Pandemic uncertainties had little impact on Austin’s retail market.
Market Highlights
VACANCY RATE CONTRACTS TO 3.4%
Almost halfway through 2022, the overall vacancy in the Austin retail market has tightened to 3.4%, dropping 100 basis points from last year’s 4.4%. Availability is at 4.7%, down 130 basis points from May 2021 at 6.0%. The difference between this figure and the vacancy rate reflects expected future move-outs. Leasing activity comprised of new leases and renewals decreased slightly year-over-year at 1.08 million sq. ft. versus 1.10 million sq. ft., while net absorption (move-ins minus move-outs) is at 610,000 sq. ft., up 17% year-over-year from 524,000 sq. ft. The top transaction so far in 2022 is Brookshire Brothers signing a lease for 43,000 sq. ft. in the Far Northwest submarket of Austin at 20900 FM 1431 in Lago Vista.
AVERAGE RETAIL NNN ASKING RENTS AT RECORD HIGH
Overall positive trends in leasing activity have driven average retail asking rents higher. The Austin metro NNN average asking rent is at an all-time high of $22.69 per sq. ft., up 7.9% from $21.02 last year. In spite of the pandemic of the last two years, Austin’s retail market has remained resilient, which may suggest Austin landlords have been able to weather this storm better than other markets.
RETAIL AND ROOFTOPS
Austin’s existing-home sales increased by 0.5% in April after posting a 0.8% contraction in March. This compares with the state’s 0.2% gain in April and 2.2% contraction in March. Compared with 2021, year-to-date existing-home sales were down 0.6% in the metro and up 5.0% statewide. In April, median home prices reached a new high both in the metro and state. The median price of homes sold was $529,959 in the metro—a 10.7% rise year over year. The median price in the state was $346,760—an 11.0% jump year over year.
Leta Wauson
Director of Research
[email protected]
tel 713 275 9618
Additional Retail Content
Austin Retail | May 2022 Snapshot | Commercial Real Estate
Austin Retail | Q1 2022 Market Report | Commercial Real Estate