Austin’s retail market proves its resilience with record-breaking asking rents.
VACANCY RATE CONTRACTS TO 3.4%
Four months into 2022, the overall vacancy in the Austin retail market has tightened to 3.5%, dropping 90 basis points from last year at 4.4%. Availability is at 4.6%, down 140 basis points from April 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 increased slightly year-over-year at 954,000 sq. ft. versus 884,000 sq. ft., while net absorption (move-ins minus move-outs) is at 454,000 sq. ft., up 9% year-over-year from 418,000 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 AN ALL-TIME 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 $22.62 per sq. ft., up 7.6% from $21.02 last year. With one of the strongest economies in the country over the past decade, retail landlords in Austin have significantly benefited.
RETAIL AND ROOFTOPS
April residential home sales decreased across the Austin-Round Rock MSA for the second month in a row, according to the Austin Board of REALTORS® April 2022 Central Texas Housing Market Report. Despite the dip, the five-county MSA was just 216 homes shy of breaking the record for April home sales in April 2021. Last month residential home sales declined 6.2% year over year to 3,280 closed sales as the median price rose 19.6% to a new record of $550,000. Sales dollar volume grew 11.6%, new listings dipped 0.2% to 4,653 listings, and homes spent an average of 18 days on the market, unchanged from April 2021.
Director of Research
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