Question 1

What is the office vacancy rate in Austin?

Accepted Answer

Austin office vacancy is 15.7% as of 2026 Q2, down about 0.7 points year over year — the first annual decline in over three years. 4 & 5 Star vacancy is higher at 21.6%.

Question 2

How much are office rents in Austin?

Accepted Answer

The overall office asking rent is $42.76/SF/yr. 4 & 5 Star space averages $52.31/SF, 3 Star $38.02/SF, and 1 & 2 Star $33.54/SF.

Question 3

What are office cap rates in Austin?

Accepted Answer

Austin office sale comps over the trailing 12 months (CoStar, 2026 Q2) show about a 6.5% average cap rate, ranging from 5.0% to 9.6% with a 6.3% median, at roughly $193/SF. Pricing is about 16% below the 2021 peak. Forward stabilized estimates for lease-up or distressed assets run higher, around 9% to 12%.

Question 4

What are multifamily cap rates in Austin?

Accepted Answer

Austin multifamily sale comps average about a 5.6% cap rate (4.0% to 7.0% range) at roughly $178,672 per unit across 86 trailing-12-month trades and $546.4M of volume. 4 & 5 Star assets trade around low-5% caps (~$250K/unit) down to about $80K/unit for value-add.

Question 5

What are retail and NNN cap rates in Austin?

Accepted Answer

Austin retail and NNN sale comps cluster around 6.0% to 7.6% cap rates, with single-tenant freestanding properties under 10,000 SF trading tightest. Texas pricing runs below the national average given strong growth and no state income tax.

Question 6

Is the Austin industrial market oversupplied?

Accepted Answer

Yes — industrial vacancy has climbed to 14.2% as roughly 8.5M SF delivered over the past year was only 17% preleased. Logistics vacancy leads at 17.6%. A smaller delivery wave in 2027 should help it rebalance.

Question 7

How is the Austin retail market doing?

Accepted Answer

Retail is the tightest segment at 3.3% vacancy with 2.0% rent growth. Austin has led the U.S. in retail deliveries as a share of inventory for four straight years, yet space stays in short supply.

Question 8

Are apartment rents rising or falling in Austin?

Accepted Answer

Falling — multifamily asking rents are down 3.2% and effective rents down 3.1% over 12 months. But vacancy (13.3%) is improving as deliveries slow sharply from the 2024 record of 32,500 units.

Question 9

How are Austin hotels performing?

Accepted Answer

Softening — 12-month RevPAR is $103, down 6.9%, with 63.3% occupancy and a $162 ADR. The dip is tied to convention-center disruption and new supply. The October 2026 F1 weekend plus UT football is a bright spot.

Question 10

Which Austin commercial real estate segment is strongest right now?

Accepted Answer

Retail — 3.3% vacancy and positive 2.0% rent growth. Office, industrial, and multifamily are all working through elevated vacancy, while hospitality demand is temporarily displaced.

Austin commercial real estate market dashboard

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