Posted on January 21, 2026
AUS takes off: How Airport Expansion Is Reshaping Austin’s Commercial Real Estate Market
The airport is undertaking a $5 billion expansion to nearly double its gate count from 34 to 66, including two new concourses and a modernized Barbara Jordan Terminal (Concourse A). The expansion is backed by long-term airline leases and federal funding commitments, with full completion expected in the early 2030’s. Together, these investments reinforce Austin’s competitive position as a growing national hub.
Key Components of the Expansion:
The expansion will include two major concourses that significantly increase passenger capacity and modernize operations. The total of three concourses includes concourses A, B, and M. Concourse A, otherwise known as the Barbara Jordan Terminal, will undergo a redevelopment for a modernized concourse with upgraded amenities, gate seating, and passenger flow. Delta Airlines serves as the Concourse A anchor tenant, followed by American Airlines, Alaska Airlines, and common-use accessibility. Concourse B, a new concourse, will include 26 gates and enhanced ramp operations to support expected passenger growth. It will be anchored by Southwest Airlines, with service from United Airlines and additional gates available for use by other carriers. Concourse M adds operational flexibility for diverted or off-schedule flights and provides space for new airline entrants. It will feature passenger amenities and a dedicated shuttle connecting it to the Barbara Jordan Terminal (Concourse A). Collectively, the expansion positions AUS for long-term growth, improves the traveler experience, and strengthens commercial real estate prospects.
Timing and Phasing:
- Phased Construction: The project is delivered in phases, allowing the airport to maintain normal operations while adding new concourses and modernized facilities.
- Near-Term Projects (by 2026): These near-term improvements, including the West Gate Expansion, Atrium Infill, West Infill, and Outbound Baggage Handling System, will expand passenger areas, optimize security lanes, and modernize baggage handling.
- Concourses M and B: Concourse M adds temporary gates for construction flexibility and should be completed near 2027; Concourse B and its connecting tunnel will modernize passenger flow and amenities, pushing a longer finish date near the early 2030s.
- Arrivals and Departures Hall: A new hall will expand check-in, security, concessions, and overall passenger experience, with full completion estimated in the early 2030s.
Impact on Commercial Real Estate Valuations:
The AUS expansion makes Austin more accessible for businesses, travelers, and workers, which can boost demand for office, industrial, hospitality, and mixed-use properties. Areas near the airport, especially East and Southeast Austin, may see rising land values and more interest from developers. Improved air service also benefits downtown offices and mixed-use properties by making business travel and corporate relocations easier.
Overall, these improvements help support stronger rents, more stable property income, and greater confidence for investors and lenders, while making it easier to sell or finance properties in the area.
Economic Ripple Effects:
This expansion will increase passenger traffic, boosting demand for office space, hotels, and industrial/logistics facilities in East Austin and Surrounding areas. Retail and service businesses will also benefit from higher visitor volumes. The project supports job creation during construction and long-term operations, strengthening the local economy. Overall, these improvements can help reinforce property values, attract investment, and support steady growth across Austin’s commercial real estate market.
Why It Matters:
Austin-Bergstrom International Airport’s expansion will improve Austin’s connectivity, attracting new businesses, supporting corporate travel, and boosting demand for office, industrial, hospitality, and mixed-use properties. Areas near the airport and East Austin are likely to see rising land values, while downtown and central districts benefit from easier access for business and conferences. The project also creates jobs during construction and long-term operations, strengthening the local economy and supporting more stable property income and investor confidence.
Major projects like the AUS expansion influence property demand, leasing, and redevelopment. LPA provides research, valuation guidance, and market insights needed to navigate Austin’s evolving commercial real estate market—so you’re not just reacting to change, but positioned to capitalize on it.
Whether you’re planning, repositioning, or simply need clarity on value, our team is ready to help you make informed, confident decisions.
