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Overall occupancy in the Austin retail market is at 95.7%, down 40 basis points from 96.1% at this time last year. Meanwhile, the triple-net average asking rental rate remains at record highs registering $22.43 per sq. ft., up $0.43 year-over-year.
Average asking rental rates keep climbing. Overall occupancy in the Austin retail market is at 95.7%, down 40 basis points from 96.1% at this time last year. Meanwhile, the triple-net average asking rental rate remains at record highs registering $22.43 per sq. ft., up $0.43 year-over-year. Occupancy of the 539,000 sq. ft. delivered to the market year-to-date stands at 66.7% and of the 1.5 million sq. ft. currently under construction, about half of that space is already spoken for. In addition, there has been 1.5 million sq. ft. of leasing activity year-to-date— which is comprised of both new leases and renewals—equal to this time in 2018.
Crafted coffee and Chubbies. Black Rock Coffee is opening three new locations in the Austin area. The first spot in Texas will open in November at Lantana Place in Southwest Austin in a 1,900-sq.-ft. space; followed by an 1,887-sq.-ft. freestanding location at Gattis School and State Highway 130 in Pflugerville, expected to open in January; and a 1,900-sq.-ft. store on FM 620 and Smyers Lane at the Point at 620 in Round Rock, expected to open in summer 2020. Also moving to Austin is apparel retailer Chubbies Shorts with plans to leave its West Coast headquarters for a new home in Austin. It is reported that about 65 corporate employees are expected to make the move to the Texas capital city by the end of 2019.
Solid economic performance in July. Austin’s unemployment rate ticked up to 2.7% in July compared to the national rate at 3.7%, and the state registering at 3.4%. This year through July the metro’s labor force expanded 0.9% annualized, much slower than the 3.6% in 2017 and 2.7% in 2018—signifying an increasingly tight labor market in Austin. In the three months ending in July, information jobs—software publishers, newspaper publication, motion picture and video industries—slowed to a still-high 17.0% annualized, or a net 1,500 jobs. Payrolls within the professional and business services posted healthy growth during this period at 7.5%, followed by leisure and hospitality at 6.8%.
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