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Overall occupancy in the Austin retail market is at 95.6%, down 30 basis points from this time last year. Meanwhile, the triple-net average asking rental rate remains elevated, registering at $21.45 per sq. ft.
Vacancy remains tight. Overall occupancy in the Austin retail market is at 95.6%, down 30 basis points from this time last year. Meanwhile, the triple-net average asking rental rate remains elevated, registering at $21.45 per sq. ft.—though down slightly by $0.15 yearover- year. Occupancy of the 924,000 sq. ft. delivered to the market year-to-date stands at 64% and of the 1.5 million sq. ft. currently under construction, 55% of that space is already spoken for. In addition, year-to-date there has been 1.2 million sq. ft. of leasing activity— which is comprised of both new leases and renewals—slightly higher than at this time in 2018.
Block 21 to sell. The site in Austin known as Block 21, and home of the Austin City Limits television show, is being sold by Stratus Properties for $275 million. Ryman Hospitality Properties has agreed to acquire the mixed-use project with a closing date planned for Q2 2020. The property includes a 37-story building with retail space, the 2,750-seat Moody Theater (home to Austin City Limits Live), Class A office space, the 3TEN ACL Live entertainment venue and the W Austin Hotel.
Tight labor market continues. Austin’s unemployment rate remained at 2.7% in October, unchanged since July. The unemployment rate for the state stayed at 3.4% for the fourth consecutive month, while the jobless rate for the nation increased to 3.6%. In the three months ending in October, Austin added jobs at a 2.5% annualized rate, or a net 6,900 jobs. The construction sector led expansion with 1,279 net jobs (8.0%), followed by leisure and hospitality with 1,555 jobs (4.6%). Professional and business services gained 1,770 jobs.
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