Report: Austin Retail Occupancy at Highest Rate Since 2016

A recent report from NAI Partners found that Austin’s retail market remained positive through 2021. Vacancies in the market have tightened to 3.7%, a level not seen since the fourth quarter of 2016.

Leasing during the quarter was also healthy, with Austin recording 445,000 square feet of activity, following Q3’s 658,000 square feet and representing an increase from 380,000 square feet in Q4 2020. Currently, there is 941,000 square feet under construction, 1 million square feet delivered in 2021 and another 1.6 million square feet proposed through 2023, reflecting the continued demand for retail space in the Austin metro, according to NAI.

One of the drivers for the retail market’s growth is certainly the explosive growth in the Austin-Round Rock MSA’s housing market, which set numerous records in 2021. According to the Austin Board of Realtors, more homes were sold in the Austin-Round Rock MSA during 2021 than ever before. Residential home sales rose 2.5% year-over-year to 41,316 homes sold. Additionally, the median price for a home in the MSA set a record in 2021, rising 30.8% from 2020 to $450,000.  Looking ahead to 2022, the Austin Board of Realtors reports that a lack of inventory and supply chain disruptions could further impact the MSA’s housing market.