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Austin Retail

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Austin retail occupancy is at 95.4%, down 30 basis points from this time last year. Of the 649,000 sq. ft. currently under construction, the availability rate stands at 29.1%. Year-to-date through May, the Austin retail market has recorded 1.1 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—on par from one year ago.


Market Highlights

OCCUPANCY RATE AT 95.4%
Austin retail occupancy is at 95.4%, down 30 basis points from this time last year. Of the 649,000 sq. ft. currently under construction, the availability rate stands at 29.1%. Year-to-date through May, the Austin retail market has recorded 1.1 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—on par from one year ago. The net amount of square feet absorbed (move-ins minus move-outs) stands at 478,000 sq. ft., with new supply delivering 434,000 sq. ft. to the market this year, with an occupancy rate of 58.7%. The average asking rate of renting space is at $21.37 per sq. ft. on a triple net basis, down compared to this time in 2020 at $21.75 per sq. ft.

CONSTRUCTION STARTS ON 138-ACRE MIXED-USE DISTRICT IN KYLE
The first phase of The Brick-and-Mortar District, dubbed an urban village within Plum Creek, has begun in the 2,200-acre master-planned community underway in the growing city of Kyle. Located about 22 miles from the city, the village is anticipated to become a center for residential, Austin retail, and economic development at the intersection of Kohlers Crossing and Kyle Parkway. The Brick-and-Mortar District is planned to have 2,500 homes, 150,000 sq. ft. of retail, 250,000 sq. ft. of office space and 35 acres of parkland and trails, with partial completion expected in Q1 2022.

RETAIL AND ROOFTOPS
The greater Austin area posted record-breaking gains in May, as the median home price reached an all-time high—for any month on record—of $465,000, while both home sales and sales dollar volume skyrocketed, according to The Austin Board of REALTORS®. Residential home sales in the Austin Round-Rock MSA once again hit a record for the month of May, increasing 48% year over year to 3,976 sales. Sales dollar volume increased 116.2% year over year while monthly housing inventory dipped 1.5 months to a critically low 0.5 months of inventory. Austin retail

Leta Wauson
Director of Research
leta.wauson@naipartners.com
tel 713 275 9618

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