remain elevated, leasing activity is showing signs of life, driven by strategic relocations and a flight to quality. Tenants continue to fine-tune their space needs, often opting for well-located Class A or upgraded B properties with flexible terms. Though certain challenges still exist, the market’s adaptability points to a more balanced phase ahead.

Market overview (Cushman & Wakefield Q1 2025)

Inventory: 66,499,941 SF
Vacancy rate: 29.2%
Net absorption: -110,455 SF (YTD)
Under construction: 1,686,843 SF
Key leases by tenant: BigCommerce (65,000 SF), NinjaOne (60,000 SF), Codeium (21,309 SF)
Largest submarkets: Far Northwest, CBD, Southwest

Crexi Insights

Detailed information on the most recent Austin office market sales and leasing trends is provided by Crexi Insights, as of June 2025.

For Lease (active)

Asking rate/SqFt (median): $28 per year
Median SqFt/listing: 3,213 SF
Days on market: 290
Total listings on Crexi: 1,208 spaces

For Sale (active)

Median asking price: $1.77 million
Price/SqFt: $495
Asking cap rate: 6.0%
Days on market: 174
Total listings on Crexi: 95

Sales Comps (past 12 months)

Median sold price: $1.7 million
Sold price/SqFt: $377
Total sales volume: $835.8 million
Sold cap rate: 7.4%
Median SqFt sold/transaction: 4,004 SF
Days on market (median): 372

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A mural that says "Austin, Howdy!" in downtown Austin

Austin Retail Market

Austin’s retail market is navigating a period of steady recalibration. While absorption has tempered from previous highs, low vacancy and a growing construction pipeline suggest there’s still strong demand beneath the surface. Retailers are taking a more measured approach, but well-located space remains competitive, especially in fast-growing submarkets. As developers respond with new projects, the market is setting the stage for its next phase of growth.

Market overview (Partners Real Estate Q1 2025)

Inventory: 105,126,000 SF
Vacancy rate: 3.3%
Net absorption: 109,097 SF (YTD)
Deliveries: 360,899 SF (YTD)
Under construction: 2,499,765 SF
Largest submarkets: South, Hays County, Cedar Park, Northwest

Crexi Insights

Retail lease and sales trends from Crexi Insights (as of June 2025):

For Lease (active)

Asking rate/SqFt (median): $28 per year
Median SqFt/listing: 2,731SF
Days on market: 182
Total listings on Crexi: 561

For Sale (active)

Median asking price: $2.7 million
Price/SqFt: $478
Asking cap rate: 5.9%
Days on market: 149
Total listings on Crexi: 104

Sales Comps (past 12 months)

Median sold price: $2 million
Sold price/SqFt: $455
Total sales volume: $310.5 million
Sold cap rate: 4.9%
Median SqFt sold/transaction: 3,143 SF
Days on market (median): 360

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Downtown Austin and South Congress at sunset

Austin Multifamily Market

Austin’s multifamily market is working toward stability after a period of rapid growth and heavy development. While new supply has outpaced demand in recent quarters, absorption is starting to catch up, hinting at a more balanced market ahead. Rent trends continue to adjust as landlords compete for tenants, especially in older or Class C properties. Still, strong population growth and a steady influx of young professionals keep long-term fundamentals firmly in play.