Occupancy is at 95.2%, down 50 basis points from this time last year. Of the 1.1 million sq. ft. currently under construction, the availability rate stands at 56.6%.
Market fundamentals. Occupancy is at 95.2%, down 50 basis points from this time last year. Of the 1.1 million sq. ft. currently under construction, the availability rate stands at 56.6%. Year-to-date through October, the Austin retail market has recorded 1.5 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—down 37% from one year ago. The net amount of square feet absorbed (move-ins minus move-outs) stands at 456,000 sq. ft., with new supply delivering 1.1 million sq. ft. to the market this year, of which 77% is occupied. The average asking rate of renting retail space in Austin is at $21.42 per sq. ft. on a triple net basis, down slightly compared to this time in 2019 at $21.64 per sq. ft.
Austin City Limits music festival goes virtual. The multiday Austin City Limits music festival, scheduled for October, went virtual with several taped performances, the latest reminder of the impact of the coronavirus pandemic. According to the National Independent Venue Association, every $1 spent on a concert generates $12 in economic activity. At least six Austin music venues including Barracuda and Threadgill’s have closed permanently since the pandemic and even more are in jeopardy. The Austin City Council is expected to consider allocating $5 million in financial assistance for live music venues, at least helping to pay the rent.
Retail and rooftops. According to the Austin Board of REALTORS®, the Austin-area housing market continues to exhibit strength, despite economic challenges and shrinking housing inventory. In September, home sales across the Austin-Round Rock MSA soared 31.5% year over year to 3,892 sales. Historically this time of year home sales are slower, but because of decreased activity during the shelter-in-place orders due to the COVID-19 pandemic, the summer selling season extended into September. When it comes to construction in suburban markets, homes simply can’t be put on the ground fast enough to meet demand.
Director of Research
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