Per Bisnow Austin,
Rising retail rents are a sign of the increasing urbanization around Central Austin, NAI Partners Austin’s David Dawkins said. Areas like South Lamar and Burnet Road that once served lower middle to middle income residents are now flush with the younger, and wealthier, millennials that are renting in Austin’s new upscale apartment projects.
“Those residents need goods and services, and as such, we’ve seen increased rents from ground-floor retail in the multifamily projects and substantial repurposing of existing retail spaces amid increased demand in those areas,” Dawkins said. “At the end of the day, it’s difficult for an auto body shop that leased space in these areas to compete with a retailer that can come in and pay substantially more in rent.”