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Overall occupancy in the Austin retail market is at 95.8%, up 10 basis points from this time last year. Meanwhile, the triple-net average asking rental rate registered at $21.69 per sq. ft., up by $0.01 year-over-year.


Market Highlights

Vacancy remains tight. Overall occupancy in the Austin retail market is at 95.8%, up 10 basis points from this time last year. Meanwhile, the triple-net average asking rental rate registered at $21.69 per sq. ft., up by $0.01 year-over-year. The availability rate of the 1.6 million sq. ft. currently under construction stands at 45%. In addition, there has been 724,000 sq. ft. of leasing activity year-to-date— which is comprised of both new leases and renewals—four times higher than at this time in 2019.

SXSW cancellation and retail closures. In 2019, SXSW had an economic impact of $356 million, according to festival officials. After canceling the event this year because of concerns about the spread of the coronavirus, the company announced it is cutting about one-third of its workforce, laying off 60 employees. The state of Texas became the latest in the United States to order statewide closures of all restaurants, bars, gyms and schools after major cities in the Lone Star State already closed the establishments earlier in March. The restaurant industry in Texas employs more than 1.4 million workers, according to the Texas Restaurant Association.

Jobless rate up in January. The 2.7% jobless rate for the Austin area in January is up from 2.4% in December, although it is the lowest rate for the month of January in 21 years. The local economy is moving into a time of uncertainty as coronavirus related concerns disrupt the day-to-day routine, fortunately from a strong position in the job market. Job growth over the 12 months ending in January has been led by 7,700 new jobs in professional and business services, that includes most of the technology sector, according to the Texas Workforce Commission.

 

Leta Wauson
Director of Research
[email protected]
tel 713 275 9618

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