Austin Retail Fundamentals Hold Steady in Lockdown
Austin retail fundamentals weren’t shaken by the COVID-19 pandemic despites two months of closures, NAI Partners reported. Occupancy stood at 95.8% as of mid-May, equal to the same time last year.
Year to date, the Austin retail market has recorded 848,000 square feet of leasing activity—comprised of both new leases and renewals—on par from one year ago. In addition, the net amount of square feet absorbed (move-ins minus move-outs) stands at 555,000 square feet.
New supply has delivered 564,000 square feet to the market this year, of which 79% is occupied. The 1.5 million square feet now under construction is 49% occupied, according to NAI Partners.
The average asking rate for renting retail space in Austin was $21.74 per square foot on a triple-net basis as of mid-May. That was down slightly compared to this time in 2019 at $22.17 per square foot.
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