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Austin Retail Sees Negative Absorption in Q3
Austin’s retail sector has taken an uncommon turn into being a tenant’s market at the moment, judging by third-quarter results reported by NAI Partners. Net absorption went into the red for a second consecutive quarter—only the second time in nearly a decade—at negative 255,000 square feet.
That negative absorption level compared to negative 37,000 square feet during Q2 and positive 175,000 square feet year-over-year, NAI Partners reported.
Leasing activity, comprising both new leases and renewals, included 368,000 square feet of signed deals, down 50% from a year ago, although up 50% quarter-over-quarter. The overall occupancy rate decreased by 40 basis points quarter-over-quarter, and 60 bps Y-O-Y at 95.1%.
The retail market saw overall average asking rates drop between 0.5% to 0.9% per square foot over the past year to finish Q3 at $21.77 on a triple-net basis. A year ago, average rates were at $21.88 per square foot.
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