Texas + Austin + Retail | March 1, 2022

Austin’s Retail Leasing Posting Its Best Start Since 2013, NAI Partners Report

The new year started with overall vacancy in the Austin retail market tightening to 3.8%, dropping 80 basis points from this time last year. Availability is at 5.1%, down 110 basis points from January 2021, according to the NAI Partner’s 2022 January retail report.

The difference between this figure and the vacancy rate reflects expected future move-outs. January 2022 marks the highest amount of leasing activity in January since 2013 for the Austin retail market. About 310,000 square feet of of leasing activity comprised both new leases and renewals while net absorption (move-ins minus move-outs) is at 9,800 square feet, down significantly year-over-year from 264,000 square feet.

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 $22.00 per sq. ft., up 5.2% 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.

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About Erik Hamilton

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.

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