Austin, Texas, has become a highly sought-after location for industrial businesses looking to lease space in a thriving and dynamic market. With a robust economy, a talented workforce, and a pro-business environment, Austin offers numerous opportunities for companies seeking to establish or expand their presence in the region. However, navigating the industrial leasing landscape can be complex, and choosing the right location is essential to ensure the success of your operation. 

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In this article, we will guide you through the key factors to consider and highlight the top areas for leasing industrial space in the Austin area.


Key Factors to Consider When Leasing Industrial Space

When searching for the ideal industrial space to lease, several key factors must be taken into account to ensure that your business can operate efficiently and grow successfully.

Proximity to Major Transportation Routes

Access to major highways, airports, and rail lines is crucial for businesses that rely on efficient logistics and distribution. Austin offers excellent connectivity, with several key transportation routes, such as Interstate 35, US 183, and State Highway 130. The Austin-Bergstrom International Airport and the Union Pacific rail line also provide valuable links for companies with domestic and international shipping requirements.

Access to Skilled Labor Pool

Austin is renowned for its highly educated and skilled workforce, fueled by the presence of top-tier universities and technical schools, such as The University of Texas at Austin and Austin Community College. This talent pool is particularly valuable for industries that require specialized skills, such as advanced manufacturing, technology, and research and development.

Zoning and Building Regulations

When leasing industrial space, it is essential to ensure that the property is zoned for industrial use and complies with local building regulations. Working with an experienced industrial tenant representation broker can help you navigate these complexities and find a space that meets your specific zoning and building requirements.

Read Next: 7 Steps to Finding the Perfect Industrial Space to Lease 

Facility Infrastructure

The space you lease should have the necessary infrastructure to support your operations, including adequate power, water, ceiling height, loading docks, sewage systems, and any other necessary requirements. It is also essential to consider the building’s age, condition, and any potential maintenance or renovation needs.


Austin’s industrial market includes regions outside of Travis County (including Williamson County, Hays County, etc.) that will offer separate infrastructure solutions in regards to water and power. Certain cities such as Georgetown and Leander have also been known to offer incentives based on employment and capital investments.

Proximity to Suppliers and Customers

Leasing space near your suppliers and customers can help optimize your supply chain, reduce transportation costs, and enhance customer service. Consider the location of your key suppliers and target markets when evaluating potential spaces to lease.

Lease Terms and Costs by Submarket

Lease terms and costs can vary significantly across the Austin area. Typically, submarkets vary in lease rates and concessions. Working with an industrial tenant representation broker can help you negotiate favorable lease terms and ensure that you understand all the costs associated with leasing the space.

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Top Areas for Leasing Industrial Space in Austin

Austin offers several prime locations for leasing industrial space, each with its own unique advantages and notable industrial parks or developments.

Northeast Austin

The Northeast submarket, which includes areas like Pflugerville, offers excellent access to I-35, SH 45, and SH 130. This submarket is well-suited for businesses with distribution and logistics needs.

Read more about Northeast Austin:

East Austin

East Austin has emerged as a rapidly growing submarket for leasing industrial space, with a mix of older properties and new developments. The area offers easy access to SH 130, US 183, and US 290, making it an ideal location for businesses with distribution and logistics needs.

Southeast Austin

The Southeast submarket, which includes areas like Burleson and Montopolis, is a popular choice for leasing industrial space due to its proximity to Downtown Austin, I-35, SH 71, SH-130, and the Austin-Bergstrom International Airport. The area features a diverse mix of industrial properties, ranging from smaller flex spaces to large distribution centers. The presence of Tesla’s Gigafactory in this submarket has sparked significant interest from Tesla suppliers, leading to a surge in demand for industrial space in the surrounding area.

Caldwell County

Located 45 minutes southeast of Austin along SH 130, Caldwell County is an emerging submarket attracting industrial tenants with its affordable lease rates and proximity to major transportation routes.

Read more about Caldwell County:

Hays County

Hays County, which includes cities like Buda and Kyle, offers a strategic location along I-35 between Austin and San Antonio. With a growing population and an increasing inventory of industrial space for lease, Hays County is an appealing option for industrial businesses.

Read more about Hays County:

Williamson County

Williamson County, north of Austin, encompasses cities like Round Rock, Georgetown, Hutto, and Taylor. This submarket has experienced significant growth in industrial leasing. The region attracts numerous manufacturing tenants due to its strategic location near major highways, including I-35, SH 45, and SH 130, as well as its large labor force and business-friendly environment. 

Samsung’s new chip-making factory in Williamson County has led to many of its suppliers moving to the area. This has caused a big increase in demand for industrial space close to Samsung’s facility.

Read more about Williamson County:


Working with an Industrial Tenant Representation Broker

Partnering with an experienced industrial tenant representation broker can provide numerous benefits throughout the leasing process.

Benefits of Partnering with a Broker

An industrial tenant representation broker can offer valuable market insights, help identify suitable properties, and guide you through the complex leasing process.

Download Now: AQUILA’s Latest Austin Industrial Market Report

Navigating the Leasing Process

Your broker will work closely with you to understand your specific requirements and preferences, and then identify properties that best match your needs. They can arrange site visits, provide detailed property analyses, and help you compare the pros and cons of each option.

Negotiating Lease Terms and Incentives

Once you have identified your preferred property, your industrial tenant representation broker will negotiate lease terms and incentives on your behalf. They can help you secure favorable rental rates, tenant improvements, and other concessions, ensuring that you get the best possible deal for your industrial space.

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Choosing the right location to lease industrial space in the Austin area is a critical decision that requires careful consideration of multiple factors. By understanding the key criteria, such as proximity to transportation routes, access to skilled labor, and lease terms and costs, you can narrow down your options and select a space that best supports your business’s growth and success.

Working with a knowledgeable industrial tenant representation broker can streamline the leasing process, provide valuable market insights, and ensure that you secure the most favorable lease terms for your space.

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As Austin continues to attract industrial businesses across various sectors, the demand for high-quality industrial space for lease is expected to remain strong. With a range of established and emerging submarkets, the Austin area offers ample opportunities for tenants looking to capitalize on the region’s growth and success.

Are you searching for the perfect industrial space for your business? Contact one of our experienced industrial tenant representation brokers today to discuss your needs and learn how we can help you find the best location for your space.

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Madison Lewis

As an associate for the industrial team, Maddie works closely with the team to produce market surveys, draft proposals, and tour spaces with clients.

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