Austin Metro NNN Average Asking Retail Rent Is At All-Time High, NAI Reports
In the first two months into 2022, overall vacancy in the Austin retail market has tightened to 3.7%, dropping 100 basis points from this time last year at 4.7%. Availability is at 4.9%, down 130 basis points from February 2021 at 6.2%. The difference between this figure and the vacancy rate reflects expected future move-outs, according to NAI Partners monthly retail report for Austin, TX.
Leasing activity comprised of both new leases and renewals slowed slightly year-over-year at 555,000 square feet, versus 652,000 square feet, while net absorption is at 193,000 square feet, up 12% year-over-year from 173,000 square feet. The top transaction so far in 2022 is the Austin Disaster Relief Network signing a lease for 36,888 square feet for a second Hope Family Thrift Store location in North Austin at 13801 Burnet Road.
Overall positive trends in leasing activity have driven average retail asking rents higher. The Austin metro NNN average asking rent is at an all-time high of $21.92 per sq. ft., up 4.8% from $20.92 this time last year. With one of the strongest economies in the country over the past decade, retail landlords in Austin have significantly benefited.
Erik Hamilton, who has more than 15 years in CRE journalism, is a former staff writer with the Los Angeles Times and the Orange County Business Journal. In addition to The Times and the OCBJ, he was also a reporter and editor for Crittenden Research, The San Bernardino Sun and UPI. Erik also worked six years in CRE public relations with Los Angeles-based Hoyt Organization, where he was a Senior Account Executive. He later joined Lee & Associates where he served as the Director of Corporate Communications. There ,in addition to his work with Lee’s CEO, he managed 57 offices nationwide and provided PR, social media and media training for the offices. A graduate of UC Irvine, with a BA in history, he is an avid record collector where he continues to search for a rare Joy Division single.