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Year-to-date Austin Retail demand outpacing supply for first time since 2016.
OCCUPANCY AT 95.7%
Occupancy is at 95.7%, up 20 basis points from this time last year. Of the 43 properties consisting of 640,000 sq. ft. currently under construction, the availability rate stands at 43.2%. Year-to-date through July, the Austin retail market has recorded 1.3 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—on par from one year ago at 1.4 million sq. ft. The net amount of square feet absorbed (move-ins minus move-outs) stands at 858,000 sq. ft. New supply has delivered 592,000 sq. ft. to the market this year, with a current occupancy rate of 66.1%. The average asking rate of renting retail space in Austin is at $21.33 per sq. ft. on a triple net basis, down compared to this time in 2020 at $21.60 per sq. ft.
BACKYARD IN BEE CAVE
After many false starts and pending infrastructure permit approval, developers of the Backyard project in Bee Cave are getting closer to starting construction. The preliminary site plan includes an amphitheater venue, a 73,000-sq.-ft. retail complex, office space, a hotel, and two parking garages. Bee Cave is located in Travis County about 15 miles west of downtown Austin. The project is expected to open in early 2024.
RETAIL AND ROOFTOPS
The Austin Board of REALTORS reported that a record-setting number of June transactions contributed to a 16.5% increase in home sales during the first half of 2021. A record of 4,369 Austin homes was sold in the month of June, an 8.6% increase year over year. Home prices continue to skyrocket, as the median price increased 43% to $482,364—an all-time record. Sales dollar volume jumped 55.7% to $2,621,271,158, as pending sales slightly decreased 1.8% to 4,419. Housing inventory declined 1.1 months to 0.6 months of inventory.
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