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Austin Retail Activity Slows, But Still Strong
Despite the uncertain economic outlook, Austin retailers still have not hit the proverbial wall. Vacancy rates are down, rents are up and while the level of growth has slowed, people are still moving into Austin.
The vacancy rate has actually dropped, to 3.4%, from 4.0%, in the last eight months. Leasing activity comprised of new leases and renewals decreased year-over-year at 1.5 million sq. ft. versus 1.8 million sq. ft., while net absorption (move-ins minus move-outs) is at 765,000 sq. ft., down 32% year-over-year from 1.1 million sq. ft.
The Austin metro NNN average asking rent is at an all-time high of $23.23 per sq. ft., up 10% from $21.19 last year.
According to the Austin Board of Realtors, the Austin-Round Rock MSA housing market continued to trend towards more normal and sustainable levels in July. It’s the first-time home price growth has been in the single digits since June 2020.
- ◦Economy
