Austin Retail Doing Great: Q&A With Weitzman’s Gabe Sanchez

In this fourth installment of Weitzman’s 2018 retail report release, the following question-and-answer session buttonholes Gabe Sanchez with Weitzman’s Austin office. Sanchez focused on the report’s findings, which showed near-record occupancy but surprisingly low construction.

Q. What is the Austin retail market like today?
A. The market today looks strong. We’re certainly seeing space come back on the market from time to time. However, it’s being backfilled by retailers that have wanted to be in the market for a while, but haven’t had the opportunity.

Q. So, how does the current market seem, compared to a decade ago?
A. The obvious difference is that our occupancy rate has steadily increased over the last decade. Ten years ago, occupancy was at a healthy 92%. Today, it stands at an outstanding 96%. What’s changed is the amount of space that is being delivered. In 2007, 4.2 million square feet delivered, with additions including the first phase of The Domain, and anchors such as J.C. Penney, Walmart, SuperTarget and Lowe’s. Last year, we saw approximately 640,000 square feet of retail added, mostly for junior anchors and space for restaurants, entertainment and other specialty concepts.

Q. How does 2018 look?
A. It’s hard to argue that the outlook for 2018 isn’t positive, considering the Austin area’s extremely low unemployment rate (just under 3%), strong single- and multifamily housing market, and the investment interest pouring in from around the country. All signs point to steady and continued growth for the Austin-area retail market.

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