Occupancy is at 95.8%, unchanged from this time last year. Of the 1.5 million sq. ft. currently under construction, the availability rate stands at 52.3%
Market fundamentals. Occupancy is at 95.8%, unchanged from this time last year. Of the 1.5 million sq. ft. currently under construction, the availability rate stands at 52.3%. The Austin retail market has recorded 971,000 sq. ft. of leasing activity—which is comprised of both new leases and renewals— down 39.2% compared to one year ago. In addition, the net amount of square feet absorbed (move-ins minus move-outs) stands at 557,000 sq. ft., with new supply delivering 615,000 sq. ft. to the market this year, of which 80.7% is occupied. The average asking rate of renting retail space in Austin is at $21.87 per sq. ft. on a triple net basis, up 1.3% compared to this time in 2019 at $21.59 per sq. ft.
High rents and COVID-19. Several Austin music venues have closed, naming high rents and COVID-19 as the reason, reported CultureMap in Austin. Plush, Barracuda and Scratchouse are the causalities in the Red River Cultural Heritage District near downtown Austin. The cancellation of SXSW and the stayat- home order in March has struck Austin’s business community hard, especially the local music industry.
Home inventory shortage. The Greater Austin area continued to feel the effects of COVID-19, as housing inventory dropped to critically low levels of less than 2 months of inventory in Austin, Travis County and Williamson County, according to the Austin Board of REALTORS®. Compared to May 2019, residential sales in the five-county metro area decreased 29.2%, while sales dollar volume dropped 30.8%. At the same time, the median sales price increased 0.7% to $329,893 and homes spent three fewer days on the market—an average of 47 days. To see home sales recover, more homes must be put on the market. A sign of encouragement were pending May sales, jumping 14.2%.
Director of Research
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