Retail Supply Keeps Pace with Demand

Austin’s retail news for September 2018 could be summed up in five words: supply keeping pace with demand. According to metrics from NAI Partners, year-to-date occupancy stood at 96.1%, net absorption was 1.2 million square feet, and 1.3 million square feet have been delivered to the market so far this year.

Also in September, leasing activity accounted for 125,366 square feet, while the average asking rent was $22 per square foot, a slight decrease from the $22.05 reported in August 2018.

The good news, however, comes at a cost, as Real Capital Analytics reported that retail investment sales was down 47.3% year over year, totaling $391.2 million. The reason is that buyers are having a difficult time finding assets at a value that makes sense, the NAI Partners’ analysts noted.

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